- What happened: The Senate approved the full forgiveness of debts for MEIs registered through 10/13/2026.
- New limit: The annual revenue ceiling rises from R$ 81,000 to R$ 140,000 by 2028.
- Impact on your wallet: The market reacted with a rise in the U.S. dollar and interest rates due to the R$ 3 billion fiscal cost.
The Senate approved on Thursday (15), by a 78-0 vote, a supplemental bill granting full debt forgiveness to Individual Microentrepreneurs (MEIs) while sharply raising the category's revenue cap. For investors, the move triggered fiscal risk alarms, pushing the U.S. dollar to R$ 5.10.
What Happened to MEIs in the Senate?
The Federal Senate approved the complete remission of debts related to Social Security Contributions and related fines for all MEIs with balances registered through October 13, 2026. The measure, which now heads to the president for signing, is viewed as a strong electoral gesture by the government, though it comes with a hefty bill for the federal budget.
According to federal government estimates cited by Mercado Hoje, the budgetary impact of this forgiveness is approximately R$ 3 billion. To maintain the benefit, microentrepreneurs will be required to keep their future contributions strictly up to date.
How Does the New MEI Revenue Cap Work?
The new framework will be phased in over the coming years, allowing more entrepreneurs to remain in the category while paying lower taxes. According to the approved text, the annual gross revenue limit—currently R$ 81,000—will rise to R$ 110,000 in 2027 and reach R$ 140,000 in 2028.
Beyond revenue, the bill changes hiring rules: MEIs will now be allowed to have up to two employees (previously limited to one), provided they are paid the minimum wage or the category floor. This change aims to formalize small businesses operating at the edge of the previous rules.
Why Did the Financial Market React Negatively?
The financial market interpreted the approval as an increase in fiscal risk, since the measure reduces tax revenues and forgives debt at a time when public finances are under pressure. The unanimous approval (78-0) signals a lack of political resistance to spending or tax breaks during an election season.
As a direct result, the U.S. dollar rose 1.16%, closing the day at R$ 5.10. Additionally, long-term interest rates pushed higher, hurting holders of fixed-rate or IPCA-linked fixed-income securities due to negative mark-to-market pricing.
Up 1.16%, reflecting fiscal risk perceptions in Brazil.
Estimated revenue loss from debt forgiveness.
The End of the 6x1 Work Schedule and the Impact on Inflation
Along with the MEI package, the Senate also advanced Constitutional Amendment Proposal (PEC) 221/2019, which proposes ending the 6x1 work schedule and reducing the workweek to 40 hours. According to the National Industry Confederation (CNI), the measure could lead to passing costs along to consumers and driving up inflation.
For investors, this combination of factors—tax relief for MEIs and potential labor cost increases from the 6x1 schedule change—creates a volatile outlook for the IPCA inflation index. If inflation rises, the central bank will be forced to keep interest rates high for longer, which weighs on the valuation of risk assets like stocks and real estate funds.
If you hold Tesouro IPCA+ inflation-linked bonds or fixed-rate paper, prepare for price swings: fiscal risk pushes yields up and bond prices down today. For dividend-focused investors, the higher MEI revenue cap supports consumer spending, but a dollar at R$ 5.10 increases input costs and can compress corporate profit margins on the B3.
Presidential Signing — Watch for potential vetoes regarding the new revenue cap or hiring rules.
Yield Curve — Monitor DI futures; if rates keep climbing, short-term (floating-rate) fixed income becomes more attractive than long-term paper.
6x1 Regulation — The bill provides a 14-month transition period; the real impact on prices will only materialize after that window.
