Brazil’s Congress Voted Itself Tax-Free $13,000 Salaries. The Average Worker Earns $620

Key Points

• Brazil’s Congress took five hours to approve tax-free bonuses that push some staff salaries to R$77,000 (~$13,200) a month — in a country where the average worker earns R$3,613 (~$620) and the constitution caps public pay at R$46,366 (~$7,900).
• An international study found Brazil spends R$20 billion (~$3.4 billion) a year on public salaries above its own legal ceiling — 21 times more than Argentina, the runner-up. Germany has zero such cases.
• Two days after the vote, a Supreme Court justice ordered every government body in the country to review and cut illegal salary add-ons within 60 days. The full court rules on February 25.

Brazil has a rule that no government employee can earn more than a Supreme Court justice — currently R$46,366 (~$7,900) a month. It is written into the constitution. And for decades, the political class has treated it as a suggestion.

The latest episode unfolded on February 3, 2026. Congress returned from recess and, before most Brazilians had finished their afternoon coffee, passed two bills creating a performance bonus of up to 100% of base salary for its own staff.

The bills also introduced a scheme where senior employees earn one day of paid leave for every three days worked. Skip the day off, and it converts to cash — tax-free, pension-exempt, and crucially, not counted against the salary cap.

Top congressional staffers can now earn R$77,000 (~$13,200) a month. The chamber president confirmed it on the floor: some staff would out-earn the elected lawmakers they serve.

No fiscal impact study was presented. The vote was symbolic, meaning no individual lawmaker’s position was recorded. The estimated annual cost is R$790 million (~$135 million).

This is not new. Brazil leads the world in above-cap public pay. A University of California, San Diego study found 53,500 Brazilian public servants earning above the legal ceiling, costing R$20 billion (~$3.4 billion) annually.

Judges account for R$11.5 billion (~$2 billion) of that. The trick is always the same: label the money “compensation” rather than “salary,” and the cap vanishes.

Officials have coined names like “turkey allowance” and “Christmas cake bonus” for these extras. Brazilians call them penduricalhos — dangling trinkets.

Court confronts Brazil’s pay privilege system

What makes this moment different is what happened next. On February 5, Supreme Court Justice Flavio Dino issued a nationwide injunction ordering every branch and level of government to suspend salary add-ons without legal basis within 60 days.

He called it the “empire of penduricalhos.” Left and right praised his ruling — including lawmakers who had not opposed the original vote.

The political backdrop is telling. Only the small libertarian NOVO party and left-wing PSOL voted against the bills. President Lula‘s coalition supported them silently, bundled with 20,000 new government jobs the administration wanted.

In an election year, nobody wanted to fight the people who run Congress. Meanwhile, 83% of Brazilians told Datafolha pollsters they want the salary cap enforced. The minimum wage is R$1,621 (~$280) a month.

The gap between the law as written and the law as practiced is not a footnote — it is the story of who the Brazilian state actually serves.

Download full report here.

Related coverage: Brazil’s Morning Call | Ibovespa Holds Near Record as Earnings Season Splits Brazili This is part of The Rio Times’ daily coverage of Brazil affairs and Latin American financial news.