Brazil Top Court Orders Seven State Tribunals to Suspend and Claw Back Judicial Pay Top-Ups

By The Rio Times | Created at 2026-08-12 15:56:44 | Updated at 2026-08-12 19:58:35 4 hours ago

Brazil · Justice

Key Facts

  • Order date STF justices acted on 12 August 2026.
  • Affected courts TJDFT and six state courts (Goiás, Maranhão, Paraná, Rio de Janeiro, Rio Grande do Norte, Rondônia).
  • Suspension Courts must immediately halt payments exceeding STF ceiling or unauthorized by March 2026 ruling.
  • Deadline Court presidents must report suspension and clawback measures within five days.
  • Audit scope CNJ found 59 of 63 courts had inconsistent calculations of time-of-service payments.
  • Retroactive batch First audited batch totaled R$ 1.1 billion (US$ 216 million) for 782 judges.
  • Large balances 53 magistrates had balances above R$ 3 million (US$ 589,000).

An audit found only four of 63 courts checked their math on contested extra payments. Now the Supreme Court steps in.

 STF justices Alexandre de Moraes and Flávio Dino in session.A courtroom. Brazil’s top court ordered seven state tribunals to suspend and claw back judicial pay top-ups. (Photo: Harrison Keely, CC BY 4.0, Wikimedia Commons.)

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.

Browse the directory →

penduricalhos: Brazil’s Supreme Court justices Alexandre de Moraes and Flávio Dino on 12 August ordered seven state courts to suspend judicial pay top-ups and recover excess amounts. According to multiple reports.

judicial pay top-ups: penduricalhos: Order Targets Seven Courts

The order applies to the Federal District’s Court of Justice (TJDFT) and the state courts of Goiás, Maranhão, Paraná. Rio de Janeiro, Rio Grande do Norte, and Rondônia, as reported by Agência Estado and O Tempo.

Those courts must immediately suspend any indemnity-style payments that exceed the ceiling authorized by the STF in March 2026 or that were not expressly approved. According to the reports.

The decision, issued in the context of a complaint filed by the National Justice Council (CNJ). Marks a significant escalation in the ongoing effort to regulate judicial compensation across the country.

The STF’s action follows a broader investigation into what are known as ‘penduricalhos’. Supplementary payments that have accumulated over years in many tribunals, often without clear legal basis.

The order specifically names the seven tribunals. Which were singled out after the CNJ audit indicated they had not corrected their payment practices despite earlier warnings, according to Estadão.

The justices also emphasized that the suspension is not a sanction but a precautionary measure to prevent further irregular disbursements while the full audit is completed. The reports said.

Compliance and Clawback Requirements

The presidents of the affected courts must submit proof of suspension and repayment measures to the STF within five days. The reports said.

Courts must also identify magistrates who received irregular amounts and begin clawing back sums above the cap, according to the same sources. The order specifically requires each court to present a detailed plan for recovering the outstanding values.

Including the number of judges affected and the total amount to be returned. Failure to comply with the order could result in further legal consequences, including potential penalties against the court presidents, the reports indicated.

In addition to the five-day deadline, courts must provide a timeline for the recoupment process. Ensuring that recovery begins within a reasonable period, as reported by O Globo.

The CNJ will monitor the implementation of these measures and may conduct follow-up inspections if the tribunals fail to show progress. According to the same outlet.

Audit Findings on Pay Top-Ups

The trigger was an audit by the National Justice Council’s Corregedoria (CNJ) that found 59 of 63 courts had inconsistent calculations for additional-by-time-of-service payments. Leaving only four with validated accounts.

The four validated courts were the Superior Court of Justice (STJ), TJDFT, Espírito Santo’s court (TJES). And the Third Regional Federal Court (TRF-3), according to O Globo and TV Sim Brasília.

The audit, which began in 2025, examined the legality of payments retroactively granted for time in service. A practice that has been widely criticized as a way to bypass salary caps.

In many cases, the courts failed to properly document the legal basis for the payments or applied different calculation methods. Leading to inconsistencies across the judiciary.

The CNJ’s Corregedoria has been reviewing the payrolls and documentation of all 63 courts since 2025. With a focus on payments made under the guise of indemnities, O Tempo reported.

