Public Servants Wages Distribution: A Ceiling Definition Impact Analysis

IPEA Working Paper No. 1060

Posted: 24 Jan 2005

See all articles by Kaizo I. Beltrao

Kaizo I. Beltrao

National School of Statistics from the Brazilian Institute of Geography and Statistics - ENCE/IBGE

Sonoe S. Pinheiro

Universidade Federal do Rio de Janeiro (UFRJ)

Fernanda Paes Leme

Institute of Applied Economic Research (IPEA) - Directory of Macroeconomic Policy & Studies (DIMAC)

João Luis de Oliveira Mendonça

Institute of Applied Economic Research (IPEA)

Date Written: December 2004

Abstract

The Brazilian social security system, through its most recent reform, established a contributions and benefits ceiling for the public servants. Such measure, if implemented, will diminish public servants contributions. On the other hand, the implementation of this ceiling also requires the previous institution of a pension fund (on the part of the governmental units). This will generate a co-payment of the same units, though limited to 1:1 with the worker's contribution.

It is clear that the financial gains and/or losses resulting from the imposition of a contribution and benefit ceiling does not reflect the whole impact of the reform. However, it was understood that it is highly relevant, since it generates effects immediately after its implementation. In this context, the main objective of the study was to analyze the impact of the ceiling t on public servants social security systems, by each level of government: federal, state and municipal. For each one of these levels, the study considered desegregation by type of competence (executive, legislative and judiciary, whatever the case may be), sex and level of schooling.

Amongst the conclusions of this study, based on Rais data, is the fact that the losses of revenues (and the new expenditure corresponding to the government co-payment to the fund) reflect the differentiations in the wages distribution among government levels, type of competence, schooling level and sex of the civil servant. It was also shown that the losses are inversely proportional to the value of the ceiling.

Keywords: Public Servants, Pensions, Public Accounts, Wages Distribution

JEL Classification: H55, J1

Suggested Citation

Beltrao, Kaizo I. and Pinheiro, Sonoe S. and Leme, Fernanda Paes and de Oliveira Mendonça, João Luis, Public Servants Wages Distribution: A Ceiling Definition Impact Analysis (December 2004). IPEA Working Paper No. 1060, Available at SSRN: https://ssrn.com/abstract=653103

Kaizo I. Beltrao (Contact Author)

National School of Statistics from the Brazilian Institute of Geography and Statistics - ENCE/IBGE ( email )

Rua Andre Cavalcanti, 106
Rio de Janeiro, RJ 20081-1
Brazil
+55 21 224 7677 (Phone)
+55 21 262 6330 (Fax)

Sonoe S. Pinheiro

Universidade Federal do Rio de Janeiro (UFRJ) ( email )

Rua General Canabarro, 706
terreo - Bairro Maracana
20271-201 - Rio de Janeiro, RJ, 23890000
Brazil

Fernanda Paes Leme

Institute of Applied Economic Research (IPEA) - Directory of Macroeconomic Policy & Studies (DIMAC) ( email )

Av. Presidente Antonio Carlos 51
10 Andar Centro
Rio de Janeiro RJ 20020-010
Brazil

João Luis De Oliveira Mendonça

Institute of Applied Economic Research (IPEA) ( email )

Av. Pres. Antonio Carlos , 51 - 17 andar
Rio de Janeiro, RJ, 20020-010
Brazil

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