Rightsizing Brazil’s Public-Sector Wage Bill


Izabela Karpowicz ; Mauricio Soto

Publication Date:

October 8, 2018

Electronic Access:

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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.


Working Paper No. 2018/225



Publication Date:

October 8, 2018



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