Ensuring Fair Compensations for Federal Public Servants
Recently, the Chamber of Deputies approved Provisional Measure 1170/23, a significant step towards ensuring fair compensations for federal public servants. This measure grants a 9% readjustment to all public servants within the Executive Branch, local authorities, and foundations. The approval also includes retirees and pensioners who are entitled to parity. However, the measure must still be voted on by the Senate before it can take effect and bring much-needed relief to these hardworking individuals.
Background and Implications
The approved increase in compensations will take effect on May 1, 2023, with the corrected wages beginning to be paid in June. The need for this readjustment arose after President Lula sanctioned Law 14,563/23, which included a complement in the Federal Budget to address the issue. This readjustment agreement is the result of extensive negotiations between the government and over 100 entities representing public servants.
According to the Executive, this correction will benefit more than 1.1 million recipients, including 520,000 active civil servants, 13,600 public employees, 450,000 retirees, and 167,000 pensioners. The estimated cost for implementing the readjustment in fiscal year 2023 is approximately R$ 9.62 billion, with annual expenses projected to reach R$ 13.82 billion starting the following year.
Improving Benefits and Subsidies
Alongside the compensations readjustment, another positive outcome of the negotiations was a significant increase in the food subsidy. The negotiators agreed on raising the food allowance by 43%, from R$ 458 to R$ 658 per month. This change, however, did not require a legislative process. Instead, the Ministry of Management and Innovation in Public Services issued Ordinance 977/23 to implement the increased subsidy.
Additionally, the negotiations resulted in the introduction of changes within the Companhia de Desenvolvimento do Vale do São Francisco (Codevasf). These changes include expanding the board of directors from three members to four, aiming to enhance the company’s governance and decision-making processes.
Payroll Loans and Amnestied Beneficiaries
One aspect that generated considerable discussion and debate was the potential increase in the assignable margin of federal employees for payroll loans. The proposed amendment suggested raising the total assignable margin from 35% to 45% of the salary. The intention was to provide more financial flexibility for employees, with 10% of the margin still reserved for mandatory use on payroll credit cards and benefit cards.
Furthermore, an agreement among party leaders allowed political amnesty beneficiaries who receive monthly economic compensation to choose to apply this remuneration towards payroll loans. However, the segment addressing this specific change was excluded from the approved text. Instead, it will be processed as a separate bill sent by the Executive.
Supporting the Public Servants
Alice Portugal, the deputy who served as the rapporteur for this provisional measure, emphasized the importance of this readjustment for a category of public servants who have faced significant wage losses in recent years. She stated that this proposal opens the door for renewed dialogue with public servants, as negotiation tables and debates on working conditions and salary adjustments have been absent since 2017.
It is crucial to highlight that the Senate must vote on this measure by Thursday (24) to ensure its validity and prevent the readjustment from being suspended. Failure to vote on time would delay the implementation of fairer compensations for federal public servants.
The Path Ahead
Although not all proposed changes were included in the final text, the amendments that were not accepted will be further discussed with the Minister of Management and Innovation in Public Services, Esther Dweck. These discussions will serve as negotiating guidelines with the category unions, offering an opportunity to address specific concerns and issues raised during the negotiations.
Various representatives voiced their opinions on the readjustment. Deputy Lindbergh Farias emphasized that it represents a step towards valuing the public service, countering the wage reduction experienced during the past four years. On the other hand, Representative Kim Kataguiri expressed his dissent, urging for equal pay in the public service to ensure fairness and equity.
Conclusion
The approval of Provisional Measure 1170/23 by the Chamber of Deputies marks a significant milestone in the journey towards ensuring fair compensations for federal public servants. This readjustment acknowledges the accumulated losses of 34% faced by these individuals over the past four years. It signifies a restart of dialogue and negotiations, providing an opportunity to address concerns and improve working conditions in the public service sector.
The passage of this measure in the Senate is essential to implement the readjustment promptly. It is crucial for the government and lawmakers to prioritize this issue and prioritize the well-being of federal public servants. Their efforts and dedication deserve fair and just compensation.
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The Chamber of Deputies approved this Tuesday (22) Provisional Measure 1170/23, which grants a 9% readjustment to all federal public servants of the Executive Branch, local authorities and foundations, including retirees and pensioners with the right to parity. The deputy will be sent to the Senate.
The increase takes effect on May 1, 2023, and the corrected wages began to be paid in June. The matter was approved with the deputy of the deputy Alice Portugal (PCdoB-BA), rapporteur of the deputy in the mixed commission.
The MP was drawn up after the sanction, by President Lula, of Law 14,563/23, which included in the Federal Budget a complement for the granting of readjustment.
The recomposition by this index resulted in an agreement between the government and more than 100 entities representing public servants at the permanent negotiation table, which had been suspended since 2016 and was resumed during the current government.
According to the Executive, the correction will reach more than 1.1 million beneficiaries, of which 520,000 active civil servants, 13,600 public employees, 450,000 retirees and 167,000 pensioners. The cost will be around R$ 9.62 billion for fiscal year 2023 and R$ 13.82 billion per year starting next year.
food allowance
Another point resulting from the negotiation was the increase in the food subsidy by 43%, from R$ 458 to R$ 658 per month.
However, for the increase in aid, it was enough to issue Ordinance 977/23, from the Ministry of Management and Innovation in Public Services. The last year in which there was a readjustment of these aids was in 2016.
codevasf
One of the changes introduced in the text creates one more board of directors in the Companhia de Desenvolvimento do Vale do São Francisco (Codevasf), which goes from three to four.
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payroll loans
However, another change that the rapporteur had included was excluded from the text through the approval of a highlight and will be processed in the form of a bill to be sent by the Executive.
This section proposed expanding the assignable margin of federal employees, from a total of 35% to 45% of salary for contracting loans. The idea was to increase the margin for the free option, since 10% is mandatory for the use of payroll credit cards and payroll benefit cards.
amnestied
After an agreement between party leaders, the text modified Law 10,559/02 to allow political amnesty beneficiaries who receive monthly economic compensation to choose to use this remuneration to request payroll loans. This remuneration must be compensatory in nature and be received permanently and continuously.
server rating
Alice Portugal highlighted that the MP guarantees a salary adjustment of 9% for a category that has accumulated losses of 34% in the last four years. “This proposal reopens the time for dialogue with the public servants of our country. Since 2017 there have been no negotiation tables or debates on working conditions, much less on salary adjustments,” she said.
He recalled that the proposal must still be voted on by the Senate until Thursday (24) or it could lose its validity. “If they don’t vote, the readjustment will be suspended,” he warned.
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The deputy said that the changes that were not accepted in the MP will be discussed again by the Minister of Management and Innovation in Public Services, Esther Dweck. “The amendments that were not accepted became negotiating guidelines with the category unions,” she said.
Deputy Lindbergh Farias (PT-RJ) stressed that the readjustment consecrates the policy of valorization of the public service. “In the four years of Bolsonaro’s government there was a reduction in wages due to the lack of inflationary recovery. Now we have made a pact and a negotiation for readjustments, ”he explained.
Representative Kim Kataguiri (União-SP) announced a vote against the representative because, in his opinion, there should be equal pay in the public service. “The federal public servant earns on average twice as much as a municipal servant for performing the same functions,” he criticized.
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