Government proposes increasing MEI limit to R$ 140 thousand and expanding employee hiring

Simples Nacional.
Simples Nacional/Disclosure
A complementary bill sent by President Luiz Inácio Lula da Silva (PT) to the National Congress this Monday (29) proposes to increase the annual revenue limit of the Individual Microentrepreneur (MEI) and allow the hiring of up to two employees.
The proposal foresees a progressive readjustment of the ceiling, which is currently R$81 thousand per year. According to the text, the limit will increase to R$ 110 thousand in 2027 and will reach R$ 140 thousand in 2028. The measure affects more than 13 million micro-entrepreneurs registered in the country.
Now on g1
The project was delivered to the president of the Chamber of Deputies, Hugo Motta (Republicanos-PB), and is part of an effort by the federal government to update the rules of the simplified regime.
Currently, the The MEI ceiling has not been readjusted since 2018. According to the government, the gap accumulated over the years - caused by inflation and the natural increase in revenue - has made it difficult for entrepreneurs to remain in the category.
The proposal seeks precisely to prevent small businesses from having to migrate to more complex tax regimes as they grow. With the new model, the idea is to allow entrepreneurs to expand their activities without leaving formalization.
In addition to increasing the ceiling, the project also changes the hiring rules. Today, MEI can only have one employee. With the change, it will be possible to hire up to two employees, which, in the government's assessment, should give more flexibility to business organization and encourage the generation of formal jobs.
The Minister of Entrepreneurship, Paulo Pereira, stated that the initiative has a strategic nature for the economy.
"This set of measures was designed to remove obstacles, expand opportunities and provide conditions for millions of entrepreneurs to grow, hire and prosper", he said.
The proposal was prepared in conjunction with the Ministries of Finance, Planning and Budget and Management and Innovation in Public Services.
Now, the text begins to be processed in Congress and still needs to be approved by the Chamber and the Senate before coming into force.
Simples Nacional
Created in 2006, Simples Nacional aims to stimulate small businesses. The special regime consists of the unification of some taxes with more favorable rates for the entrepreneur.
The tax reform on consumption, approved in 2023, did not change the limits of classification of Simples and MEI companies.
Currently, the following can join Simples:
individual micro-entrepreneur who earns up to R$81 thousand per year;
self-employed cargo transporter who earns up to R$251.6 thousand per year;
micro-enterprises with up to R$360 thousand per year; and
small businesses with up to R$4.8 million annually.
According to estimates from the Federal Revenue, the government will stop collecting R$136 billion in 2026 with Simples Nacional.

Source: G1