Brazil's Supreme Court Strikes Down Mato Grosso Payroll SuspensionIn a unanimous decision, Brazil's Supremo Tribunal Federal (STF) has declared unconstitutional the measures adopted by the government of Mato Grosso in 2025 that suspended consigned credit contracts and other payroll deductions for public servants.
The ruling was issued in the judgment of Ação Direta de Inconstitucionalidade (ADI) 7900 and Arguição de Descumprimento de Preceito Fundamental (ADPF) 1306. The proceedings concluded on April 28 during the virtual plenary session.
According to the court, the state-level measures overstepped their authority. The decision formally invalidates the suspension of these financial instruments, which are commonly used by public employees for loans and other obligations.
It is noted that the contested norms had already been suspended by an injunction from the rapporteur, Minister André Mendonça, prior to the final judgment. The STF's final decision now permanently settles the matter.