In a significant move, Minister Flávio Dino of the Supreme Federal Court (STF) in Brazil has issued a ruling that prohibits the application or drafting of new legislation that would permit salaries or indemnity payments exceeding the constitutional wage ceiling. This decision builds on his earlier ruling from February 5, where he suspended the so-called "penduricalhos" — additional financial benefits that public officials could claim over their regular salary. In his latest reflection, Dino underscored the importance of avoiding any factual or legal innovations that might complicate decisions exclusively reserved for the STF.

Furthermore, Dino specified that no new claims of entitlement to past payments can be recognized unless they were paid prior to the publication of this latest ruling. This brings clarity to the administrative responsibilities of public institutions across Brazil, which have a period of 60 days to disclose their compensatory and indemnity expenditures, alongside the corresponding legal foundations for these amounts. The emphasis is on transparency and regulatory compliance to ensure equitable financial practices within the public sector.

The decision represents a broader effort to clamp down on excesses and ensure adherence to constitutional limits regarding public remuneration. With the looming constitutional amendment set for 2024, which aims to clarify the circumstances under which indemnity payments can be made, the ruling aligns with a push for more stringent fiscal responsibility within government agencies. It reflects the STF's intention to uphold the rule of law and maintain integrity in public service compensation, potentially impacting how public officials manage their finances in the future.