Brazil healthcare worker compensation and retirement reforms

The Brazilian government is advancing legislative measures to adjust compensation and benefits for healthcare workers.

In early August, the Federal Senate approved a constitutional amendment establishing a special retirement regime for community health agents and those fighting endemic diseases. The law sets retirement ages at 57 for women and 60 for men, with provisions for accelerated retirement after 25 years of contribution. While the amendment extends benefits to indigenous health and sanitation agents, the federal government is considering a Supreme Court challenge, citing concerns that the measure creates mandatory spending without a clear financing source.

Regarding professional compensation, the Economic Affairs Commission (CAE) approved Bill 1,365/2022, which proposes a new minimum wage floor for doctors and dentists. The legislation sets the floor at R$ 13,662 for a 20-hour work week, a substantial increase from the current R$ 3,636. To mitigate labor market impacts, the proposal mandates a three-year gradual transition: 40% of the value in the first year, 70% in the second, and 100% in the third. The bill also includes annual IPCA-based adjustments for the private sector and increases night shift and overtime premiums to 50%.

While the proposal requires the Federal Government to compensate states and municipalities through the National Health Fund (FNS), the National Confederation of Municipalities (CNM) has raised concerns. The CNM estimates the proposal could cost municipal governments R$ 25.9 billion, arguing that federal compensation may not sufficiently mitigate the financial strain on local administrations already facing budgetary difficulties.