Minister Flávio Dino of Brazil's Supreme Court has taken decisive action to prohibit the issuance of new regulations or laws that would enable public sector salaries to exceed the legally established ceiling. This ceiling is currently set at R$ 46,366. The minister made this pronouncement following a case brought to the Supreme Court by the Association of Municipal Prosecutors from Praia Grande, São Paulo, which raised questions about how certain honors could be categorized under this ceiling limit. Flávio Dino's directive highlights ongoing concerns over financial impropriety in the public sector, where payments that violate the ceiling have been disguised as indemnifications, referred to as 'penduricalhos.'

On February 5, Dino also suspended any additional payments that lacked legal basis. He emphasized that there has been widespread disrespect for the established ceiling, as different entities had sought to evade these limitations through various means. To address this issue, Dino has mandated that the three branches of government undertake a comprehensive review of their payroll systems within 60 days. This move is intended to enforce financial accountability and ensure adherence to the established regulations aimed at curbing excessive salaries in the public sector.

A week following the announcement, various entities including the São Paulo Court of Justice and organizations representing judges, prosecutors, and public defenders have expressed interest in participating in discussions related to the implementation of this directive. This showcases a collective effort to address the complexities of salary enforcement and adherence to the ceiling, further underlining the significance of the Supreme Court's ruling in shaping public sector compensation practices in Brazil.