The current Brazilian national minimum wage programme was implemented in 1988 with the aim of providing a subsistence income for workers as well as their families. The national minimum wage is determined at least once a year by the federal government. The adjustment of the minimum wage is determined by the executive, and is based on economic datasets, including the previous year’s inflation rate, the two previous years’ GDP data, as well as social factors. Since the 1990’s the national minimum wage has been increased at a rate higher than inflation, however, recent fiscal constraints on the Brazilian economy have seen increases fall closer in line with inflation.
There is strong sentiment from COSATU that the Brazilian case study be used as a model to be emulated by South Africa in the creation of its own national minimum wage. Coleman has stated that while Brazil faces many of the same socio-economic issues as South Africa, such as high unemployment, high income inequality, and high poverty levels, it continues to make strides in reducing these issues through the use of an aggressive national minimum wage, giving rise to what he has termed …show more content…
While India utilises a national wage floor, it is set extremely low. Practically, individual sectors’ minimum wages are set independently in respective geographical areas, resulting in a minimum wage structure that is highly sectorally and geographically fragmented. Each sector in each geographical area has its own council, comprising representatives from employers, employees, and government officials. Rani et al. estimated that this system has resulted in 1171 different statutory minimum wages in India. Aimed at acting as a floor beneath the collective bargaining process, this approach to setting a national minimum wage in may be considered as a model to be emulated by South