[REVISION HISTORY]

Brazilian legislative economic and labor reforms

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2026-10-24 04:46 UTC → 2026-10-24 22:41 UTC · added ~~removed~~

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. ~~The government also announced plans for a new bill to provide debt relief for companies in~~ Recent developments confirm the ~~events, bars, and restaurants sectors under~~ implementation of the ~~Simples Nacional regime, alongside a new BNDES credit line with subsidized interest rates~~ Prospera MEI package, which includes expanded access to public procurement through exclusive bidding processes for ~~small businesses.~~ contracts up to R$ 32,746.06.

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