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Rightsizing Brazil’s Public-Sector Wage Bill
by Izabela Karpowicz and Mauricio Soto

Series:Working Paper No. 18/225
ISBN 9781484374924
Code: #WPIEA2018225

Publication year: 2018

Cdn: $27.00; US: $23.50
Language: English
24 pages
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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. Most importantly, however, a reform is necessary to comply with the Federal government expenditure ceiling and the subnational fiscal responsibility rules. A reform should thus encompass all government levels, and all careers, and should aim to achieve a real decrease in salaries and lower employment. In the medium term, a review of the compensation structure should rationalize the multitude if wage grids, merge allowances into the base wage, and align public sector compensation to private wages in low-skilled professions.
Rightsizing Brazil’s Public-Sector Wage Bill
Cdn: $27.00; US: $23.50
International Monetary Fund (IMF) BookID: 123737 Added: 2018.10.8