Government Lula reduces minimum wage from 2026 to R$ 1,627

The government of Luiz Inácio Lula da Silva (PT) reduced the forecast for the minimum wage in 2026 from R$ 1,631 to R$ 1,627. The reduction of R$ 4 in the minimum wage was driven by the expectation that this year’s inflation will be lower than initially projected. If confirmed, the new value estimated by the government will represent an increase of 7.18% compared to the current minimum wage, which is R$ 1,518. The calculation follows the formula for adjusting the minimum wage valorization policy, with increases above inflation.