BRASILIA (Reuters) – The Brazilian government plans an across-the-board 5% salary increase for public servants starting in July, in an effort to end protests and strikes affecting public services, two Economy Ministry sources said on Wednesday.
According to one of the sources, who requested anonymity to discuss private deliberations, the move will cost the federal government around 6 billion reais ($1.28 billion) this year. Due to a constitutional spending cap, the government will have to cut other expenses to increase salaries.
($1 = 4.6899 reais)
(Reporting by Bernardo Caram; Writing by Marcela Ayres; Editing by Brad Haynes)
