MINIMUM WAGE, MAXIMUM DISPARITY: A CRITICAL EXAMINATION OF LAW ENFORCEMENT IN BRAZIL AND PROPOSALS FROM GLOBAL BEST PRACTICES

Abstract

This paper examines regional disparities affecting the enforcement of labour laws, specifically Article 7 of the Brazilian Federal Constitution and Chapter 3 of the Consolidation of Labor Laws, which mandate the implementation of a national minimum wage. Findings show significant informal employment in Brazil's northern and northeastern regions, where many earn below the legal minimum wage. In contrast, the central and southern regions provide better salaries and formal employment. According to 2023 PNAD data, the northeastern region has the highest percentage of workers earning below the minimum wage. Key institutions like the Ministry of Labor and Social Security, State Economic Development Secretariats, and the Superior Labor Court are responsible for addressing these issues. Based on our comparative legal analysis, we propose improvements for Brazilian institutions by integrating international practices and minimum wage policies from the UK, Germany and Australia.