STF Orders Seven State Courts to Explain Large 'Penduricalhos' Payments

Overview

• The Supreme Court demanded rapid, itemized explanations from seven state tribunals after media reports showed some magistrates received pay above the constitutional ceiling, and ministers warned of removal or other sanctions for noncompliance.
• Most of the notified courts replied in early July that they followed STF and CNJ guidance and said the highest payments came from retirement settlements, cash payment for unused vacation, indemnities and other exceptional items.
• Official CNJ payroll data show at least R$ 722.8 million in extra allowances were paid in May–June 2026, while the courts of São Paulo and Minas Gerais told the CNJ they have R$ 7.6 billion in retroactive claims that now face verification.
• The CNJ’s Corregedoria will audit large retroactive liabilities with a report due in August and the STF has said it will review the audits before allowing further releases or taking enforcement action.
• These events follow a March STF ruling that limited certain indemnities to 35% of the subsidy and left detailed regulation and the treatment of retroactives to the CNJ and later to Congress, forcing courts to apply transitional rules during implementation.