Brazil, Unions Sign Deal to Lift Federal Meal Allowance 17.5% to R$1,175 in December

Overview

• The agreement was sealed at the Mesa Nacional de Negociação Permanente and sets the new amount for federal executive-branch workers starting in December 2025.
• An additional recalculation in April 2026 will use IPCA accumulated from December 2025 to April 2026, contingent on the 2026 budget’s approval.
• Per capita health and childcare benefits are slated for April 2026 updates based on IPCA from May 2024 to April 2026, also dependent on budget authorization.
• The Ministry of Management and Innovation framed the move as part of restoring purchasing power for public servants after years of losses.
• The government estimates a R$1.1 billion impact in the 2026 budget proposal, as unions press for broader coverage and stronger adjustments, including for retirees and health plans.