Brazil government plans 5% salary bump for public servants from July -sources
By Bernardo Caram
BRASILIA (Reuters) -The Brazilian authorities plans an across-the-board 5% wage improve for public servants beginning in July in an try to finish protests and strikes affecting public companies, three Economic system Ministry sources mentioned on Wednesday.
In response to two of the sources, who requested anonymity to debate personal deliberations, the rise will price the federal authorities round 6 billion reais ($1.28 billion) this yr.
Brazil has a constitutional spending cap so the federal government must lower different bills to extend salaries, as Congress accepted the 2022 price range with only one.7 billion reais for such raises. The federal government had additionally analyzed choices inside that restrict, together with boosting meal vouchers by 400 reais ($85) for all staff, a chance that they largely rejected.
One other different was to favor a couple of classes of civil servant, together with these on the central financial institution and public income service, which have been main noisy protests after President Jair Bolsonaro mentioned earlier this yr that solely civil servants offering public safety could be allowed to obtain raises.
Behind the scenes, Economic system Ministry officers strongly opposed that concept, arguing that privileging a couple of might set off a wave of recent protests demanding extra pricey raises.
“The most important downside was giving raises to 1 class and never others,” mentioned one of many sources acquainted with discussions.
Many public staff haven’t seen their wages rise in 5 years and protests have taken place as double-digit inflation erodes buying energy in Latin America’s largest economic system.
A strike by central financial institution staff is delaying the discharge of financial knowledge, whereas protesting tax auditors have delayed the processing of products arriving in Brazil.
($1 = 4.6899 reais)
(Reporting by Bernardo Caram Writing and extra reporting from Marcela AyresEditing by Brad Haynes and Grant McCool)