Among the most common irregularities were retroactive payments for time in service that were calculated using different formulas. Sometimes exceeding the constitutional cap by more than double, according to Metrópoles.

Scale of Retroactive Payments

The first audited batch of potential retroactive payments totaled R$ 1.1 billion (US$ 216 million) to 782 magistrates, according to O Globo. In that batch, the largest single balance was R$ 3.9 million (US$ 766,000); 53 magistrates had balances above R$ 3 million (US$ 589,000).

And 105 were in the R$ 2 million (US$ 393,000) range, the report said. The total value of all potential irregular payments across all 63 courts is still being calculated.

But preliminary figures suggest it could exceed R$ 6 billion (US$ 1.18 billion), according to Metrópoles. The CNJ’s audit is ongoing, with additional batches of payments expected to be reviewed in the coming months.

According to the same outlet. In the first batch, 782 magistrates received payments that are now under review.

But the CNJ has not yet disclosed how many of those are subject to clawback. As the investigation is ongoing, Agência Estado noted.

The R$ 6 billion estimate is preliminary and could change as more data is analyzed. But it already exceeds the annual budget of many state courts, highlighting the fiscal impact of these practices, Metrópoles added.

Examples of Excessive Payments

According to O Tempo, one Maranhão appeals court judge received R$ 3,265,669.19 (US$ 641,000) in rescissory amounts, paid in 12 monthly installments. In Rio de Janeiro, the audit found at least 30 judges with retroactive balances exceeding R$ 1 million (US$ 196,000).

According to Agência Estado. The Maranhão court has been a focus of particular scrutiny due to the high volume of payments made in short periods.

Raising questions about the internal controls of the tribunal. In Goiás, the audit identified payments made to judges who had retired years earlier.

Suggesting that the practice was not limited to active magistrates, O Tempo reported. The São Paulo court, though not in the order, also showed significant irregular balances.

But the STF limited the immediate action to the seven courts with the most severe findings, according to Estadão.

Background on the Pay Cap

The STF’s March 2026 ruling set a ceiling of 35% of salary for one category of allowed indemnities and another 35% for other authorized indemnities. For a combined maximum of 70% of the base subsídio, according to reports.

The current federal judicial remuneration ceiling is R$ 46,366.19 (US$ 9,110), as reported by Estadão. The ruling was a response to widespread practices in which courts granted additional payments beyond the constitutional salary cap for judges.

The cap applies to the total monthly compensation, including salary and all indemnities. Ensuring that no judge receives more than the justices of the STF.

The term ‘penduricalhos’ has become a central issue in discussions about judicial spending. With critics arguing that these add-ons create significant fiscal burdens and inequality within the justice system.

The CNJ has been under pressure to address the issue. Especially after reports of judges earning far more than the official salary through these legal loopholes.

The March 2026 ruling specifically defined which indemnities are allowed and set the percentage caps. But the audit showed that many courts did not implement these limits correctly, leading to the current order, O Globo noted.

The STF’s decision is part of a broader effort to standardize judicial compensation and reduce disparities between different courts. Which have been a recurring issue in the justice system, according to Agência Estado.

Frequently Asked Questions

What are ‘penduricalhos’?

Penduricalhos are extra payments or benefits added to a judge’s salary, such as indemnities for time in service or retroactive adjustments. These add-ons have been subject to legal limits and scrutiny.

Which courts were affected by the order?

The order applied to the TJDFT and the state courts of Goiás, Maranhão, Paraná, Rio de Janeiro. Rio Grande do Norte, and Rondônia, as reported by Agência Estado and O Tempo.

What is the deadline for the courts to comply?

The presidents of the affected courts must send proof of suspension and clawback measures to the STF within five days of the order. According to the reports.

How much money is involved in the retroactive payments?

The first audited batch of retroactive payments totaled R$ 1.1 billion (US$ 216 million) to 782 judges, according to O Globo. Individual balances in that batch ranged up to R$ 3.9 million (US$ 766,000).

Sources: Agência Estado (UOL), O Tempo, O Globo, Metrópoles, Estadão, TV Sim Brasília

Read Entire Article