{
  "title": "Rightsizing Brazil’s Public-Sector Wage Bill",
  "publication": "IMF Working Papers, October 8, 2018",
  "sourceUrl": "https://www.imf.org/en/publications/wp/issues/2018/10/08/rightsizing-brazils-public-sector-wage-bill-46194",
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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.",
  "sections": [
    {
      "heading": "Key findings",
      "content": "- Brazil’s public-sector wage bill is comparatively high.\n- The wage bill \"grows inertially\" and competes with other spending.\n- Public employees earn more than private in comparable professions, raising equity concerns.\n- Rightsizing the wage bill could stimulate administrative efficiency and bring more equity.\n- Most importantly, reform is necessary to comply with the Federal government expenditure ceiling and the subnational fiscal responsibility rules."
    },
    {
      "heading": "Recommended reform scope and objectives",
      "content": "- A reform should encompass all government levels, and all careers.\n- The reform should aim to achieve:\n  - a real decrease in salaries, and\n  - lower employment."
    },
    {
      "heading": "Medium-term compensation-structure actions",
      "content": "- Review the compensation structure to:\n  - rationalize the multitude if wage grids,\n  - merge allowances into the base wage, and\n  - align public sector compensation to private wages in low-skilled professions.\n\n---\n\n Content in this bundle\n\n- Rightsizing Brazil’s Public-Sector Wage Bill, WP/18/225, October 2018\n  - Rightsizing Brazil’s Public-Sector Wage Bill, WP/18/225, October 2018 (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - Rightsizing Brazil’s Public-Sector Wage Bill, WP/18/225, October 2018 (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/wp/issues/2018/10/08/rightsizing-brazils-public-sector-wage-bill-46194"
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    "[Markdown version](/en/publications/wp/issues/2018/10/08/rightsizing-brazils-public-sector-wage-bill-46194/index.md)",
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    "Authors: Izabela Karpowicz, Mauricio Soto",
    "Published: October 8, 2018",
    "Series: IMF Working Papers",
    "DOI: https://doi.org/10.5089/9781484374924.001",
    "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.",
    "A reform should encompass all government levels, and all careers.",
    "The reform should aim to achieve:",
    "Review the compensation structure to:",
    "**Rightsizing Brazil’s Public-Sector Wage Bill, WP/18/225, October 2018**"
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