On Monday, the Brazilian Supreme Federal Court (STF) ruled that judiciary bodies and the Public Ministry can only approve additional payments known as 'penduricalhos' if explicitly authorized by federal law. This decision was made by Minister Gilmar Mendes, who outlined that any current payments based on state laws would need to be suspended within 60 days and replaced by appropriately authorized federal frameworks.

Minister Mendes's ruling includes a critical deadline, mandating that all state and federal tribunals cease payment of fringe benefits that are currently justified by state regulations or administrative decisions. This shift aims to ensure that all public payments are compliant with federal law to mitigate excess spending and streamline financial practices within public institutions. The emphasis on federal legislation over state law signifies a significant tightening of fiscal control in public administration.

This decision follows a broader initiative by Minister Flávio Dino, who had previously instructed all branches of government to review and stop payments that exceed the salary cap established for civil servants. The announcement reflects ongoing reforms aimed at enhancing governmental accountability and minimizing unnecessary expenditures in Brazil's public sector as lawmakers continue to address fiscal constraints and public financial management.