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Brazil president signs law raising minimum wage

Brazil president signs law raising minimum wage

President Luiz Inacio Lula da Silva on Wednesday signed a law raising the minimum wage by 8.5 percent, a measure that will affect millions of working-class Brazilians.
Beginning in April, the monthly minimum will rise from US$163 (euro124) to US$177 (euro135), an increase that tops current inflation of 3.1 percent.
About 27 million people _ nearly a third of Brazilian workers _ earn minimum wage or less. Many others have salaries or pensions that are calculated according to the minimum.
Opponents of the measure called instead for tax breaks to spur private investment in infrastructure.
Silva won re-election in October with ample support from the country's poor, who have benefited from his subsidies and minimum wage increases. At the same time, he has satisfied financial markets by reining in spending and keeping a tight fiscal policy.
The increase is expected to cost the government about US$420 million (euro320 million). The president's office said in a statement, however, that the measure will inject some US$4 billion (euro3 billion) into the economy and generate US$980 million (euro740 million) in new tax revenue.


Updated : 2021-05-15 02:18 GMT+08:00