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Rightsizing Brazil's Public-Sector Wage Bill [electronic resource] / Izabela Karpowicz.

By: Karpowicz, Izabela.
Contributor(s): Soto, Mauricio.
Material type: materialTypeLabelBookSeries: IMF Working Papers; Working Paper: No. 18/225Publisher: Washington, D.C. : International Monetary Fund, 2018Description: 1 online resource (24 p.).ISBN: 1484374924 :.Subject(s): Compensation Packages | General | State And Local Government: Other Expenditure Categories | Wage Level And Structure | Western HemisphereAdditional physical formats: Print Version:: Rightsizing Brazil's Public-Sector Wage BillOnline resources: IMF e-Library | IMF Book Store Abstract: 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.
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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.

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