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Predicted adjustment of the minimum wage in 2024 should cost municipalities another R$ 5 billion
“There’s no way around this: if you change the minimum wage, you also change social security spending. It also affects welfare spending,” says Paulo Tafner, CEO of the Institute for Mobility and Social Development (IMDS).
Tafner does not risk an estimate of how much the pension spending of the municipalities would be affected by the adjustment of 7.65% of the minimum but points out that the effect tends to be reduced. “The municipalities have their own floor, usually above the minimum wage,” he explains. Within this logic, the increase of the minimum marginally affects those who earn a little above this floor, clarifies the expert.
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