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Credit, Reuters
The Swiss franc is a high-priced currency compared to the euro, the dollar, and the real.
The population of the city of Geneva, Switzerland, approved this week in a referendum the creation of a minimum wage of 23 Swiss francs per hour, equivalent to 4,086 francs a month in a weekly workload of 41 hours, or R $ 25 thousand. month.
The amount seems exorbitant by Brazilian standards, where the minimum wage is only 4% of the Swiss value: R $ 1,045 (or 170 francs). In Brazil, the Brazilian president has a monthly salary of R $ 27 thousand reais, slightly higher than the minimum in Geneva.
But Geneva is considered one of the most expensive cities in the world. A coffee in Geneva usually costs about 5 euros, or more than 30 reais.
Labor unions, which pushed through the minimum wage proposal, say there has been a large increase in the number of people seeking food donation centers due to the coronavirus pandemic.
One of the most important economic activities in Geneva is tourism, a sector that has been badly affected by the disease.
According to trade unionists, it is difficult to survive in Switzerland on an income of less than 4,000 Swiss francs a month, just the approved minimum wage.
Housing, water and electricity, public transport, health insurance and food services are among the most expensive items compared to other cities in other countries.
The monthly rent for a one-bedroom apartment in the center of Geneva costs around 1,800 francs (R $ 11,000). A worker can spend more than 670 francs (R $ 4,000) in a month on transportation, health insurance, and household bills.
But compared to other countries, the minimum wage in the Swiss city is extremely high. There are almost 3,800 euros a month, more than double the minimum wage paid in neighboring countries Germany and France (around 1,500 euros). It is much higher than the 2,000 euros paid in Luxembourg, which has the highest national minimum wage in Europe.
Switzerland does not have a national minimum wage policy, and each city must decide on this issue on its own.
The country is known for giving its citizens the ability to make various decisions by referendum.
The proposal to establish a minimum wage had been rejected in Geneva in referendums in 2011 and 2014. Now the municipality is already the third Swiss canton to establish a minimum wage.
Brazil
The contrast between wages paid in Switzerland and those paid in Brazil is huge. But this is because the purchasing power of currencies and the cost of living are very different.
Credit, EPA
Geneva has one of the highest costs of living on the planet and its economy was badly affected by covid-19
In Switzerland, a Brazilian minimum wage of R $ 1,045 or 170 Swiss francs would be enough to pay for just one cup of coffee per day of the month, approximately (based on the price of 5 euros or 5.40 francs per coffee).
In Brazil, a minimum is enough to buy two baskets of basic food in São Paulo, a Brazilian city with the most expensive food prices.
The basic basket is an estimate of the monthly cost to feed a family of four with 13 foods, such as meat, rice, beans, vegetables and fruits. It varies in Brazilian capitals between R $ 520 and R $ 380.
But when considering the total cost of living, and not just food, the purchasing power of the Brazilian minimum wage leaves much to be desired. To minimally support the expenses of a family of four, a worker would need to receive R $ 4,347 per month, more than four times the current minimum wage, according to a calculation carried out earlier this year by the Inter-union Department of Statistics and Socioeconomic Studies (Dieese ).
Geneva’s minimum wage would also provoke outrage among Brazilian teachers, whose national level is just over R $ 2,800. This means that a Brazilian professor who wins the floor would need to save nine months of salary to receive the equivalent of a minimum in Geneva.
In Brazil, a salary of R $ 25 thousand places the worker immediately at the top of the salary pyramid. A survey conducted by Oxfam last year showed that 99% of Brazilian workers receive less than R $ 23 thousand.
Still, there were those who complained about this amount. In 2019, a lawyer from Minas Gerais complained about the “miserê” that is his monthly salary of R $ 24 thousand, causing outrage on social networks.
But an important consideration to take into account, when comparing the Brazilian minimum wage with that of a city in Switzerland, is the price of the international currency.
The real was one of the world currencies that depreciated the most against the dollar since the beginning of the year. The Brazilian currency has lost around 40% of its international purchasing power since January: a dollar in Brazil today is worth around R $ 5.64, instead of R $ 4.02 at the current price in January.
Based on the real price at the beginning of the year, a minimum wage like the one announced by Geneva would be worth R $ 17,000 at that time, 30% less. Last year, when the real was even stronger, the same 4,086 Swiss francs amounted to R $ 14,000. The mere variation of the exchange rate can generate large differences in value.
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