Nikolas Ferreira proposes automatic salary cuts for Brazilian politicians

Federal Deputy Nikolas Ferreira has introduced a Constitutional Amendment Proposal (PEC), dubbed the ‘PEC da Responsabilidade’, which mandates automatic salary cuts for high-ranking officials during periods of fiscal imbalance. The proposal targets the subsidies of deputies, senators, the president, vice-president, and ministers of state.

Under the proposed mechanism, salaries would initially be reduced by 25%. If the fiscal imbalance persists into the following year, the reduction could reach 50%. The trigger for these cuts would be the failure to meet fiscal targets for two consecutive years or an accumulated increase in gross debt of at least five percentage points relative to GDP during that period. The Federal Court of Accounts (TCU) would have up to 60 days to confirm the fiscal situation.

In addition to salary reductions, the PEC includes measures to limit discretionary spending, suspend non-essential benefits for authorities, and block salary adjustments. The proposal aims to protect essential services such as health, education, public security, and social security benefits. To proceed, the proposal requires 171 signatures from deputies to begin its legislative journey through the Constitution and Justice Committee and the plenary.