Brazil Sets 2026 Minimum Wage at R$1,621 by Presidential Decree

Overview

• The new floor takes effect on January 1, 2026, lifting the minimum from R$1,518 to R$1,621, a R$103 increase equal to 6.79%.
• Benefits indexed to the minimum, including pensions, BPC and unemployment insurance, will be paid at the updated amounts at the start of February.
• The calculation applied INPC inflation of 4.18% over 12 months to November plus 2024 GDP growth, capped to a 2.5% real gain, yielding R$1,621 instead of roughly R$1,636 without the cap.
• Government estimates indicate each R$1 added to the minimum costs about R$420 million in 2026, putting the R$103 adjustment near R$43.2 billion in extra mandatory spending.
• The value is lower than earlier budget projections of R$1,627–R$1,631 due to slower inflation, and the wage serves as a reference for roughly 60–62 million Brazilians.