BRASILIA, Feb 18 (NNN-XINHUA) — Brazilian President Luiz Inacio Lula da Silva announced the minimum monthly wage will increase from the current 1,302 reais to 1,320 reais (251 U.S. dollars) starting May.
Lula said his administration would set a new rule for the minimum salary taking into account inflation compensation and GDP growth, saying “it is the fairest way to distribute economic growth.”
Those earning less than 2,640 reais (505 dollars) a month would be exempted from income tax and the exemption level will progress until it reach 5,000 reais (958 dollars), he said.
The tax reduction is high on the new government’s economic agenda. — NNN-XINHUA
