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Senate Proposal Provides Income Tax Exemption for Teachers Earning Up to R$ 10 Thousand, with Fiscal Compensation through Betting Taxation.
The possibility of teachers being exempt from Income Tax has gained attention in the National Congress. A bill under consideration in the Federal Senate proposes that teaching professionals with a monthly income of up to R$ 10 thousand be exempt from paying income tax.
To avoid a negative impact on public finances, the proposal establishes that the loss of revenue will be compensated with funds from betting taxation, the recently regulated fixed-odds betting in the country.
The initiative is outlined in the Bill (PL) 5.143/2025, authored by Senator Fabiano Contarato (PT-ES), and is still awaiting processing.
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The text amends Law 7.713 of 1988, which addresses exemption and deduction rules for Income Tax, and limits the benefit to earnings obtained solely from teaching activities.
Right from the first articles, the bill makes it clear that the focus is on valuing teachers, both in basic education and higher education, considered strategic for the country’s social and economic development.
Who Can Benefit from the Proposal?
The income tax exemption outlined in the bill applies to teaching professionals working in early childhood education, elementary, secondary, and higher education, provided their monthly remuneration does not exceed the ceiling of R$ 10 thousand.
Another essential criterion is that the income must originate exclusively from teaching activity.
According to the author, this limitation prevents the benefit from being extended to other income sources and ensures that the public policy is truly directed towards teachers who rely on teaching salaries.
Bets as a Fiscal Compensation Instrument
One of the central points of the bill is the linkage of the exemption to the revenue obtained from betting.
The tax on fixed-odds betting was established by Law 14.790 of 2023, which regulated the sector in Brazil after years of operation in a poorly controlled environment.
In Contarato’s assessment, the income tax exemption for teachers is likely to generate low fiscal impact.
Still, the proposal explicitly states that the revenue loss will be compensated by the tax collected from betting, ensuring the balance of public accounts.
This strategy reinforces a recent trend in the Legislative: using the taxation of expanding sectors to fund public policies aimed at essential areas such as education.
Outdated Salaries and Challenges in Teaching
In the justification presented to the Senate, the legislator argues that, despite enhancement policies adopted in recent years, Brazilian teachers continue to earn less than other professionals with the same qualifications.
This gap, according to the text, compromises goals set by the National Education Plan (Law 13.005 of 2014), which aimed for the equalization of average teacher salaries by 2024—a goal that has not been fully achieved.
Moreover, the salary difference has a direct impact on the attractiveness of the career, making it difficult for qualified professionals to enter and remain in the educational system.
Valuation as a Structural Policy
For the bill’s author, the income tax exemption should not be viewed merely as a tax benefit, but as a tool for strengthening Brazilian education at different levels.
“The measure aims to value the teaching career and encourage the retention of qualified professionals in early childhood, elementary, and secondary education—the foundational structure of the entire educational system—as well as in higher education, responsible for the technical and scientific training of the country’s future professionals,” explains the senator.
The expectation is that the increase in teachers’ net income will help reduce career dropout and improve working conditions in the medium and long term.
Path of the Bill in Congress
The PL 5.143/2025 will still go through the Senate’s thematic committees before proceeding to a vote in the plenary.
During this process, the text may receive amendments, both for technical adjustments and to redefine criteria related to the exemption or the allocation of betting funds.
The proposal is expected to spark debates involving education, taxation, and fiscal responsibility.
While supporters highlight the potential for valuing teachers, critics warn about the dependency on revenue linked to the betting market.
The income tax exemption for teachers thus emerges as part of a broader debate on tax justice and budget priorities.
As the text awaits processing, the initiative already brings to light a sensitive issue: how to concretely recognize the role of teachers in shaping the country and transform this valuation into effective public policies.
With information from Senate Agency.
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