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Brazil to Propose Phased Rise of MEI Ceiling to About R$130,000 by 2028

Staggered increases are intended to expand formal work while keeping pension and fiscal costs under control.

Overview

  • On Friday, June 19, 2026, Finance Minister Dario Durigan said the government will send a plan to raise the Microempreendedor Individual (MEI) annual revenue limit in stages so it reaches roughly R$130,000 by 2028.
  • The economic team supports allowing MEIs to hire one additional employee, increasing the current permitted hire from one to two.
  • A Chamber special commission is drafting companion changes that would introduce tiered contribution rates tied to revenue and shorten the exclusion-for-nonpayment period from 12 months to two months.
  • Official estimates put the near-term fiscal cost at about R$1–2 billion in 2027–28 and an actuarial liability of roughly R$90 billion in present value over 70 years, which is shaping the phased design.
  • Lawmakers aim to vote before the July 18 recess and the government has ruled out broad revisions to the wider Simples Nacional regime, focusing negotiations narrowly on MEI rules.