Understand what changes for MEIs with the end of the 6×1 scale approved by the Chamber

The approval of the PEC that ends the 6×1 scale in the Chamber of Deputies, which took place in two rounds this Wednesday (27), opened a parallel negotiation on changes to the rules for individual microentrepreneurs, microenterprises and small businesses. The text now goes to the Senate for analysis.

Voting in the 1st round had 472 votes in favor compared to 22 against. In the 2nd round, the text obtained a score of 461 against 19.

With approval, the proposal will go to the Federal Senate for analysis. In the Upper House, the PEC will first have to be approved by the Constitution and Justice Commission (CCJ) before being voted on in plenary. If the text advances without changes, part of the new rules will come into effect 60 days after the promulgation of the constitutional amendment.

The approved report foresees the gradual reduction of working hours and includes a device that allows the creation of transitional measures for small businesses. The intention is to reduce the impact of the new rule on companies with less capacity to adapt.

In practice, the main changes for MEIs are not yet defined in the PEC. The text only authorizes a complementary law to establish specific rules to mitigate the effects of the new working hours, as long as they are conditioned on the maintenance of jobs.

The discussion involves two central points: increasing MEI’s annual revenue limit and allowing the hiring of more employees. Today, individual microentrepreneurs can earn up to R$81,000 per year and hire just one employee.

What can change for MEI

The proposal being debated in Congress envisages raising the MEI’s annual revenue ceiling and expanding the number of permitted hires.

In the Senate, a complementary bill has already been approved that increases the revenue limit from R$81,000 to R$130,000 per year and allows the hiring of up to two employees.

In the Chamber, the substitute approved by the Finance and Taxation Committee provides for a higher ceiling, of R$ 145 thousand, with annual adjustment by the IPCA.

These changes, however, still face resistance from the economic team due to the fiscal impact. The estimates mentioned in the negotiations point to a cost of R$48.5 billion in 2027 and R$53.7 billion in 2028.

Why the topic entered the PEC of 6×1

The discussion gained strength because reducing working hours may require more hiring in labor-intensive sectors.

The president of the Chamber, Hugo Motta (Republicanos-PB), argues that updating the MEI rules would help small businesses adapt to the new model.

“Our idea is to be able to move forward, allowing these entrepreneurs to hire more people, as we are reducing working hours. This will bring significant progress, especially in terms of seeking formality in work”, said Motta.

The agreement between the government and the Chamber also included a one-year transition to the new journey. The PEC foresees that working hours will first fall to 42 hours per week, 60 days after enactment, and then to 40 hours, after 12 months.

Changes depend on new law

Despite the inclusion of the topic in the PEC report, the increase in the revenue ceiling and the number of MEI employees will depend on a complementary bill.

The report only says that the complementary law “may establish transitional measures” for MEIs, micro-enterprises and small businesses.

The government defends that any changes be phased and without immediate fiscal impact. To move forward, Congress may also have to make exceptions to tax rules that restrict the creation of new tax benefits.

A working group must be installed to try to build a consensus text. The team must bring together technicians from the Legislature and representatives from the Ministries of Finance and Entrepreneurship.