Brazil government studies MEI reforms after end of 6×1 work schedule

The Chamber of Deputies approved a constitutional amendment ending the 6 × 1 work‑day schedule, cutting the weekly workweek from 44 to 40 hours without reducing pay. In response, the federal government is evaluating measures to mitigate impacts on micro‑entrepreneurs (MEIs) and small businesses. Minister Paulo Henrique Pereira said the administration will examine options such as raising the MEI annual revenue ceiling – currently R$ 81,000 – with proposals ranging from R$ 100,000 in 2027 to R$ 130,000 or even R$ 145,000 under debate. The government estimates that a R$ 130,000 ceiling could add a R$ 90 billion actuarial burden to the pension system and notes potential fiscal losses of up to R$ 5 billion annually.

Other possible reforms include allowing MEIs to hire more than one employee and adjusting contribution rates to improve the regime’s sustainability. Officials warned against “pejotização,” the practice of shifting formally employed workers to MEI status, and stressed the need for fiscally responsible solutions. The ministry emphasized that “nobody will be left behind” as it works with legislators and industry groups to shape the final regulations.