TCU issues rulings on contract limits and public service pay

The Brazilian Federal Court of Accounts (TCU) has issued two significant rulings affecting public administration and civil service management.

In Acórdão 1753/2026-Plenário, the TCU determined that the percentage limits for unilateral changes to administrative contracts, as established by Law 14.133/2021, also apply to consensual changes agreed upon by both parties. This decision extends the restrictions originally intended for unilateral modifications to bilateral agreements, despite the absence of specific limits for consensual changes in the text of the New Bidding Law.

Additionally, through Acórdão 1869/2026, the TCU Plenary approved a decision regarding the constitutional remuneration ceiling. The ruling establishes that the ceiling applies separately to the remuneration of permanent positions and to the compensation received from trust functions or commissioned roles. The decision, passed with an 8-to-1 vote, aims to rebalance the attraction of talent to strategic leadership and advisory positions within the federal public service, despite criticisms that it creates a fragmented remuneration regime.