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Brazil Moves To Raise MEI Ceiling and Allow Second Hire

A bid to correct long‑standing inflationary erosion of MEI and Simples limits will hinge on negotiated fiscal offsets before the July parliamentary recess.

Overview

  • This week (June 15–17) the federal government told Congress it will present a proposal to raise the Microempreendedor Individual (MEI) revenue limit and to permit MEIs to hire one additional employee.
  • Chamber relator Jorge Goetten has a near‑final report that would lift the MEI ceiling to roughly R$132–134 thousand and recalibrate Simples Nacional bands up to about R$8 million for small companies.
  • The Finance Ministry warns large adjustments would carry material fiscal and social‑security costs, producing sharply different estimates from analysts and lawmakers about the measure’s budget impact.
  • To reduce immediate burdens on small firms, Goetten plans to include mitigation measures such as a two‑year exemption of employer social‑security contributions for new hires tied to the end of the 6x1 work scale.
  • Lawmakers aim to reach agreement and vote the report before the parliamentary recess that begins July 17, with outcomes to shape access to benefits for roughly 17 million MEIs and potential small‑business hiring decisions.