Brazilian courts rule on public servant salaries and career laws

The Court of Accounts of the State of Paraná (TCE-PR) has ruled that the constitutional one-third vacation bonus should not be included in the calculation of the salary ceiling for public servants and political agents. This decision, made in response to a consultation from the municipality of Apucarana, establishes that until the National Congress passes federal legislation to regulate the matter, the bonus remains exempt from the limit. The court noted that under Constitutional Amendment No. 135/2024, only the Union has the authority to define which indemnity portions are excluded from the ceiling.

Separately, the Supreme Federal Court (STF) has declared portions of Curitiba's municipal laws unconstitutional. These laws, enacted in 2014, restructured the careers of education sector employees. The STF invalidated rules regarding functional progression due to a lack of prior budgetary allocation and struck down provisions that expanded special retirement eligibility to staff not strictly within the teaching career. However, the court applied the principle of modulation of effects, meaning the previous outcomes produced by these laws will be preserved rather than requiring the return of salaries.