Rightsizing Brazil’s Public-Sector Wage Bill
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Summary:
Brazil’s public-sector wage bill is comparatively high. It grows inertially and competes with other spending. Rightsizing the wage bill could stimulate administrative efficiency and bring more equity into a system where public employees earn more than private in comparable professions. Most importantly, however, a reform is necessary to comply with the Federal government expenditure ceiling and the subnational fiscal responsibility rules. A reform should thus encompass all government levels, and all careers, and should aim to achieve a real decrease in salaries and lower employment. In the medium term, a review of the compensation structure should rationalize the multitude if wage grids, merge allowances into the base wage, and align public sector compensation to private wages in low-skilled professions.
Series:
Working Paper No. 2018/225
Subject:
Employment Expenditure Government wage bill Labor Public sector wages Wage adjustments Wages
English
Publication Date:
October 8, 2018
ISBN/ISSN:
9781484374924/1018-5941
Stock No:
WPIEA2018225
Pages:
24
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