Brazil raises MEI income ceiling and cuts maternity benefit wait time

A recent Brazilian study found that micro‑entrepreneurs (MEI) are disproportionately higher‑income workers, with many former formal employees now operating under the MEI scheme. The government and Congress have proposed raising the MEI annual revenue ceiling to R$ 110,000 in 2027 and R$ 140,000 in 2028, as well as allowing MEIs to hire up to two employees. Critics warn the changes could strain pension sustainability because only half of MEIs regularly contribute to the INSS.

In parallel, a new law requires the INSS to process maternity‑salary claims within 30 days. If the deadline is missed, the benefit will be granted automatically. The rule applies to domestic workers, rural workers, individual micro‑entrepreneurs, individual contributors and other eligible women, aiming to reduce financial uncertainty during maternity leave.