Brazil's Supremo Tribunal Federal (STF) decided Tuesday to allow the payment of certain extra judicial benefits under more restrictive rules [1].
The ruling attempts to balance the financial rights of magistrates with public criticism regarding excessive remuneration in the judiciary. By limiting which "penduricalhos" — or extra indemnity payments — can be converted to cash, the court seeks to curb perceived excesses while preserving essential benefits [1], [2].
Following a vote by Ministra Cármen Lúcia, the court established a clear divide between prohibited and permitted payments [1]. The STF maintained the prohibition of food allowances, pre-school assistance, and childcare benefits [1], [2]. These specific allowances remain banned from being converted into cash payments for judges.
However, the court ruled that other accumulated benefits may be paid out. This includes payments for vacations, premium licenses, and on-call duties that were accumulated prior to the judgment [1], [2]. These specific items can now be converted into monetary compensation.
The decision comes as part of a broader effort to adjust the rules governing how magistrates receive extra funds [2]. The court focused on identifying which benefits are considered essential versus those that contribute to remuneration levels beyond the constitutional ceiling [1].
The final decision was reached on June 30, 2026 [1].
“The STF decided to liberate the payment of 'penduricalhos' to judges, however in a more restricted manner.”
This ruling reflects an ongoing tension in Brazil between the judicial branch's autonomy to set its benefits and the public demand for fiscal austerity. By allowing the payout of accumulated leave and on-call duties while blocking childcare and food subsidies, the STF is attempting to distinguish between earned deferred compensation and recurring monthly subsidies that inflate judicial salaries.
