The Brazilian minimum wage, a pillar of social protection in the country, was introduced in 1936 and officially recognized in 1940 under President Getúlio Vargas. As it turns 90, the minimum wage faces unprecedented challenges, primarily due to the emergence of the gig economy characterized by app-based jobs. A recent study by the National Bureau of Economic Research highlights that while approximately 88% of minimum wage increases benefit informal workers in formal businesses, this advantage does not extend to those working as delivery drivers or platform workers, who are increasingly significant in the labor market.

Economists have coined the term "lighthouse effect" to describe how minimum wage adjustments influence salaries in formal employment. However, this effect does not apply to gig economy workers, who often lack the same protections and benefits associated with formal employment. The implication of this divide poses significant challenges for the minimum wage as it struggles to remain relevant in an evolving labor landscape where traditional job models are disrupted.

Current analyses suggest that the unemployment rate in Brazil is at 5.1%, a figure that may not accurately reflect the reality faced by those working in the gig economy. The rise of precarious work conditions presents further questions about the future of minimum wage policies and the social safety net they provide. As the labor market continues to adapt, the need for policy adjustments that consider both formal and informal employment becomes increasingly critical, ensuring that the minimum wage remains a cornerstone of workers' rights in Brazil.