Brazil Moves to Raise MEI Revenue Ceiling to Bolster Small Entrepreneurs
Brazil is set to increase the MEI annual revenue ceiling from R$81,000 to R$140,000 by 2028, supporting 17 million microentrepreneurs with improved financial and social benefits.
- • The MEI revenue ceiling will rise from R$81,000 to R$110,000 in 2027 and R$140,000 in 2028.
- • The update allows MEIs to hire up to two employees, doubling the previous limit.
- • The MEI program currently supports around 17 million Brazilians, facilitating social security and credit access.
- • Key stakeholders emphasize the importance of small businesses and women entrepreneurs in Brazil's economy.
Key details
Brazilian authorities are advancing plans to update the Microempreendedor Individual (MEI) annual revenue ceiling, aiming to strengthen the country’s small business sector. At a session in the Câmara dos Deputados on International Day of Micro, Small and Medium Enterprises, key government and business leaders highlighted the urgent need to raise the current MEI revenue limit, which stands at R$ 81,000.
Minister of Entrepreneurship Paulo Henrique Pereira advocated for a phased increase to R$ 110,000 in 2027 and R$ 140,000 in 2028. Pereira emphasized that this adjustment would enable approximately 17 million microentrepreneurs to grow their businesses without losing access to simplified taxation, social security benefits, and credit opportunities. Additionally, the proposed reforms would double the allowed number of employees MEIs can hire from one to two, while including provisions for temporary replacements in cases of legal absences.
The session also featured voices from Sebrae, parliamentary fronts, and business organizations who underscored the pivotal role of small businesses in Brazil's economy. Margarete Coelho, Sebrae’s director of Administration and Finance, called small and micro enterprises “the engine that drives Brazil’s economy.” Jorge Goetten, president of the Parliamentary Front for Micro and Small Enterprises, voiced strong support for the proposed revenue ceiling increases. Ana Claudia Cotait, president of the National Council of Women Entrepreneurs and Culture, highlighted the critical contributions of women-led enterprises to economic stability and social inclusion.
Furthermore, Ivo Dall’Acqua Júnior, president of FecomercioSP, advocated updates to the Simples Nacional tax regime to better serve small entrepreneurs, underscoring their key role in job creation. The proposals reflect a commitment by President Lula’s government to modernize microenterprise policies without raising taxes, balancing economic growth with fiscal sustainability.
This legislative push to revise the MEI framework aims to formalize and boost small business activity in Brazil, supporting entrepreneurs nationwide while ensuring stable economic development.
This article was translated and synthesized from Brazilian sources, providing English-speaking readers with local perspectives.
