Brazilian court decision boosts vacation pay for public servants

A recent STJ decision will increase vacation and 13th-month payments for Brazilian public servants who are eligible to retire but continue working. This ruling will affect the calculation of these benefits. The Superior Court of Justice (STJ) determined that the "abono de permanência," a bonus for staying employed, must be included in the calculation of vacation and 13th-month salaries. This change is expected to increase related government spending by approximately R$200 million annually. The "abono de permanência" is paid to public servants who are eligible to retire but choose to keep working. The STJ's decision clarifies the bonus's nature, impacting how other benefits are calculated and potentially leading to retroactive payments.