The update of the ceiling for individual microentrepreneurs, the maximum limit considered for an entrepreneur to fit into the category, was included by the National Congress within the scope of the 6×1 scale negotiations. The economic team must negotiate a lower value and stagger the changes to the MEI rules to avoid a fiscal impact of around R$50 billion per year with the changes.
According to the president of the Chamber of Deputies, deputy Hugo Motta (Republicanos-PB), an agreement was reached with President Luiz Inácio Lula da Silva to increase the revenue limit (which is currently R$81 thousand per year) and allow individual micro-entrepreneurs (MEI) to employ more than one worker. Legislation currently limits hiring to just one employee.
A project updating the MEI parameters has already been approved by the Senate and is being processed in the Chamber. The senators approved an increase in the annual revenue ceiling to R$130,000. However, in the Chamber of Deputies, the limit has already been updated to R$ 145 thousand, with annual updating by the Broad Consumer Price Index (IPCA). The project also foresees the hiring of up to two employees.
According to the Ministry of Finance’s calculations, this version would cost the public coffers R$48.5 billion in 2027 and R$53.7 billion in 2028. The assessment of Minister Dario Durigan’s team is that the increase proposed by the deputies and the update by the IPCA would be unconstitutional.
The government should try to negotiate a reduction in the proposed limit, in addition to staggering the changes. Regarding the increase in employees, in turn, it is not seen as a problem.
Change signaling
This Monday, Motta said that the value of the MEI ceiling had not yet been defined. He also signaled that the changes could be gradual.
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— In the next few days, we will address the issue of individual micro-entrepreneurs. Today, these entrepreneurs can only employ one person per contract. Our idea is to be able to move forward, allowing these entrepreneurs to hire more people, since we are reducing the working day — said Motta, when announcing the details of the text of the Constitutional Amendment Proposal (PEC), which ends the 6×1 scale.
Motta also said that Lula is sensitive to the deputies’ request to raise the MEI’s revenue limit.
— President Lula is sensitive to this appeal made by us. It’s an appeal that practically unites the entire house — said Motta.
Experts warn, however, that increasing the MEI revenue limit could worsen the Social Security deficit because the contribution rate, equivalent to 5% of the minimum wage, does not cover benefit expenses in the future.
