STF Suspends Retroactive Penduricalhos After Councils Map 694 Cases

Overview

• On March 25th the Supreme Court set a reference salary of R$46,300 and capped additional indemnities and gratifications at specific limits, including a 35% ceiling for certain extra payments.
• The National Council of Justice and the National Council of the Public Prosecutor’s Office reported a preliminary consolidation of 694 retroactive items but said the data lack uniform names, calculation bases and documentation so amounts cannot yet be validated.
• Those councils proposed a phased audit and the issuance of binding norms before any disbursements, and the STF has kept payments frozen while the verification and standardization proceed.
• Associations representing judges and prosecutors have filed challenges asking the Court to raise the reference teto to about R$71,500 by applying IPCA inflation and to loosen the 35% restriction for some allowances.
• Local tribunals have created new rubrics and some magistrates cite a TCU technical opinion to claim they can receive both the old quinquênio (ATS) and the new PVTA, a practice that transparency groups warn raises fiscal risk and increases pressure for Congress to adopt clear law.