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Law that establishes wage floors of nurses, nursing technicians, assistant nurses and midwives published

8 de agosto de 2022

Brazilian Federal Law No. 14,434/2022 was published on August 05, 2022, as a result of Bill No. 2,564/2020, which establishes the monthly wage floors of BRL 4,750.00 for nurses, BRL 3,325.00 for nursing technicians and BRL 2,375.00 for assistant nurses and midwives. Such wage floors are applicable to professionals employed under the Brazilian Consolidated Labor Laws (CLT).

The President of Brazil vetoed the provision that ensured the automatic annual adjustment of such amounts, based on the National Consumer Price Index (INPC). Therefore, such adjustments will be subject to the general rule, that is, the collective agreement definition resulting from negotiation with professional unions that represent the category.

According to the new law, collective agreements must comply with the newly established wage floors, and their reduction through collective bargaining is prohibited.

These wage floors immediately came into force. Previous wage amounts that were higher than the new floors on the date the new law came into force were maintained, regardless of the employee’s working hours. 

In parallel, as a way of guaranteeing the effectiveness of the wage floors, the National Congress enacted Constitutional Amendment No. 124/2022, which authorizes the establishment of wage floors through Federal Law, and must be adhered by legal entities of public and private law (included in Article 198, paragraphs 12 and 13).

Within the public sphere, the main risk concerning the effectiveness of the new law results from the lack of a provision regarding the source of funding for this amount in the federal, state and municipal budgets. According to the working group established to monitor and study the proposal, the cost increase for the health sector will amount to BRL 16.3 billion. The President of Brazil and the National Congress have not yet officially stated their opinions on the source of funding.

Within the private sphere, the new law can also result in increased payroll costs, as well as require a restructuring of jobs, wages and working hours, including from the perspective of equal pay.

Demarest’s Labor & Employment and Life Sciences team is monitoring new developments on the matter and is available to provide any further clarification and assistance that may be necessary.


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