Increase for Executive officials was made possible after Congress approved changes to the spending cap
O Ministry of Management and Innovation in Public Services made official this Tuesday (14.mar.2023) the proposal for a 9% salary increase for public servants of the Executive. The percentage was presented on Friday (10.Mar), during the 3rd round of discussion by the National Permanent Negotiation Board. Here’s the full of the press release (123 KB).
The readjustment for the Executive’s functionalism was made possible after Congress approved changes in the spending ceiling, allowing the government to break the mechanism by about R$ 170 billion so that the president Luiz Inacio Lula da Silva (PT) fulfilled campaign promises. In the 2023 budget allocation, BRL 16.7 billion was reserved for this purpose. The readjustment estimated in the text was 6% this year.
The government’s new proposal projects a linear increase and would take effect from May, but the payment effect would only take place in June. The measure includes an increase of BRL 200 in food allowance, which would go from BRL 458 to BRL 658 – an increase of 43.6% referring to the accumulated variation of inflation since the last readjustment, in 2016.
The government states that the estimated impact of the measures is BRL 11.2 billion and emphasizes that the resources were already foreseen in the 2023 Budget.
The proposal is higher than the 7.8% presented at the 1st meeting, on February 16th, but lower than the 13.5% readjustment that the civil servants asked for in a counter-proposal, on February 24th.
At the beginning of the meeting on Friday (March 10), the Secretary for Personnel Management and Labor Relations, Sérgio Mendonça, offered an 8.4% salary increase. The proposal frustrated the entities that represent functionalism, as found by the Power360.
The representative entities of functionalism are debating with their respective assemblies whether or not to accept the offered readjustment. The National Permanent Negotiating Table was reopened on February 7th.
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