Supreme Court Justice Flávio Dino ordered the suspension of extra benefits known as penduricalhos across Brazil's three branches of government, with a 60-day review period. The ruling aims to curb supersalaries that evade the constitutional cap of R$ 46,366.19. Meanwhile, Congress approved salary hikes and new perks for its staff, costing at least R$ 650 million yearly.
On February 5, 2026, Supreme Court Justice Flávio Dino issued a monocratic ruling suspending extra benefits called penduricalhos in Brazil's executive, legislative, and judicial branches, as well as in states and municipalities. These include gratuities for case accumulation, travel allowances, fuel aid, education support, year-end turkey and panettone aids, often labeled as indemnatory to avoid income tax and the constitutional salary cap of R$ 46,366.19.
Dino set a 60-day deadline for agencies to review and halt payments not backed by federal, state, or municipal law. The ruling stemmed from a lawsuit by the Association of Municipal Prosecutors of the South Central Coastal Region of São Paulo, challenging fees and indemnities exceeding the cap. He criticized the lack of a national law regulating such benefits and directed Congress to draft legislation defining allowable exceptions. "Those benefits not expressly provided by LAW—passed by the National Congress or State Assemblies or Municipal Chambers—must be immediately suspended after the set deadline," Dino stated in the decision.
The full Supreme Court bench will review the ruling on February 25, post-carnival. Meanwhile, that same week, Congress passed bills raising salaries for its staff and introducing new penduricalhos for the Chamber of Deputies and Senate, with an estimated annual cost of at least R$ 650 million. Alison Souza, president of the Sindilegis union, justified it by saying: "We are mimicking the Judiciary and the Public Prosecutor's Office." This congressional move contrasts sharply with Dino's effort, underscoring conflicts between administrative ethics and public sector interests.
