Brazil’s lower house of Congress approved a bill that allows employers to reduce wages and working hours during the Covid-19 pandemic. The measure was already in place by way of a provisional decree issued by President Jair Bolsonaro. Now, with the approval of lawmakers, the federal government may renew the program while the calamity state is in progress.
In accordance with the program, if an employer reduces the salary and working hours of a given employee by 50 percent, this worker will receive a 50 percent supplementary amount paid by the federal government and calculated on unemployment insurance. If wage reduction is higher than 70 percent, the worker would receive 70 percent of unemployment insurance.
Minimum wages
On Thursday, the Senate approved an increase to the national minimum wage for 2020. In February, President Bolsonaro issued a provisional decree raising the minimum wage from BRL 1,039 to BRL 1,045.
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