Kátia's report calling for an end to excessive salaries has been approved.
The Senate's Special Committee on Salary Overpayments approved a report by Senator Kátia Abreu (PMDB) proposing a package of 12 measures to end so-called "super salaries"—those above the constitutional ceiling (R$ 33,7); the text also aims to end the cascading effect on remuneration; "Now there is no longer any doubt about what is the ceiling and what is above the ceiling. But, for those who think there is injustice, I recommend that they remember that, in Brazil, the minimum wage is R$ 880. That is injustice," she stated; the text is scheduled for a plenary vote on December 13th and, if approved, will proceed to the Chamber of Deputies for consideration.
Tocantins 247 - The Special Committee on Excess Salaries approved this Wednesday (7) a report by Senator Kátia Abreu proposing a package of 12 measures to put an end to so-called super salaries – those above the constitutional ceiling (currently at R$ 33,7). The text also aims to end the cascading effect on remuneration. In the report, the senator proposes three bills, recommends the approval of Constitutional Amendment Proposal (PEC) 62/2015 (which prohibits the cascading effect) and makes suggestions to the Three Branches of Government and the Senate Board so that the constitutional ceiling is effectively complied with. The text is scheduled to go to a plenary vote on December 13 and, if approved, will go to the Chamber of Deputies for consideration.
Among the main measures is the Bill to regulate which benefits (such as allowances, bonuses, and assistance) must be subject to the ceiling – that is, they cannot exceed the limit of R$ 33,7 – and which can be calculated above that, that is, they are outside the ceiling. “Now there is no longer any doubt about what is the ceiling and what is outside the ceiling. But, for those who think there is injustice, I recommend that they remember that, in Brazil, the minimum wage is R$ 880. That is injustice,” stated the senator.
Extra ceiling
The report considers benefits beyond the salary cap only those that are compensatory in nature, meaning they are not incorporated into remuneration nor generate an increase in assets, such as per diem and travel expenses; vacation pay; seniority bonus; meal allowance, among others. (See the complete table below). “The objective must clearly be to reimburse the employee for expenses incurred in the performance of their duties, and not to increase their salary,” explained Kátia Abreu.
However, even though they are outside the salary cap, some of these benefits will only be granted if there is accountability and proof of expense. These include housing allowance in cases of change of residence due to official duties and funeral allowance, when granted in the form of reimbursement.
Ceiling
All other bonuses and benefits granted without proof of expense must comply with the salary limit stipulated in the Constitution, such as housing allowance; education allowance; medical and dental assistance; representation allowances and cost-of-living allowance.
Specifically regarding housing allowance, it may exceed the limit if the expense is proven; that is, the employee will have to present monthly proof of rent payment to receive the benefit as compensation. The intention is to prevent people from pocketing the allowance even if they own their own home.
"In our proposal, we made it very clear that the employee can only receive above the salary cap if they present proof of rent payment and if they, their spouse, and their minor children do not own a home in their place of residence," the senator emphasized.
The salary cap should also include the accumulation of functions, which occurs when a public servant holds two public positions or receives, in addition to their salary, retirement benefits or a pension. The exception, based on the Constitution, is for judges or prosecutors who also work as professors at public institutions.
Cascade effect
The senator's report also proposes measures to end the automatic linking of salaries, the so-called cascading effect. Kátia Abreu presented a substitute amendment to Constitutional Amendment Proposal (PEC) 62/2015, authored by Senator Gleisi Hoffmann, which prohibits the cascading effect in all branches of government.
According to the proposal, salary increases for the Judiciary in the states can only occur if the local Legislative Assembly approves the adjustment by law. The measure aims to decouple salary changes for Supreme Court justices from the salaries of other judges, a practice that has been causing financial losses in the states.
In addition to approving PEC 62, the committee suggests a series of legal procedures that could be taken by the Supreme Federal Court and other judicial institutions, given the extensive case law on the subject.
“In a harmonious manner, the president of the Supreme Federal Court, Cármen Lúcia, and the other presidents of the superior courts made themselves available to correct these distortions,” stated Kátia Abreu. “With the proposed constitutional amendment, no one will be able to have cascading increases. This applies to the entire country,” she added.