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Change under discussion could affect the routine of millions of micro-entrepreneurs, expand the scope of the simplified regime and bring back to the center of the debate the annual revenue limit of the MEI, a topic that involves government, Congress, taxation, and formalization of small businesses.
The federal government intends to act to increase, in the coming years, the annual revenue limit of the Individual Microentrepreneur (MEI), currently set at R$ 81,000 for qualification in the simplified regime.
The indication was made this Wednesday (03) by the Minister of Finance, Dario Durigan, during a ministerial meeting called by President Luiz Inácio Lula da Silva at the Palácio do Planalto, in Brasília.
Conversations between the Executive and the National Congress address proposals to update the MEI qualification ceiling, in a discussion that involves tax benefits, revenue collection, and rules applied to small businesses.
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If the change is approved, entrepreneurs with revenue above the current limit may remain longer in a simplified tax regime, without immediate migration to categories with more complex tax obligations.
Under current rules, one can be an MEI if they register an annual revenue of up to R$ 81,000, or a proportional amount to the period of operation of the company in the year of opening.
The Federal Revenue informs that this limit considers the gross revenue linked to the entrepreneur’s economic activity, and not other financial movements unrelated to the formalized business.
MEI Ceiling Returns to Economic Agenda
The update of the MEI limit has returned to the economic agenda amid the debate about the scope of the simplified regime and the effects of the current ceiling for workers formalized as small entrepreneurs.
With the limit maintained at R$ 81,000 per year, part of the micro-entrepreneurs may approach the ceiling even when the increase in gross revenue does not necessarily represent an equivalent expansion of profit or operational structure.
When the revenue exceeds the allowed limit, the entrepreneur may be disqualified from the MEI and migrate to the status of a microenterprise, according to the rules applied to the Simples Nacional.
This change of category usually involves new fiscal, accounting, and administrative obligations, in addition to altering the way taxes are collected for businesses that leave the simplified regime.
Durigan stated that the government will work to expand the framework of tax benefits in the coming years, without presenting, on the occasion, a new fixed value for the annual limit.
The statement indicates that the topic is under negotiation, but does not change the current rules, as a structural change in the ceiling depends on legislative approval and normative definition.
At the meeting of the top tier of the Lula government, held at the Palácio do Planalto, the minister also defended the economic policies adopted by the federal administration.
During the speech, Durigan cited the performance of economic indicators and mentioned that the dollar was below the level observed at the beginning of the current presidential term.
Expansion of the limit may affect formalization
The potential expansion of the ceiling would reach formalized workers in trade, services, and small productions, as long as they continue to meet the legal requirements provided for the MEI.
Created to facilitate formalization, the regime allows self-employed professionals to have a CNPJ, contribute to Social Security, and issue invoices within simplified rules.
In addition to formalization, the MEI provides access to social security rights provided for in INSS regulations, such as retirement by age, temporary incapacity assistance, and maternity pay.
In return, the micro-entrepreneur must fulfill obligations such as the monthly payment of the Simples Nacional Collection Document and the submission of the annual revenue declaration.
The discussion about the new limit involves the permanence of small businesses in a less bureaucratic model and, at the same time, the evaluation of the fiscal impact of an expansion of the regime.
As the MEI collects fixed and reduced amounts compared to other business frameworks, any change in the ceiling requires analysis of collection, compensations, and transition rules.
Proponents of expanding the limit argue that the change could reduce the so-called “lock-in effect”, a situation where entrepreneurs avoid increasing sales so as not to exceed the annual ceiling.
This point appears in the debate because, in some sectors, gross revenue can grow without a proportional increase in margin, net profit, or business expansion capacity.
Negotiation on the MEI goes through Congress
Despite the government’s indication, the expansion of the MEI limit depends on negotiation with the National Congress and the approval of a proposal capable of changing the current rules.
As the regime is linked to the Simples Nacional and tax benefits, changes in the framework usually undergo fiscal impact analysis and articulation between the Executive and Legislative branches.
So far, the discussion mentioned by the government has not presented a new official cap for the annual revenue of the regular MEI, which remains limited to R$ 81,000 per year.
Without a formal definition, the confirmed information is the government’s intention to support an expansion in the coming years, within an ongoing legislative negotiation.
Different proposals have already appeared in the public debate on the subject, with different values and formats, but none of them change the current limit without approval and publication of a new rule.
Until there is a regulatory change, the current annual cap and the specific rules applied to categories with differentiated treatment, such as the autonomous freight carrier, remain in effect.
In January 2026, the Federal Revenue Service released the updated values of the MEI’s monthly contribution, calculated based on the minimum wage of R$ 1,621.
For the general MEI, the social security portion became R$ 81.05, with additions of ISS or ICMS when these taxes apply to the activity performed.
Ministerial meeting also addressed foreign trade
The talk about the MEI took place in a broader government meeting, which also addressed economic measures, fiscal indicators, and trade negotiations involving Brazil and the United States.
Among the subjects discussed in the Executive are attempts to avoid new American tariffs on Brazilian products and the possibility of opening more space for U.S. items in specific sectors.
One of the segments mentioned in the trade talks is equipment used in the health sector, a sector mentioned among the points of interest of the United States.
According to the line presented by the government, the negotiation seeks to reduce the risks of new tariffs and maintain dialogue channels with Washington in an environment of greater pressure on international trade.
In the section related to small businesses, the main indication was the intention to review the MEI’s revenue limit, without immediate change in the obligations of micro-entrepreneurs.
For those operating under the simplified regime, any potential update of the cap may influence sales planning, invoice issuance, financial organization, and decision on remaining or migrating to another business classification.
Until a proposal is approved, the official MEI limit remains unchanged, and entrepreneurs remain subject to the current rules of revenue, annual declaration, and monthly collection.
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