Congress enacts PEC of Precatórios this Tuesday

The proposed constitutional amendment that changes the rules governing the payment of court-ordered debts will be enacted this Tuesday, the 9th. Constitutional Amendment Proposal 66/2023 was approved by the Senate last week without changes compared to the text submitted by the Chamber. The enactment is scheduled for 3 p.m. in the Senate plenary.

Precatórios are debts owed by the federal government, states, and municipalities resulting from lawsuits. The Constitutional Amendment (PEC) removes precatórios from the federal government's primary spending limit starting in 2026. It also limits the payment of these debts by states and municipalities and refinances these entities' social security debts to the federal government.

In practice, the measure alleviates the situation for states and municipalities by allowing them to pay legal debts in smaller installments over a longer term. Furthermore, it helps the federal government meet its fiscal target by removing part of these expenses from the spending cap.

The text also makes room in the Budget for a 12 billion reais increase in maternity leave expenses, due to a decision by the Federal Supreme Court (STF).

In 2024, the Supreme Court declared unconstitutional the requirement of a minimum of ten INSS contributions for self-employed workers and those with special insurance to receive maternity pay. Now, with just one contribution, they can access the benefit , following the same criteria as formal workers.