Brazil's Supreme Court Reaffirms Absolute Ban on Public Servant BonusesIn a significant move to enforce fiscal discipline, three ministers of Brazil's Supreme Federal Court (STF)—Flávio Dino, Gilmar Mendes, and Alexandre de Moraes—have reiterated an absolute prohibition on the creation, implementation, or payment of any new remunerative or indemnity allowances, commonly known as 'penduricalhos,' for public servants.
The decision was prompted by recent reports indicating that various public agencies were attempting to establish new indemnity payments. The Court's ruling makes it clear that this ban is comprehensive, covering any category of payment, including those created after the Court's original judgment in March 2026.
The only exception to this strict rule is for payments that were expressly authorized in a prior STF decision. This reaffirmation underscores the judiciary's commitment to controlling public expenditure and ensuring compliance with its earlier rulings on public sector compensation.