Brazil to continue to increase minimum wage’s purchase power

Brazilian President Dilma Rousseff said Monday that the government will continue with its policy of increasing the purchasing power of the minimum wage.

In her weekly radio show, Rousseff said that the recently-signed Minimum Wage Valorization Law, which foresees the regulations for the minimum wage rises in the next five years, is important to bring stability to the economy.

“With the law, everyone knows the rules and criteria to raise the minimum wage beforehand,” she said.

According to the president, the minimum wage must keep up with the Brazilian economy’s growth.

“The minimum wage must have real gains,” she said.

The law, which takes effect on March 1, raises the country’s minimum wage from 540 to 545 reais (325 to 328 U.S. dollars) this year.

Brazil’s minimum wage is raised taking into consideration the GDP figures of two years previous. As the country’s GDP fell in 2009, it resulted in a lower rise in 2011. In 2012, however, the wage rise is expected to be high, as Brazil’s GDP growth in 2010 is estimated at seven percent.

According to Rousseff, the minimum wage is expected to reach 616 reais (371 dollars) next year.