Brazil's Congress moves to raise MEI and Simples Nacional revenue caps

The federal government will send a bill to the Chamber of Deputies to lift the annual revenue limit for Microempreendedores Individuais (MEIs) from R$ 81,000 to R$ 130,000 and to permit each MEI to hire at least two employees, up from the current single‑employee ceiling. Minister of Institutional Relations José Guimarães said the change will be “a huge achievement for small entrepreneurs.”

A provisional measure (MP 1.371/2026) was also issued to correct the wording of an existing credit program so that loans for autonomous truck drivers and MEIs are clearly covered, without altering the R$ 2 billion fund guarantee.

The industry association Assimpi submitted a manifesto to President Luiz Inácio Lula da Silva, Finance Minister Dário Durigan and Entrepreneurship Minister Paulo Henrique Rodrigues Pereira, urging support for the reforms. Association president Joseph Couri warned that “companies that only grow to keep up with the cost of living are pushed out of the simplified regime.”

In the Chamber, Deputy Jorge Goetten (Republicanos‑SC) is reporting a complementary bill that would raise the Simples Nacional ceiling from R$ 4.8 million to R$ 8 million, with a possible compromise at R$ 6 million. The proposal, already approved by the Senate, is slated for a vote in early July. Together, the measures aim to update tax thresholds that have not been adjusted for inflation since 2016, reducing premature deregistration of small firms and fostering hiring.