Ipea study indicates 7.84% rise in labor costs from ending 6x1 schedule

A study by the Institute of Economic Research Applied (Ipea), released on February 10, 2026, estimates that ending the 6x1 schedule would raise formal labor costs by 7.84%, assuming a reduction from 44 to 40 weekly hours. For a 4x3 schedule with 36 hours, the increase would be 17.57%. The authors argue that the economy could absorb this impact, similar to minimum wage adjustments.

The Ipea study, prepared by Felipe Pateo, Joana Melo, and Juliane Círiaco, examines the impact of reducing work hours for CLT-governed contracts. Drawing from the 2023 RAIS, which records 44 million CLT workers, 31.8 million work 44 weekly hours, or 74% of those reported.

"It is true that there is a cost, but there are various indications that it can be absorbed. These are costs with which we have had similar experiences and the economy was able to absorb them," said Pateo, an Ipea planning and research technician.

The accounting logic explains the rise: with fewer hours but the same monthly salary, the hourly value increases, creating additional costs for companies. Sectors like surveillance, security, cleaning, and personnel selection would face a 6% operational cost increase due to heavy labor reliance. Industry and commerce, employing 13 million workers with technology use, would see only a 1% impact.

In 31 of 87 economic sectors, over 90% of workers exceed 40 weekly hours. The authors note that the 1988 Constitution's reduction from 48 to 44 hours had no negative employment effects. Amid historic low unemployment, the change could draw more workers to formal jobs, curbing informality.

Pateo stresses the cost is non-cumulative and occurs once, with diluted effects if gradual. PEC 148/2015, by Senator Paulo Paim (PT-RS), approved in the Senate's CCJ in December 2025, outlines progressive cuts: from 44 to 40 hours in the first year, then one hour annually to 36 hours. There would be no ongoing inflationary propagation, per the study.

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Presidents of PL and União Brasil announced efforts to prevent the PEC ending the 6x1 schedule from advancing in the Chamber's Constitution and Justice Committee. They argue a plenary vote would be difficult in an election year. The proposal amends the Constitution to cap the workweek at 36 hours.

Constitutional amendment proposals in Brazil's National Congress aim to cut the weekly work hours from 44 to 36 without salary cuts and extend rest to up to three days. The issue splits opinions between advocates for health and quality of life and critics concerned about productivity and the economy.

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A coalition of 25 parliamentary fronts linked to the productive sector called on Monday (March 2) for deeper debates and a delay in analyzing proposals to end the 6x1 work schedule, criticizing the calendar proposed by Chamber President Hugo Motta. The group argues that the discussion is tainted by electoral bias, tied to President Lula's campaign. Productive sector representatives warn of negative economic impacts from a quick change.

The Economic Thinking Center of Anif has warned of the negative effects of the 23% minimum wage increase, which will generate an additional fiscal cost of 3.8 trillion pesos for the Government in 2026. Though celebrated by the administration, this measure will raise labor costs and could boost informality and inflation. The entity highlights impacts on public payroll, pensions, and tax revenue.

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Colombia's minimum wage rose 23% for 2026, prompting over 14% of firms to switch from integral to ordinary salaries. A study by the Colombian Federation of Human Management indicates 32% of companies cut expenses while 24% turn to AI automation. Meanwhile, J.P. Morgan notes a robust labor market beforehand, with unemployment at historic lows.

CSU leader Markus Söder has called for an additional hour of work per week in an ARD broadcast to boost Germany's economic growth. He advocates for quick reforms despite upcoming state elections. Further measures include abolishing telephone sick notes and phasing out retirement at 63.

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One week after President Gustavo Petro decreed a 23% minimum wage increase for 2026—setting it at 1,750,905 pesos based on ILO 'minimum vital' standards for a three-person family—experts warn of inflation exceeding 6%, interest rates rising to 11-12%, and price hikes across sectors, potentially eroding informal workers' purchasing power.

 

 

 

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