# Brazilian legislative economic and labor reforms > Live situation record from CLSTR: https://clstr.news/situations/brazilian-legislative-economic-and-labor-reforms > Updated: 2026-10-23T13:45:02.000Z. Sources: 135. Developments: 6. The Brazilian legislature has advanced several measures focused on economic stimulation, labor adjustments, and microentrepreneur support. On October 14, the Industry, Commerce, and Services Commission of the Chamber of Deputies approved a bill to establish the National Policy for Stimulating Job and Income Generation, offering tax incentives for hiring the long-term unemployed. Other approved measures include allowing direct hiring of non-profit health insurance for public servants, providing interest discounts for early bank debt repayment, and allowing the judicial breaking of bank secrecy to verify income for child support defaulters. On October 15, the Brazilian Senate unanimously approved Complementary Law Project 186/26 to modify the Microentrepreneur Individual (MEI) regime. This legislation implements a progressive increase in the annual gross revenue limit, rising from R$ 81,000 to R$ 110,000 in 2027 and R$ 140,000 in 2028, while allowing MEIs to hire up to two employees. The project also includes a debt amnesty for those registered in the Union's Active Debt until October 13, 2026. The ‘Prospera MEI’ initiative, introduced by President Luiz Inácio Lula da Silva, has progressed through the sanctioning of Complementary Law 238/2026. This law provides an amnesty for federal tax debts incurred up to October 13, 2026, potentially forgiving between R$ 12.6 billion and R$ 18.7 billion for approximately 3.6 million workers, contingent on maintaining regular payments for six months post-implementation. Following this, President Lula da Silva sanctioned new legislation to restructure MEI conditions, including an amnesty for approximately R$ 15.5 billion in debts. Recent developments confirm the implementation of the Prospera MEI package, which includes expanded access to public procurement through exclusive bidding processes for contracts up to R$ 32,746.06. ## Claims - The debt forgiveness is estimated to have a fiscal impact of approximately R$ 3 billion between 2027 and 2029. (disputed by 8 sources) - The debt forgiveness could reach a value of R$ 18.7 billion. (disputed) - The annual revenue ceiling for MEIs will increase from R$ 81,000 to R$ 110,000 in 2027 and R$ 140,000 in 2028. (corroborated by 35 sources) - The legislation allows MEIs to hire up to two employees instead of one. (corroborated by 35 sources) - The proposal grants full forgiveness of debts registered in the Union's Active Debt until October 13, 2026. (corroborated by 35 sources) - The Chamber of Deputies approved a bill to increase the MEI revenue ceiling and forgive debts. (corroborated by 32 sources) - To maintain debt forgiveness, entrepreneurs must pay taxes regularly for six months following the law's enactment. (corroborated by 14 sources) - Beneficiaries must waive any ongoing legal actions against the Union related to the covered debts. (corroborated by 12 sources) - The government is proposing a debt amnesty for the events, bars, and restaurants sectors. (corroborated by 8 sources) - The maximum value for exclusive public bidding for micro and small enterprises will rise to R$ 100,000. (corroborated by 6 sources) - The government will offer a BNDES credit line with subsidized interest rates for small businesses. (corroborated by 5 sources) - The Prospera MEI package includes a gradual increase in the annual revenue ceiling for micro-entrepreneurs. (corroborated by 4 sources) ## Timeline ### 2026-10-23: Brazil implements Prospera MEI package for micro-entrepreneurs Brazil's Prospera MEI package will increase revenue limits for micro-entrepreneurs, allow hiring two employees, and forgive billions in federal tax debts starting January 2027. 10 sources. https://clstr.news/cluster/brazil-announces-prospera-mei-package-for-micro-entrepreneurs ### 2026-10-23: Brazil government announces debt relief and revenue limits for small businesses Brazil has sanctioned new laws increasing revenue limits and forgiving debts for MEIs, while proposing similar relief for the events, bars, and restaurants sectors. 29 sources. https://clstr.news/cluster/brazil-president-lula-sanctions-new-legislation-for-micro-entrepreneurs ### 2026-10-19: Brazil approves MEI debt relief and 40-hour workweek Brazil's Congress approved the ‘Prospera MEI’ package, featuring debt forgiveness and higher revenue limits for micro-entrepreneurs, alongside a transition to a 40-hour workweek. 14 sources. https://clstr.news/cluster/brazil-updates-mei-revenue-limits-while-mpes-await-relief ### 2026-10-17: Brazil Senate approves debt forgiveness and higher revenue limits for MEIs The Brazilian Senate approved a package for microentrepreneurs (MEIs) that forgives R$ 12.6 billion in federal debts and raises the annual revenue ceiling to R$ 140,000 by 2028. 17 sources. https://clstr.news/cluster/brazil-senate-approves-higher-revenue-limit-and-debt-relief-for-meis ### 2026-10-15: Brazil Senate approves MEI revenue ceiling increase and debt forgiveness Brazil's Senate approved a bill to raise the MEI annual revenue ceiling to R$ 140,000 by 2028 and forgive R$ 12.6 billion in federal debts. 88 sources. https://clstr.news/cluster/brazil-chamber-of-deputies-approves-mei-revenue-limit-increase ### 2026-10-14: Brazil Chamber of Deputies advances multiple legislative proposals The Brazilian Chamber of Deputies has approved several bills covering public servant health plans, consumer debt rights, child support enforcement, tax incentives for long-term unemployed, and sports-related 규제 13 sources. https://clstr.news/cluster/brazil-chamber-of-deputies-approves-tax-incentives-for-long-term-unemployed-hires --- Cite as: Brazilian legislative economic and labor reforms. CLSTR, https://clstr.news/situations/brazilian-legislative-economic-and-labor-reforms