MEI: project that expands the ceiling will have a fiscal impact of R$8.1 billion in three years, government estimates

The government calculates a fiscal impact of R$8.1 billion over three years if the complementary bill sent by the Executive is approved, which increases the annual revenue limit for the Individual Microentrepreneur (MEI) and authorizes the hiring of up to two employees.
The MEI must make the Annual Simples Nacional declaration (DASN-SIMEI)
Disclosure/Sebrae
Forwarded to the National Congress last week, the proposal provides for a progressive adjustment 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.
According to official estimates, the cost of the measure will be
R$1.57 billion in 2027;
R$3.15 billion in 2028; and
R$ 3.38 billion in 2029.
The MEI ceiling has not been readjusted since 2018. According to the government, the "updating of gross revenue limits seeks to make the legal parameters compatible with the economic reality of micro-entrepreneurs, allowing businesses in the process of growth to remain within a simplified regime for a period more appropriate to their stage of development."
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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.
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What is MEI
Created at the end of 2008, individual microentrepreneurs are included in Simples Nacional and are based on a simple regime to formalize those who work on their own, such as freelancers and small businesses. Currently, there are around 16.6 million active MEIs in the country.
The MEI contributes to Social Security, but is exempt from other federal taxes and contributions, such as IRPJ, CSLL, PIS and Cofins. It will also remain exempt from future taxes on consumption resulting from the tax reform, such as the federal CBS and the IBS of states and municipalities.
The contribution generates the right to retirement benefits due to age, retirement due to disability or permanent incapacity, death pension, sickness benefit (temporary disability) and maternity pay.
Even with a reduced contribution, the program has recorded, since its inception, a high default rate.
At the beginning of the program, in 2008, the The rate charged was 11% for social security, a value that fell to 5% in 2011. At that time, there was also a definition that this symbolic rate of 5% would become the social security floor for optional low-income insureds.

Source: G1