Brazil Politics: Spending Plan May Adjust Minimum Wage Rules

A government plan to cut expenses and maintain fiscal rules may include changes to the law on readjustment of the minimum wage, according to Valor Economico, which cites unnamed officials.

Such a change could save as much as 11 billion reais ($1.9 billion) between 2025 and 2026, according to the report, and is among the proposals most eagerly awaited by financial markets that are looking for spending reductions.

Brazil’s minimum wage currently adjusts annually based on inflation and gross domestic product. The idea under consideration is to subject it to rules of the so-called fiscal framework, which allows spending to ...