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Reducing salaries of public servants to suit staff costs is unconstitutional

06/24/2020

By majority vote, the Plenary of the Brazilian Federal Supreme Court (STF) declared unconstitutional any interpretation of the provisions of the Fiscal Responsibility Law (LRF - Supplementary Law 101/2000) that allows the reduction of public servants' salaries for the adequacy of personnel expenses. In this Wednesday's session (24), the full court concluded the judgment of Direct Unconstitutionality Action (ADI) 2238, filed by the Communist Party of Brazil (PcdoB), the Workers Party (PT) and the Brazilian Socialist Party (PSB).

The provision declared unconstitutional is paragraph 2 of Article 23. The provision provides for the temporary reduction of the working day with the adjustment of salaries to the new workload, if the limits defined by law for personnel expenses in the various spheres of public power are exceeded. For most Justices, the possibility of reduction undermines the principle of non-reducibility of wages.

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