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Brazil has increased the national monthly minimum wage to BRL 1,518.00. This change affects all employees in Brazil and sets the new floor for monthly compensation. Employers must ensure all employees earn at least this amount per month to remain compliant with Brazilian labor law.
Brazil Increases National Minimum Wage to BRL 1,518.00 per Month
Effective January 1, 2025, Brazil's national monthly minimum wage increased to BRL 1,518.00, as established by Presidential Decree No. 12,342 issued on December 30, 2024. This represents the new floor for monthly compensation across all sectors and applies to every employee working in Brazil.
Who is affected
This change affects all employers operating in Brazil, regardless of company size or industry. Every employee working under Brazilian labor law must receive at least the new minimum wage. The decree also establishes corresponding daily and hourly minimum rates: BRL 50.60 per day and BRL 6.90 per hour.
What's changing
The national minimum wage increased from the previous rate to the new statutory floor:
| Frequency | New Minimum Wage (effective 2025-01-01) |
|---|---|
| Monthly | BRL 1,518.00 |
| Daily | BRL 50.60 |
| Hourly | BRL 6.90 |
All employment contracts, payroll systems, and compensation structures must reflect these updated amounts. Employers paying the previous minimum wage must adjust salaries upward to meet the new threshold.
What NEO partners and clients should do
- Update payroll systems to reflect BRL 1,518.00 monthly minimum wage no later than the first pay period in January 2025
- Review all employee compensation to ensure no worker earns below the new minimum on a monthly, daily, or hourly basis
- Adjust employment contracts and offer letters for new hires to reference the current minimum wage amounts
- Communicate the change to affected employees and confirm updated salary amounts in writing
Sources
- Presidential Decree No. 12,342 of December 30, 2024: https://www.planalto.gov.br/ccivil_03/_ato2023-2026/2024/decreto/D12342.htm
