Brazil Ministry of Finance considers cutting public sector super-salaries

The Brazilian Ministry of Finance is developing a fiscal adjustment package for 2027 aimed at containing public spending. A primary focus of the plan involves addressing super-salaries and additional benefits, known as penduricalhos, within the civil service.

Economic officials are evaluating measures to restrict remunerations that exceed the constitutional ceiling, which is currently set at R$ 46,366.19. Estimates suggest that these excessive payments and additional perks cost the public treasury approximately R$ 20 billion annually.

The initiative follows pressure from financial market investors to implement more consistent expenditure controls to manage the public debt trajectory and high interest rates. While previous strategies focused on increasing revenue, the government now seeks to balance the budget to accommodate social commitments announced during the presidential campaign.