Brazil's Minister of Finance, Dario Durigan, confirmed on Monday that the minimum wage for 2027 has been set at R$1,741, aligning with legal adjustments tied to inflation and GDP growth from two years prior. The figure was disclosed during a meeting with government officials, including President Luiz Inácio Lula da Silva and Minister of the Chief of Staff Miriam Belchior.
The announcement follows the government's progress on the 2027 Annual Budget Bill (PLOA), which is on schedule for submission to Congress by the constitutional deadline of August 31. Durigan stated that the budget process is well underway, with the minimum wage adjustment already integrated into the proposal. The adjustment mechanism ensures that benefits indexed to the minimum wage, including Social Security payments, will reflect the new figure.
The 2027 budget proposal incorporates the new tax reform model, which was approved last year. The reform aims to simplify Brazil's tax system, though its implementation timeline remains subject to legislative and regulatory steps. Congress has until December 22 to return the approved budget bill for presidential sanction.
The minimum wage adjustment for 2027 is calculated based on the inflation rate over the past 12 months and the GDP variation from 2025, as mandated by Brazil's fiscal framework. This approach ensures that the adjustment remains within fiscal constraints while providing support to lower-income populations.
The government's budget proposal is structured to prioritize social spending, with the minimum wage increase expected to benefit approximately 24 million beneficiaries of Social Security and other indexed programs.
