Brazil's Finance Minister, Dario Durigan, said on Monday (24) that the federal government estimates the minimum wage at R$ 1,741 for 2027. The figure will be included in the annual budget bill, known in Brazil as PLOA, which must be sent to Congress by August 31, according to G1.
The estimate is higher than the one in the 2027 Budget Guidelines Law (PLDO), in which the government had calculated a floor of R$ 1,717. If confirmed, the new value represents a raise of about 7.4%, or R$ 120, over the current minimum of R$ 1,621. According to Poder360, Durigan spoke to journalists at the Finance Ministry after meeting President Luiz Inácio Lula da Silva and the economic team to finalize the 2027 budget proposal.
"The minimum wage, with the readjustments provided by law, reaches R$ 1,741 next year. Following Brazilian legislation, and in line with our spirit of privileging the poorest population, it will also apply to Social Security and to the social benefits indexed to the minimum wage," the minister said, as quoted by G1.
Final figure only in December
The number can still change until December 2026. The definitive minimum wage will only be known when the November reading of the INPC, the inflation index used to correct the floor, is released. Under the current rule, the readjustment combines the INPC accumulated over 12 months through November of the previous year with GDP growth from two years earlier.
Durigan ruled out unlinking the minimum wage from social benefits, which means pensions and other payments tied to the floor will also reflect the raise. The minister said the 2027 budget proposal foresees a surplus, with the government spending less than it collects next year.
The minimum wage now stands at R$ 1,621, after a 6.79% readjustment granted this year. Created in January 1936 under President Getúlio Vargas, the Brazilian minimum wage turned 90 in 2026. Dieese, a labor research institute, calculates that the wage needed to support a family of four should be R$ 7,425.99, or 4.58 times the current floor.