Brazil | Minimum wage increase announced

The Brazilian government announced a 7% increase to the minimum wage.

Key Points:

• The new base minimum wage will rise to BRL$1,412 (about US$282), an increase from the previous base minimum wage of BRL$1,320.
• The adjustment considers the variation in inflation from the previous year and GDP growth over the last two years.

BAL Analysis: Businesses may see an increase in labor costs because of the new minimum wage. Employers should take the new wage minimums into account when planning their 2024 budgets.

This alert has been provided by the BAL Global Practice Group.

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