BRASILIA (Reuters) – Brazil’s economy minister Paul Guedes said on Tuesday that increased government efficiency will allow wages to rise after years of not meaningfully raising the minimum wage and freezing civil servants’ salaries.
At an event hosted by the Brazilian Association of Supermarkets (Abras), Guedes highlighted the efficiency gains brought about by the digitization of public services, noting that the current government has not replaced many retired civil servants.
“From now on, we will be able to raise wages modestly based on expected inflation. From now on, we will maintain purchasing power and even increase the purchasing power of wages,” he said.
President Jair Bolsonaro’s government seeks re-election in October but trails former leftist President Luis Inacio Lula Da in opinion polls Silva (Luiz Inacio Lula da Silva), he set aside 14.2 billion reais (2.76 0 billion) to fund wage increases for civil servants in the 2023 budget bill submitted to Congress.
The proposal does not specify adjustment percentages or which civil servants and occupations are being considered for addition. Governments have been under intense pressure to increase wages for civil servants as inflation erodes their purchasing power in Latin America’s largest economy.
The budget bill foresees no benefit to the minimum wage other than inflation.
During the event, Guedes also said that Bolsonaro’s government intends this year to sell Latin America’s largest The port of Santos is privatized. 015 billion reais ($015.32 million) with Privatization auction on Tuesday.