By The Rio Times | Created at 2026-07-24 10:31:58 | Updated at 2026-08-06 00:51:03
1 week ago
Daily Brief
The morning intel from across Latin America. Free.
By subscribing you agree to our privacy policy. We never share your email.
Politics
Key Facts
—The ruling. STF Justice Flávio Dino issued an injunction suspending penduricalhos, above-ceiling salary top-ups, across the Executive, Legislative and Judiciary.
—The reach. It applies at the municipal, state and federal levels.
—The ceiling. Brazil caps public pay at about R$46,366 (US$9,090) a month.
—The trigger. It followed a congressional move to approve pay plans that could push salaries above the cap.
—The next step. The full Supreme Court is set to review the decision on July 25, and Congress has 60 days to define which payments are exempt.
A Brazilian Supreme Court justice has moved to slam the lid on public salaries that top the legal ceiling. The Flávio Dino penduricalhos ruling suspends above-cap pay perks across all three branches of government.
One-stop reference
Company Intelligence
Every listed company in Latin America — financials, ownership and structure for 1,450+ companies across 26 exchanges, in one place.
Brazil sets a constitutional ceiling on public-sector pay, but over the years officials have collected a range of extra payments on top of their salaries. Critics call them penduricalhos, roughly danglers, and say they quietly bust the cap.
Now a Supreme Court justice has ordered them frozen.
What Dino Decided
In an injunction, Justice Flávio Dino suspended payments above the constitutional ceiling across all three branches of government and all levels of the federation.
Dino argued that the penduricalhos, though presented as indemnity payments, in practice work as salary add-ons that circumvent the ceiling, currently about R$46,366 (US$9,090) a month.
Why Now
The decision came right after Congress advanced career and pay plans, particularly in the Chamber of Deputies, that would open the way to remuneration above the cap.
Supporters of those payments argue that many are legitimate reimbursements for real expenses, not disguised raises, and that Congress has the authority to define them.
What Happens Next
Dino ordered Congress to regulate which indemnity payments may genuinely be excepted from the ceiling, setting a 60-day deadline for the branches to act. The full court is due to review his decision on July 25.
Until then, the suspension stands, freezing a practice that has long inflated top public-sector pay.
Why It Matters
So-called supersalários are a politically charged issue in Brazil, where they collide with public frustration over inequality and strained budgets.
How the full court rules, and how Congress responds, will decide whether the cap becomes a real limit or stays a line that many manage to cross.
Frequently Asked Questions
What did Justice Dino rule?
STF Justice Flávio Dino issued an injunction suspending penduricalhos, above-ceiling salary top-ups, across the Executive, Legislative and Judiciary at all levels of government.
What are penduricalhos?
They are extra payments, often labeled as indemnities, that public officials receive on top of their salaries. Critics say they function as raises that circumvent Brazil’s constitutional pay ceiling of about R$46,366 (US$9,090) a month.
What happens next?
Congress has 60 days to define which payments may be exempt from the ceiling, and the full Supreme Court is set to review Dino’s decision on July 25.
Sources
- JOTA – Dino suspende penduricalhos dos Três Poderes para cumprimento do teto constitucional
- STF Notícias – STF suspende penduricalhos no serviço público e limita remuneração ao teto constitucional
Connected Coverage
The Rio Times · Power Map
See who really holds power in Latin America
Click to open the Power Map →
