Rightsizing Brazil’s Public-Sector Wage Bill
IMF Working Papers, October 8, 2018
Source details
- Canonical URL
- Rightsizing Brazil’s Public-Sector Wage Bill
Other formats
Bibliographic details
- Authors: Izabela Karpowicz, Mauricio Soto
- Published: October 8, 2018
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781484374924.001
Key findings
- Brazil’s public-sector wage bill is comparatively high.
- The wage bill "grows inertially" and competes with other spending.
- Public employees earn more than private in comparable professions, raising equity concerns.
- Rightsizing the wage bill could stimulate administrative efficiency and bring more equity.
- Most importantly, reform is necessary to comply with the Federal government expenditure ceiling and the subnational fiscal responsibility rules.
Recommended reform scope and objectives
- A reform should encompass all government levels, and all careers.
- The reform should aim to achieve:
- a real decrease in salaries, and
- lower employment.
Medium-term compensation-structure actions
- Review the compensation structure to:
- rationalize the multitude if wage grids,
- merge allowances into the base wage, and
- align public sector compensation to private wages in low-skilled professions.
Content in this bundle
- Rightsizing Brazil’s Public-Sector Wage Bill, WP/18/225, October 2018