Emergency Covid-19 aid has been essential for low-income workers

The next tug of war between Brazilian President Jair Bolsonaro and Congress is set to revolve around the emergency coronavirus aid paid out to vulnerable populations, initially slated as a three-month program of BRL 600 monthly payments. With the term of the benefit coming to an end, nearly every major power broker in the capital agrees that extending the aid is a necessity — despite the federal government claiming it does not have the funds to keep it going.

A study by Brazil’s Institute of Applied Economics (Ipea) — using data provided by a household survey held by the Brazilian Institute of Geography and Statistics (IBGE) — shows that, as of May, roughly 39 percent of Brazilian households had access to the benefit. Those eligible included unemployed and informal workers, individual very-small business owners, recipients of the Bolsa Família cash-transfer scheme, and single mothers — who received double the benefit amount.

On average, recipient households were given BRL 846 each — which amounts to 45 percent of the average income of currently employed workers and 78 percent of self-employed workers’ income. For domestic workers — who...