President Lula Expands Labor Rights for Outsourced Federal Workers in Brazil
President Lula signs decree expanding labor rights for outsourced federal workers, including childcare subsidies and reduced work hours.
- • President Lula signed a decree expanding labor rights for 40,000 outsourced federal workers.
- • New regulations include a childcare reimbursement of up to R$ 526.64 monthly for 14,000 children.
- • Workweek reduced from 44 to 40 hours without salary cut for up to 60,000 workers.
- • Childcare subsidy is mandatory in contracts with exclusive labor dedication and can be applied retroactively.
Key details
On April 13, 2026, President Luiz Inácio Lula da Silva signed a decree to enhance labor rights for at least 40,000 outsourced workers in Brazil's federal administration. This landmark measure introduces key benefits, including a reduction in the workweek from 44 to 40 hours without salary cuts and a childcare reimbursement program.
The childcare subsidy will provide assistance of up to R$ 526.64 per month, benefiting approximately 14,000 children of outsourced workers. This reimbursement will be mandatory in all service contracts aimed at exclusive labor dedication and can be applied retroactively to existing contracts. The reduction in working hours is expected to impact up to 60,000 outsourced workers, extending previous benefits that covered 12 categories of workers.
Speaking at the Palácio do Planalto in Brasília during the signing ceremony, President Lula highlighted the significance of recognizing outsourced employees’ contribution, especially in the wake of the January 8, 2023, anti-democratic attacks. He emphasized, "Ensuring financial support for working mothers and families promotes equality and dignity."
Minister of the General Secretariat of the Presidency, Guilherme Boulos, underscored that these measures seek to benefit all federal workers nationwide. Meanwhile, Esther Dueck, Minister of Management and Innovation in Public Services, expressed concern about Brazil's lack of universal public childcare, underscoring its critical role in enabling workers—particularly women—to perform effectively.
This expansion reflects the government's commitment to improving labor conditions and social support systems for outsourced public workers, aligning their rights more closely with those of federal public servants.
This article was translated and synthesized from Brazilian sources, providing English-speaking readers with local perspectives.
