Brazil’s Supreme Court Tightens Ban on ‘Penduricalhos’ and Outlaws Pay Workarounds

Overview

• Four Supreme Court ministers issued coordinated orders on Friday that forbid new allowances, block reclassifications and other maneuvers used to inflate pay, and require every judge and prosecutor to have a single, transparent payslip.
• The Court also published the full ruling on Friday, making its March decision official and opening the door for associations that represent affected members to file appeals.
• Under the framework set in March, only a short list of indemnities is allowed and their total cannot exceed 35% of the constitutional salary cap, with the National Justice Council and the National Prosecutors’ Council tasked to regulate how payments are implemented.
• Presidents of courts and prosecution offices now face criminal, civil, and administrative liability for unauthorized extras, and all covered bodies must post monthly pay with each line item or risk penalties for mismatches with actual deposits.
• Enforcement is already contested as some bodies tried to broaden benefits or reclassify units after March, while the Military Superior Court said its April resolutions follow the STF and CNJ/CNMP guidance, signaling disputes that may continue as oversight tightens.