Brazil updates its national minimum wage every year to adjust for inflation and economic growth. Some industrial states also set higher regional minimum wage floors.
Key Wage Components
- National Statutory Minimum: Set annually by the Federal Government, establishing the legal wage floor for all formal CLT employees nationwide.
- Regional Minimum Floors: States such as São Paulo and Rio de Janeiro set higher minimum wage levels (Piso Salarial) for specific professional categories.
- Impact on Payroll Costs: Minimum wage adjustments directly affect statutory social security (INSS) contributions and severance fund (FGTS) calculations.