Brazil's Finance Minister is considering the reduction or elimination of the salary bonus, a key social policy aimed at supporting low-income workers, which critics say would reverse progress in poverty alleviation.
In a recent interview, Brazil's Finance Minister hinted at a potential redesign of social policy that could involve the reduction or elimination of the salary bonus, a critical support for the country's low-income workers. This proposal comes at a time when the nature of poverty in Brazil has evolved, with many workers now becoming excluded from the labor market. Advocates for the salary bonus argue that it is essential for combating the current economic challenges faced by vulnerable populations.
The salary bonus was established under Article 239 of the Brazilian Constitution to provide assistance to workers earning up to two minimum wages. This benefit ensures that low-income workers receive an annual salary payment equivalent to one minimum wage — effectively functioning as a 14th salary, which amounts to approximately R$ 136 per month. Its goal is to provide a necessary financial buffer for the most vulnerable segments of society and incentivize work among the poor.
Critics of the proposed changes argue that dismantling or reducing the salary bonus would constitute a significant step backward in Brazil's fight against poverty. As the demographic of poverty shifts to include more workers sidelined by economic conditions, maintaining and possibly enhancing supportive measures like the salary bonus is seen as crucial to preventing further social and economic disparity in the country.
