Brazilian Courts Uphold Bank Salary Deductions and Limit Non‑Profit Savings Immunity

The Tribunal de Justiça do Distrito Federal e Territórios (TJDFT) upheld a lower‑court ruling that allows Banco de Brasília (BRB) to retain salary deductions that exceed 30% of public servants' monthly pay. Judge James Eduardo Oliveira rejected a request to block further deductions, stating that the proposed limit would financially weaken BRB and would not protect the district’s assets. The case will return to first instance for a merits review.

The Superior Tribunal de Justiça (STJ) ruled unanimously that the legal protection shielding up to 40 minimum‑wage amounts in savings accounts does not apply to nonprofit entities. Minister Nancy Andrighi, author of the decision, emphasized that the rule is intended for natural persons to preserve a minimum subsistence level and that extending it to legal persons would create an unjust privilege. Consequently, the seizure of funds in a nonprofit’s account was maintained.