Good morning! Today, the Economy Minister’s plan for the minimum wage. Fuel prices and the presidential race. And a move against one of Brazil’s most prominent hackers.
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A new fiscal framework for Guedes?
Newspaper Folha de S.Paulo on Wednesday reported that Economy Minister Paulo Guedes is keen on removing the minimum wage peg to inflation. He responded by calling the story “fake news,” but admitted to the possibility of debating changes to Brazil’s fiscal framework, which would include unpegging the minimum wage.
How it is now. The nationwide minimum wage in Brazil is enshrined in law and is currently adjusted annually for inflation according to the INPC, an index that calculates salaries’ purchasing power. For its survey, it targets families earning up to five times the minimum wage (while the IPCA benchmark index encompasses a broader share of the population).
Why it matters. Pensions and benefits (on which 30.7 million people live) are tied to the minimum wage. Removing the inflation peg would put these individuals at great risk of losing...