The Brazilian Senate officially approved Project Law 4.614/24 on December 20, 2024, introducing new regulations to the national minimum wage and revising the Benefício de Prestação Continuada (BPC). The measure arrives as part of the government's strategy to streamline spending and is set to reduce government expenditures significantly over the coming years. This project received substantial attention due to its direct effect on low-income Brazilians, especially elders and people with disabilities.
The newly passed law limits the real increase of the minimum wage to 2.5% above inflation, ensuring at least 0.6% real growth even during economic downturns. According to Rogério Carvalho (PT-SE), the relator of the project, "Even with zero or negative GDP growth, wage growth will be guaranteed. The text protects social benefits so they remain linked to the minimum wage, ensuring real increases yearly," as reported by Agência Brasil.
This adjustment stems from previous challenging economic variables, and forecasts suggest the measure could save R$ 109.8 billion from 2025 to 2030. The amendments not only affect wage earners but also the nation’s social safety net, especially the BPC, which provides financial support to the elderly and persons with disabilities who cannot sustain themselves.
The modifications to the BPC, which is equivalent to one minimum wage monthly, were particularly contentious. Originally, the project proposed restricting BPC eligibility to those with moderate or severe disabilities, which raised alarms among advocates. Senator Mara Gabrilli (PSD-SP), who has personal experience with disability, emotionally argued against these restrictions, stating, "A person with ataxia? You could never be regarded as 'mild' with such conditions," reflecting the broader worries about the project impacting vulnerable populations.
Despite these concerns, Carvalho assured the Legislature and public about the commitment to keep the BPC accessible to all who need it, regardless of the degree of disability. He mentioned, "We're discussing how the government will guarantee access to this benefit for everyone who needs it now and for those who will need it tomorrow," confirmed by Agência Brasil. This pledge acts as reassurance, as numerous families depend on this assistance for their day-to-day survival.
Moving forward, the project stipulates mandatory biometric registration for all beneficiaries of government programs, including BPC and pension benefits. Biometric registration aims to reduce misuse of funds, but there are provisions for people living in difficult-to-reach areas, who might not have easy access to such registration.
These legislative changes come as adjustments are made to the Fundo Constitucional do Distrito Federal (FCDF) and other social programs, demonstrating the administration's commitment to restructure financial assistance. Recognizing this discretion with the FCDF, the government had initially sought changes to limit contributions but reversed course due to pressures from members of Congress advocating for broader protections.
The Senate's decision follows the passing of similar legislation by the Chamber of Deputies the day prior, enabling the government to advance with its fiscal consolidation agenda. Advocates for individuals with disabilities stress the need for more extensive conversations about how these changes will affect those dependent on government aid.
Facing economic challenges and addressing concerns of fraud or misuse of funds, the government has sought to recalibrate the balance between budgetary discipline and social welfare. Joe Veras, spokesperson for the Brazilian Institute of Social Responsibility, articulated the fear of procedural changes overriding the welfare imperative: "We must not forget the brazen lines between ensuring accountability and excluding those who genuinely need help."
Looking to the future, the Brazilian government’s amendments to the wage policy and social benefits demonstrate a dual focus: curbing public spending alongside supporting those who rely on its assistance. The measures aim to create systems of accountably within social benefit programs without scorching the threads of safety nets for the most vulnerable. The freshly passed measures are now awaiting presidential sanction; how they are enacted will shape the socio-economic fabric of Brazil for years to come.
