Overview

• Pedro Paulo circulated the finalized text to gather the 171 signatures required to file it, with leaders signaling debate after income‑tax rules and an expected floor vote in November.
• The proposal mandates a unified remuneration table within ten years for each federative entity covering all branches and autonomous bodies.
• From 2027, states and municipalities face annual primary‑spending caps tied to inflation plus a fraction of real revenue gains (50% with a prior primary deficit or 70% otherwise), limited to an extra 2.5 percentage points.
• Public servants would undergo periodic performance evaluations and could receive annual bonuses of up to two monthly remunerations, rising to four for strategic commissioned and trust posts, without counting toward the pay ceiling.
• The package curbs perks by limiting allowances to 10% for those earning at least 90% of the ceiling, ending benefits like >30‑day vacations and licença‑prêmio, and adds measures such as a 20% telework cap and a tiered salary ceiling for municipal leaders.