The federal government’s personnel expenses in the 12 months ending in October totaled R$382.2 billion, registering a real growth of 8% compared to the same period ending in October 2023, already considering the discount for inflation. The value, which includes active civil servants and retirees and pensioners. It is the largest in the historical series of the Personnel Statistical Panel, which began in 2008.
According to the panel, in October there were 1.2 million federal employees, of which 47.1% were active, 32.9% were retired and the rest were linked to pension institutes. In the comparison between the months of October 2022 and 2023, expenses per server had a real increase of 7.7%.
Currently, the lowest salary in the federal public service pay table is R$1,590.73, while the highest is R$33,721.23. In the private sector, the salary reality is very different. The average salary of an employee was R$3,000 in September, according to data from the Brazilian Institute of Geography and Statistics (IBGE), a real increase of 3.3% compared to the same month in 2022.
Despite pressure to cut spending, the government faces challenges in reducing spending. Since May 2023, public accounts have recorded a primary deficit, which corresponds to the negative balance between revenues and expenses, excluding expenditure on interest on public debt.
One of the few statements about possible changes in the civil service came from the Minister of Planning and Budget, Simone Tebet, who criticized “super salaries” in the public sector.
“Salaries above the constitutional limit are not just wasteful; are illegal, unconstitutional and immoral. Whether the cut will be made now or later will depend on conversations with the president and, later, with the National Congress”, she stated on October 15.
The issue of super salaries was also addressed by the Minister of Finance, Fernando Haddad, who, together with Tebet, is working on a plan to structurally contain expenses. However, a bill presented by the government maintains the possibility of paying two compensation amounts, known as “hangings”, without being subject to the constitutional ceiling, which reduces the chances of savings estimated between R$3 billion and R$4 billion , in addition to hindering future administrative reforms. This analysis was carried out by the Livres movement, a think tank defender of economic liberalism.
At the same time, the Ministry of Management is preparing a bill that provides for adjustments of up to 30% for employees in commissioned positions and bonus roles, including direct advisors to ministers and heads of regulatory agencies. This increase has been under discussion since 2023, when the government of President Luiz Inácio Lula da Silva granted a 9% increase for civil servants, without, however, correcting the salaries of those holding commissioned positions.
