Minimum wage in Brazil is the second lowest among 31 countries, shows OECD

Brazil’s real minimum wage is the second lowest in a list of 31 countries made by the OECD (Organization for Economic Cooperation and Development), just ahead of Mexico. The ranking, which traditionally has 32 countries, did not consider Japan in this edition.

The survey gathers data from 2021 on the remuneration of workers in the world. The list brings together OECD nations, plus Brazil and Russia.

Currently, the minimum wage in Brazil is R$1,212. Last year, the period considered for the research, it was R$ 1,100.

Economy Minister Paulo Guedes has a plan that provides for no longer readjusting the minimum wage and pension for the previous year’s inflation, if President Jair Bolsonaro (PL) wins reelection. By the proposal, the floor “considers the inflation expectation and is corrected, at least, by the inflation target”. Spending on social security benefits “is also no longer linked to past inflation.”

The survey used the dollar as the base currency, and wages were adjusted for purchasing power parity (PPP). Also according to the OECD, in the preparation of the calculation, the inflation of each country is also considered.

According to the ranking, Brazil has an average minimum wage of US$ 5.21 per hour. Mexico, at the bottom of the list, has an average minimum wage of $3.32 an hour.

Luxembourg leads the way with an average minimum wage of $27.7 an hour, followed by the Netherlands with $26.2 an hour and Australia with $25.2.

In Latin America, Brazil lags behind countries like Chile (US$ 8.3/h) and Colombia (US$ 8.1/h).

Lowest average since 2016

According to the OECD survey, Brazil occupies the second worst place in the ranking since 2018, when it was overtaken by Russia.

Although there is no change in position in recent years, the study indicates a reduction in the average real minimum wage in Brazil in 2021, compared to the previous year. According to the survey, in 2020, the country had an average minimum wage of US$ 5.36 per hour.

Last year’s indicator is just below the one registered in 2016, when the study pointed to an average minimum wage of US$ 5.18 per hour.