With super salaries and allowances, but without military personnel: see details of the PEC to cut spending

The federal government reported in an extra edition of the Official Gazette of the Union on Monday night (2) that it sent to the National Congress the Proposed Amendment to the Constitution (PEC) which details the spending cutting measures to balance public accounts. The goal is to generate savings of R$327 billion between 2025 and 2030, with an impact of R$70 billion in the next two years.

The proposal foresees changes to the public service remuneration ceiling, to combat so-called “super salaries”, but leaves out changes to military pension rules. The PEC depends on approval in two rounds, both in the Chamber and in the Senate, with the support of three-fifths of parliamentarians in each House. The government has just three weeks before the parliamentary recess to move forward with the process.

Below, the main detailed points of the proposal.

Super salaries in the public service

The PEC amends article 37 of the Constitution to restrict super salaries in public service. Following the change, only compensation installments provided for in a complementary law will be able to exceed the civil service ceiling, currently defined by the salary of a minister of the Federal Supreme Court (STF).

Currently, payments above the ceiling can be made based on ordinary laws, which opens loopholes for benefits that go beyond constitutional limits. Payments that exceed the constitutional ceiling for public service, currently R$44 thousand monthly.

The measure affects the salaries of the entire public sector, mainly the Judiciary and the Public Ministry, which have a series of “hangings” on salaries. The proposal is that these benefits, such as housing assistance and bonuses for those who work in more than one district, are restricted to exceptional situations.

“The idea is, in a single complementary law, to define what is inside and what is outside (the ceiling). Yes, we will start from the bill that is in Congress. And our view is that there are things there that should be inside the ceiling, not outside; of the exceptions that are provided for in that bill”, stated the Minister of Management and Innovation, Esther Dweck, last week.

Limitation of salary bonus

The salary bonus, currently granted to workers who earn up to two minimum wages, will gradually be restricted to those earning up to 1.5 minimum wages. The cut-off value will be corrected by the National Consumer Price Index (INPC) until this level is reached.

The government seeks to reduce spending on the benefit without eliminating it completely, preserving assistance for the lowest income brackets.

DF and Fundeb Constitutional Fund

The text maintains transfers from the DF Constitutional Fund (FCDF), but has not yet detailed how any changes will be made to the transfer format or application criteria.

Furthermore, up to 20% of the Union’s resources allocated to Fundeb may be applied to full-time schools. This change seeks to promote more complete education and meet the growing demand for a more robust educational model.

Continuous Payment Benefit (BPC)

The proposal prohibits income deductions not provided for by law to prove eligibility for the BPC, a benefit aimed at the elderly and people with disabilities in vulnerable situations.

The benefit is one of the federal government’s measures to guarantee financial support for people aged 65 or over or with physical disabilities, and who are in conditions of social vulnerability.

The measure aims to contain spending on benefits granted in court, which often ignore the beneficiaries’ sources of income and increase costs for the Union.

The BPC will also be impacted by the bill sent by the government to Congress on Friday, the 29th, also part of the fiscal package. The PL determines that family income will consider the sum of the monthly income of family members.

Unlinking of Union Revenues (DRU)

The PEC extends the DRU until 2032, maintaining the current percentage of 30%.

The Untying of Union Revenues allows the government to redirect up to 30% of revenues that originally have a fixed destination, such as health and education, to other areas of the budget. The last renewal, in 2022, will cease to be in force at the end of this year.

Budget flexibility

The proposal revokes a paragraph of article 165 of the Constitution that requires the full execution of budgetary programs. In practice, this gives the government more freedom to allocate resources, even if there is no imminent risk of non-compliance with fiscal targets.

Military from abroad

The request made by the military to President Luiz Inácio Lula da Silva has not yet been concluded. One of the open points is the new Social Security rules for members of the Armed Forces.

On Saturday (30), Lula met with the Minister of Defense, José Múcio, and the commanders of the Army, General Tomás Paiva, of the Air Force, Brigadier Marcelo Damasceno, and of the Navy, Admiral Marcos Olsen, to discuss the fiscal package.

At the meeting, they told the Chief Executive that the Armed Forces are in solidarity with the government’s spending cut package, but argued in favor of relief, particularly in the creation of a minimum age of 55 for military personnel to join the ranks. paid reserve.

(With Estadão Content)