Debate on the adequacy of PEC 38/2025 administrative reform

Two experts diverge on PEC 38/2025, a proposed administrative reform under consideration in Brazil's Chamber of Deputies. One supports it for promoting efficiency and cost reduction, while the other warns of risks to public service precarization and loss of server rights.

PEC 38/2025, which alters public administration norms to improve governance, management, digital transformation, professionalization, and extinction of privileges, is under consideration in Brazil's Chamber of Deputies after approval in a special commission. Representing the National Federation of Telecommunications and IT Infrastructure (Feninfra), its president argues that the proposal addresses the needs of productive sectors, society, the Legislature, and the government, seeking greater productivity and lower costs. He notes that Brazil spends 3.5% of GDP on public servants, more than most countries, without proportional efficiency, and stresses the need for salary and career plans, performance evaluations, and productivity incentives, including dismissals for poor performance. 'It is urgent to review the structure of the state machinery, whose weight impacts all productive chains,' he states, citing the telecommunications sector with 32,000 companies, 2.1 million jobs, and R$50 billion in annual taxes, amid a 33.27% tax burden on GDP and investments at 17% of GDP, needing 22% for sustained growth.

Conversely, a retired justice from the São Paulo Court of Justice and president of the Association of Public Employees of the State of São Paulo (AFPESP) criticizes the PEC as a reckless project that reduces rights, weakens careers, and opens doors to outsourcing and instability. He highlights the extinction of seniority bonuses, careers with at least 20 categories, prohibition of raises and retroactive payments, rigid personnel expense limits, and the 'temporary civil servant' figure, dismissed after ten years without stability. 'The public contest, which ensures merit, and stability, which preserves the technical independence of servers, are society's defenses,' he argues, warning that the measure will indirectly affect current servers and benefit private sectors seeking to profit from public resources. AFPESP supports the manifesto from the Forum of Server Entities against the plenary vote, advocating for a reform with valorization and dialogue.

The debate reflects tensions between state efficiency and public service protection, in a country where the public machine consumes about 40% of resources, prioritizing areas like health, education, and security.

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Brazilian deputies applauding the overwhelming approval of the Public Security PEC (461-14) in the Chamber of Deputies chamber at night.
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Chamber approves Public Security PEC in two rounds

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Brazil's Chamber of Deputies approved the Public Security Constitutional Amendment Proposal on the night of March 4, 2026, with 461 votes in favor and 14 against in the second round. The text, which provides funding through bets and the pre-salt social fund, heads to the Senate after negotiations that removed a plebiscite on reducing the age of criminal majority. The approval reflects dialogue between the government, the rapporteur, and the House president.

Centrist leaders in Brazil's lower house want to avoid voting on a bill regulating extra perks and supersalaries for public servants unless President Lula's government engages directly. The Supreme Federal Court suspended these benefits and ordered Congress to legislate within 60 days, but the deadline is deemed too short in an election year. The STF plenary is judging the decisions this week.

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Presidents of PL and União Brasil announced efforts to prevent the PEC ending the 6x1 schedule from advancing in the Chamber's Constitution and Justice Committee. They argue a plenary vote would be difficult in an election year. The proposal amends the Constitution to cap the workweek at 36 hours.

In the latest on Chile's record 129-article Public Sector Readjustment Law, submitted last week, Congress approved 36 articles on Wednesday despite backlash over 100+ miscellaneous add-ons. Labor Minister Boccardo defends the measures as essential updates, while critics decry the 'denatured omnibus' bill lacking funding clarity. Average 2.8% salary hike carries US$1.7 billion cost.

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Over six years after the 2019 reform, Brazil's pension deficit keeps rising, according to a Folha de S.Paulo analysis. The combined shortfall of INSS, civil servants, and military jumped from R$ 271.7 billion in 2015 to R$ 442 billion in 2025. The piece argues that further adjustments are essential for fiscal sustainability and intergenerational justice.

STF Minister Gilmar Mendes suspended parts of the 1950 Impeachment Law, restricting impeachment requests for ministers to only the PGR and raising the required Senate quorum. The move prompted an immediate reaction from Senate President Davi Alcolumbre, who defended the Legislature's prerogatives and threatened constitutional changes. The Lula government, through the AGU, requested reconsideration until plenary judgment.

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On Tuesday, Interior Secretary Rosa Icela Rodríguez presented the Plan B electoral reform initiative on President Claudia Sheinbaum's instructions. It aims to cut privileges and spending in electoral bodies and local governments after the original constitutional proposal failed in the Chamber of Deputies. It will be sent to the Senate with PT and PVEM support.

 

 

 

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