Overview
- President Lula unveiled the package at a Palácio do Planalto ceremony on Tuesday, Oct. 13, signing decrees to open new low‑interest credit lines and launch mechanisms to help microentrepreneurs renegotiate debts.
- The government also sent a complementary bill that would raise the MEI annual revenue ceiling from R$81,000 to R$110,000 in 2027 and to R$140,000 in 2028 while allowing MEIs to hire up to two employees.
- Those statutory changes cannot take effect without votes in the Chamber of Deputies and Congress, and a related bill filed in June has not moved forward in parliamentary debate.
- The announcement is explicitly timed as an electoral appeal in the runup to the Oct. 25 presidential runoff and targets small business owners and autonomous workers after Lula trailed Flávio Bolsonaro in the first round.
- If approved, higher revenue limits and hiring rules could shift how many informal solo entrepreneurs register as MEIs and affect their tax and social‑security obligations, but that outcome depends on Congress and implementation details.