The annual adjustment of the minimum wage for teachers and the limits of cooperative federalism in the sustainability of subnational entities

Abstract

This article analyzes the annual adjustment of the national minimum wage for teachers in light of the limits of cooperative federalism, considering the new educational funding structure established by Constitutional Amendment No. 108/2020 and regulated by Law No. 14,113/2020. The appreciation of teaching, enshrined as a fundamental right by the Federal Constitution, faces tensions within the federative context, especially regarding the financial capacity of subnational entities. Using a qualitative methodology, through normative, jurisprudential, and empirical analysis, the study investigates the impacts of the national wage policy on municipal autonomy, the evolution of judicialization, and the effects of the Treasury's Instruction No. 8/2025 on budgetary execution. Based on case studies and selected empirical data, the article highlights the federative conflicts arising from the implementation of the annual adjustment, emphasizing the need for a balance between the national policy of teacher appreciation and the financial sustainability of federated entities. It concludes that the current regulatory framework imposes significant challenges to federative cooperation and local budget management, requiring a review of coordination mechanisms among government levels.