The Brazilian government announced a 7% increase to the minimum wage.

Key Points:

• The new base minimum wage will rise to BRL$1,412 (about US$282), an increase from the previous base minimum wage of BRL$1,320.
• The adjustment considers the variation in inflation from the previous year and GDP growth over the last two years.

BAL Analysis: Businesses may see an increase in labor costs because of the new minimum wage. Employers should take the new wage minimums into account when planning their 2024 budgets.