Brazil’s Economy Minister Paulo Guedes gestures during a meeting at the Economic Affairs Committee (CAE) of Brazil’s Federal Senate in Brasilia, Brazil March 27, 2019. REUTERS/Ueslei Marcelino/File Photo
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BRASILIA, Sept 20 (Reuters) – Brazil’s economy minister, Paulo Guedes, said Tuesday efficiency gains will allow the government to raise salaries after years without significant increases in minimum wages and a pay freeze for civil servants.
Speaking virtually at an event hosted by the Brazilian Association of Supermarkets (Abras), Guedes highlighted the efficiencies gained from digitizing public services, noting that the current government has not replaced many retired officials.
“We will be able to grant moderate salary increases from now on and based on the expected inflation. From now on, we will maintain the purchasing power of salaries or even increase the purchasing power of salaries,” he said.
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The government of President Jair Bolsonaro, who is seeking re-election in October but lags behind former left-wing President Luiz Inacio Lula da Silva in opinion polls, has 14.2 billion reais ($2.76 billion) to fund higher wages for state employees provided in the 2023 budget submitted to Congress. Continue reading
The proposal did not specify the adjustment percentage or which public servants and occupations were eligible for wage increases. The government was under intense pressure from public officials to raise wages as inflation eroded its purchasing power in Latin America’s largest economy.
The draft budget projected no gains on minimum wages beyond inflation.
During the event, Guedes also said that this year Bolsonaro’s government intends to privatize the port of Santos – the largest in Latin America – after the reserve price of 3.015 billion reais ($586.32 million) for the privatization auction on was set Tuesday.
($1 = 5.1425 reais)
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Reporting by Marcela Ayres; Adaptation by Leslie Adler
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