IT Strategy

Brazil's minimum wage rose to R$1,621 — what it costs employers

The 6.79% adjustment in effect since January 1 doesn't just affect minimum-wage earners. Payroll taxes and benefits rise with it — the real cost outpaces the nominal raise.

January 05, 2026|5 min read

The number already in effect

Since January 1, 2026, Brazil's minimum wage is R$1,621 — up R$103 from 2025's R$1,518, a 6.79% adjustment. That percentage came from adding 2025's inflation index (INPC, 3.90%) to a real gain tied to GDP, guaranteeing roughly 2.5% purchasing-power growth above inflation.

For anyone just glancing at payroll, it looks like a simple number to update. It isn't quite that simple.

Why the real cost rises more than the nominal raise

Every benefit and payroll charge tied to the minimum wage rises with it: severance fund contributions (FGTS), employer social security (INSS patronal), vacation pay, the 13th-month salary, allowances, and overtime. That means for every employee earning at or near the minimum, the company's total outlay increases by more than the R$103 headline raise — because taxes and obligations apply to the new value, not the old one.

A business that only updated the paycheck without recalculating these charges risks closing the month with numbers that don't add up.

What to review this week

Three checks cover most of the adjustment: recalculate FGTS and employer INSS for every employee earning up to one and a half minimum wages, since the proportional effect is largest in that range. Then confirm your payroll system (in-house or outsourced) is already applying the new R$1,621 value correctly, not last year's. And review any service-provider or outsourcing contracts whose value is pegged to the minimum wage — those rise automatically too.

Where Diglion comes in

Diglion helps small businesses confirm payroll and finance systems already reflect the new minimum wage correctly, avoiding a cash surprise early in the year.