Brazil’s minimum wage rose above inflation under Lula

Brazil’s minimum wage reached R$1,621 in 2026, after rising 11.8% above inflation during President Luiz Inácio Lula da Silva’s government.

That means people on the minimum wage can buy more than before.

During Jair Bolsonaro’s government, increases from 2020 to 2022 barely kept pace with prices, and purchasing power gained only 1.2% overall, much of it from an increase set under an earlier rule.

The minimum wage also sets the floor for millions of social security pensions and benefits, so increases raise those payments too.

Higher pay can boost workers’ spending, but it also raises costs for employers and government spending, which can put pressure on public finances.

Flávio Bolsonaro has said he would not separate the minimum wage from inflation, but his government plan does not promise increases above inflation.

If elected, he could return to a policy that protects the wage’s value against rising prices without increasing its purchasing power.