Brazil moves to raise micro‑entrepreneur income ceiling to up to R$140,000

The federal government is preparing a bill to increase the annual revenue limit for individual micro‑entrepreneurs (MEI) from the current R$81,000 to a range of R$130,000‑R$140,000. Minister of Planning and Budget Bruno Moretti said the change would correct a ceiling that has been stagnant since 2018 and would be introduced gradually between 2027 and 2028 to avoid stressing public finances, noting “this is a legitimate agenda because the ceiling is stuck since 2018.”

Economic analysts warn the existing MEI regime could generate a fiscal gap of about R$711 billion over 70 years, with an additional R$60 billion cost if the ceiling is raised to R$130 k. They recommend tighter eligibility, higher contribution rates and the introduction of employer contributions. About 16.6 million MEIs currently benefit from simplified tax treatment, and the proposal also allows hiring a second employee.