The Senate approves the increase in the income limit and new hires for the MEI

Project approved by the Senate allows the hiring of a maximum of two employees by the MEI. Photo: Roque de Sá / Senate Agency

Monday evening (12), the Senate unanimously approved a bill that increases the income ceiling to qualify as an individual micro-entrepreneur (MEI). Under the proposal, the authorized gross annual income is now R $ 130,000. Currently, this limit is R $ 81,000. Another change is the one that allows the MEI to hire up to two employees. According to the rules in force, the entrepreneur can only employ one person who receives exclusively a minimum wage or the minimum wage of the professional category. The bill will now be analyzed in the Chamber of Deputies and, if approved, will enter into force on January 1, 2022.

The expected revenue reduction if the proposal is approved has been estimated at BRL 2.32 billion for the year 2022, BRL 2.48 billion for the year 2023 and BRL 2.64 billion for the year 2024, according to a study by the Senate Budget Consultancy. According to federal government data, at the end of 2020 there were 11.2 million MEIs active in Brazil, a number that corresponds to 56.7% of the total active activities in the country.

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