STF Forms Majority to Allow Limited Payouts of 'Penduricalhos'

Overview

• The Supreme Court reached a 6–0 majority in the virtual session to permit cash conversion and retroactive payment of certain indemnities that were acquired before March 2026.
• Penduricalhos are extra indemnity payments that can push judges' and prosecutors' pay above the constitutional ceiling, and the Court limited restored sums to a ceiling equal to 35% of indemnity pay.
• The decision immediately recognizes a Parcela de Valorização por Tempo de Antiguidade (PVTAC) of 5% every five years up to 35%, including rules on who may combine it with older quinquennial-style payments.
• The Court ordered the National Council of Justice (CNJ) to audit and deliver a list of legally paid benefits within 30 days before any suspended retroactive disbursements can be released, and left final referendums to the full plenary.
• The ruling keeps core prohibitions — including bans on auxílio‑alimentação, pré‑escolar and creche paid as penduricalhos — limits conversion of plantões to exceptional, presencial payments up to 30 days per year, and may still change as four ministers have yet to vote.