Brazil Senate clears law for public servants to become micro‑entrepreneurs (MEI)

The Senate's Constitution and Justice Committee approved a bill that would allow federal public servants to register as micro‑entrepreneurs (MEI) without losing their positions. The proposal, authored by Senator Nelsinho Trad (PSD‑MS), was approved terminatively, meaning it bypasses a full Senate vote and now proceeds to the Chamber of Deputies for further consideration.

The legislation sets a revenue ceiling of R$ 81,000 per year for the MEI activity and excludes servants who hold commission or trust posts, military personnel, and employees of state‑run companies. It also bars the newly created micro‑enterprises from participating in public tenders or executing contracts with the agency to which the servant is attached. Proponents, including Senator Irajá (PSD‑TO), argue that the measure will broaden the pool of entrepreneurs, support economic dynamism, and help address demographic challenges linked to Brazil’s aging population.

If enacted, the law would formally expand the range of private economic activities that public servants may pursue while maintaining compatibility with their public duties.