Brazil’s New Minimum Wage for 2026

Brazil’s national minimum wage has increased again to keep up with the rising cost of living. Effective January 1, 2026, the minimum amount that a worker must receive increased from BRL$1,518 to BRL$1,621 per month, representing a jump of approximately 6.8%.

Each year, the federal government adjusts the national minimum wage based on economic indicators. The formula typically considers the previous year’s inflation (measured by the INPC index) along with economic growth from prior years.

But the national wage is just the baseline. Some states and industries have their own minimum. If they’re higher than the national minimum wage, those state or industry-specific rates must be paid instead.

Of the 26 states and the Federal District, 22 follow the federal minimum wage. The others have their own minimums. For example, in São Paulo, the minimum wage for 2026 is BRL$1,804. In Rio de Janeiro, the minimum wage starts at the federal minimum of BRL$1,621 but goes up to BRL$3,158.96, depending on the line of work.

Hazard pay also applies to certain jobs that are considered dangerous or unhealthy, potentially increasing compensation by up to 40%. In addition, collective bargaining agreements for professionals in a union often override the general floor.

Since the 2026 rate applies to all work performed starting January 1, the increase must be reflected in salary payments made in February. For companies, these annual wage adjustments mean a yearly audit of employment contracts and payroll systems to stay in compliance.