Brasilia, December 30 (RHC)-- The Brazilian president has signed the 11.6 percent minimum wage hike in line with the 11 percent inflation this year. The raise will go into effect January 1st.

About 40 million workers and retirees will see their income increase the first day of 2016 as Brazilian President Dilma Rousseff announced a 11.6 percent minimum wage hike which is slightly higher than the 11 percent inflation reported in 2015.

Rousseff signed off on the new wage plan on Tuesday confirming an increase from 788 Brazilian reales (US$203) to 880 reales (US$227) per month.

In a statement, the government said the policy will have an impact on some 40 million workers and retirees and shows a continued commitment to raising wages to protect minimum wage earners from inflation.

The wage increase comes amid ongoing economic woes in the South American nation. The 11.6 percent increase raises the wage in line with inflation, which has also gone up about 11 percent this year according to the country’s Central Bank.

The announcement also comes as opposition members continue to attempt to impeach Rousseff despite the Supreme Court temporarily freezing the process.