The Brazilian Senate on Wednesday night approved a pay raise for the judiciary with budget-busting implications for governments at all levels. The Senate approved a 16% pay hike for judges and prosecutors. The Chamber of Deputies had already approved the measure, which now goes to President Michel Temer. Aides to Temer said the President has not decided whether to sign or veto the bill. Under current laws, many federal and state employee salaries are linked directly to judicial pay levels.
Economists estimate annual cost to federal and state governments from the pay hike in a range of R$4. 1 billion to R$6 billion. The bill comes at a time of strained government budgets, characterized by many economists as a full-fledged fiscal crisis.
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