## Rightsizing Brazil’s Public-Sector Wage Bill

_IMF Working Papers, October 8, 2018_

## Source details

**Canonical URL:** [Rightsizing Brazil’s Public-Sector Wage Bill](https://www.imf.org/en/publications/wp/issues/2018/10/08/rightsizing-brazils-public-sector-wage-bill-46194)

## Other formats

- [Markdown version](/en/publications/wp/issues/2018/10/08/rightsizing-brazils-public-sector-wage-bill-46194/index.md)
- [Structured JSON version](/en/publications/wp/issues/2018/10/08/rightsizing-brazils-public-sector-wage-bill-46194/index.json)
- [Bundle manifest](/en/publications/wp/issues/2018/10/08/rightsizing-brazils-public-sector-wage-bill-46194/bundle-manifest.json)

## Bibliographic details
- Authors: Izabela Karpowicz, Mauricio Soto
- Published: October 8, 2018
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781484374924.001

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### 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.

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## Content in this bundle

- **Rightsizing Brazil’s Public-Sector Wage Bill, WP/18/225, October 2018**
  - [Rightsizing Brazil’s Public-Sector Wage Bill, WP/18/225, October 2018 (Markdown version)](/-/media/files/publications/wp/2018/wp18225.pdf.md){rel="alternate" type="text/markdown"}
  - [Rightsizing Brazil’s Public-Sector Wage Bill, WP/18/225, October 2018 (PDF)](/-/media/files/publications/wp/2018/wp18225.pdf){rel="external" type="application/pdf"}

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_Source: https://www.imf.org/en/publications/wp/issues/2018/10/08/rightsizing-brazils-public-sector-wage-bill-46194_