Brazilians who earn the minimum wage are surprised by a new rule for 2025

The federal government announced that the income tax exemption for those earning up to two minimum wages will no longer be valid from 2025, as the exemption applies to those earning up to R$2,824. This measure, which was included in the 2025 annual budget bill, surprised millions of Brazilians who were counting on this advantage.

With the new rule, All those with a monthly income of up to R$ 3,018 (equivalent to two minimum wages in 2025) will be subject to income tax.. This change will directly affect the lives of millions of Brazilian workers, who will have to deal with lower net wages.

Specialist Leila Cunha, collaborator with FDR, comments more on income tax, check it out.

Why this change?

The decision to eliminate income tax exemption for those who earn up to the minimum wage is related to the need to increase revenues for the federal government. By expanding the taxpayer base, the government seeks to compensate for lack of resources in other areas.

What are the consequences of this procedure?

The new income tax rule in 2025 could have several consequences, such as:

• Decreased purchasing power: With less money on hand, Workers may have difficulty covering basic expenses, such as food, housing, and transportation;
• Increased social inequality: This measure may exacerbate social inequality, as the poor will be most affected by the new rule;
• Impact on the economy: A decline in the purchasing power of the population can lead to a slowdown in the economy, with reduced consumption and fewer job opportunities.

What to do?

Given this scenario, it is important for workers to familiarize themselves with the new income tax rules and seek help from accounting professionals to understand how the change will impact their finances.