President Lula has partially sanctioned a pay raise for employees of the Brazilian Congress and the Court of Accounts while vetoing prospective increases that exceed constitutional pay limits.
On October 17, 2023, the presidential office in Brazil announced that President Luiz Inácio Lula da Silva has officially sanctioned a partial adjustment to salary for employees within the Chamber of Deputies, the Senate, and the Federal Court of Accounts (TCU), effective for the year 2026. This adjustment is poised to be published in the Official Gazette of the Union on October 18, reflecting the government's stance on public service payroll management amidst broader economic conditions that necessitate fiscal responsibility.
In his decision, President Lula opted to veto specific provisions within the law that would have allowed for gradual pay increases in the years 2027, 2028, and 2029, as well as retroactive payments for permanent expenses. Furthermore, he rejected the creation of a compensatory leave, which could have converted into cash payments potentially exceeding the constitutional salary ceiling currently established at R$ 46,366.19. These vetoes signal his administration's commitment to adhering to fiscal guidelines and preventing excessive public expenditure.
The approved adjustments for 2026 appear to be a necessary reform to address wage disparities and adapt to inflationary pressures affecting public servants. The President's actions have reignited discussions around public sector compensation and the importance of maintaining financial discipline in government payroll, especially as Brazil navigates a complex economic landscape post-pandemic. The implications of these decisions will be closely monitored as public sentiment, particularly among federal employees, may shift in response to the government's fiscal approach and its impact on service delivery.
