New MEI Revenue Cap: What Changes for Retirement

This page is a translation of the original Portuguese text, provided for convenience. It deals with Brazilian law. If there is any discrepancy, the Portuguese version prevails. Read the original in Portuguese

The federal government has sent the Chamber of Deputies a bill that raises the MEI (Brazil’s individual microentrepreneur category) annual revenue cap from R$ 81 thousand to R$ 140 thousand by 2028. The change widens who can qualify as an individual microentrepreneur and revives questions about how these workers are protected by INSS (Brazil’s National Social Security Institute).

Bill raises the MEI cap to R$ 140 thousand

On June 29, 2026, the President of the Republic delivered to the President of the Chamber of Deputies a complementary bill that raises the annual revenue limit for individual microentrepreneurs. Today, anyone who earns up to R$ 81 thousand a year can register as an MEI. Under the proposal, the cap would rise in stages: to R$ 110 thousand in 2027 and to R$ 140 thousand in 2028.

The official rationale is to correct a lag that dates back to 2018, when the limit was last updated. The text would also allow a microentrepreneur to hire up to two employees instead of just one, and it provides for credit lines aimed at the sector. An estimated 13 million professionals are currently registered in this category nationwide.

The bill still needs a vote in Congress, and the schedule for its progress has not been set. Still, if you are already an MEI or plan to become one, the debate matters for a reason that often goes unnoticed: your status as an individual microentrepreneur directly determines your relationship with Social Security.

Why an MEI is a mandatory INSS insured person

When an individual microentrepreneur registers, he or she begins paying a single monthly payment slip, the Simples Nacional Collection Document (DAS), which combines the business’s taxes and the Social Security contribution. The portion that goes to the National Social Security Institute (INSS) equals 5% of the minimum wage, currently R$ 1.621,00, which comes to about R$ 81,05 per month. This reduced payment is precisely what makes formalization attractive to people with lower incomes.

As long as contributions are up to date, an MEI is a mandatory insured person in the category of self-employed contributor (contribuinte individual), under Law No. 8.212/91, which governs Social Security funding. This provides access to a set of benefits once the minimum contribution period (carência) required for each one is met. It is worth understanding how an MEI contributes and what rights that secures before INSS before counting on any coverage.

The protections include retirement by age, the temporary disability benefit (formerly known as auxílio-doença, or sickness benefit), permanent disability retirement, maternity pay, the survivor’s pension, and the imprisonment benefit (auxílio-reclusão) for dependents. Each has its own minimum contribution period and insured status requirements, which must be checked case by case.

Paying 5% of the minimum wage opens the door to INSS coverage, but on its own it does not count toward retirement by contribution time.

This distinction is decisive. The reduced rate covers the main age-based and disability benefits, but without an adjustment to your payments, you cannot add your time as an MEI to other work periods for purposes of retirement by contribution time.

What changes for the insured person

Raising the cap does not change the amount of the MEI’s Social Security contribution, which remains tied to the minimum wage. The impact is at the point of entry: professionals who currently exceed the R$ 81 thousand limit, and are therefore pushed into the microenterprise regime, could return to or remain in the MEI category and keep the simplified INSS contribution.

In practice, more people gain access to basic Social Security coverage at a low cost. If your revenue is close to the current cap and you fear losing your MEI status, you would gain breathing room to keep paying in the simplified way. The option to hire two employees also changes the routine of labor and Social Security obligations for the business, since each employee generates their own contributions.

The point to watch is not to confuse being formally registered with being fully protected. Coverage exists, but the amount of age-based benefits tends to be limited to the floor, because the contribution is calculated on the minimum wage. If you want a retirement above that level, the path is to make a supplementary contribution, and that is where planning comes in.

There is also an effect on the minimum contribution period. An MEI keeps insured status only while making payments, and a break in payments can lead to the loss of insured status, which affects benefits such as the disability benefit and maternity pay. If you move from formal employment to MEI, or the other way around, keep a close eye on whether your contributions are being recorded in your Social Security statement, so you avoid gaps in coverage that would jeopardize your future rights.

Social Security precautions before counting on retirement

The 5% contribution secures retirement by age, which requires a minimum age of 62 for women and 65 for men, plus a minimum contribution period of 180 monthly contributions. The benefit, however, is paid at the amount of one minimum wage, with no possibility of a higher calculation as long as your contribution base is only the floor.

To use your time as an MEI toward a higher retirement benefit, or to add that period to contributions made as a formal employee, you must make a supplementary payment. Law No. 8.212/91 provides that the insured person pays the 15% difference, for a total of 20% of the minimum wage, so that the period counts as ordinary contribution time. This adjustment must be made with attention to the deadlines, or you risk losing the credit for that time.

Recent reforms, especially Constitutional Amendment 103/2019, have made planning even more necessary, because they changed the rules on age, minimum contribution periods and benefit calculation. Before deciding whether to keep the minimum rate or make supplementary payments, it is worth reviewing your contribution history and simulating different scenarios. Knowing the correct way for self-employed contributors to pay helps you avoid gaps that only show up when you apply for the benefit.

If you want to grow your business and aim for a better income in retirement, Social Security planning done well in advance is how you organize your contributions. Raising the MEI cap makes room for more formalization, but the quality of your protection still depends on how each insured person manages their payments throughout their working life.

Frequently Asked Questions

How much does an MEI pay to INSS each month?

An individual microentrepreneur pays 5% of the minimum wage as a Social Security contribution, included in the monthly DAS slip. With the minimum wage at R$ 1.621,00 in 2026, that comes to about R$ 81,05 per month. To that amount are added R$ 1,00 of ICMS (the state tax on goods and services) for commerce and industry, or R$ 5,00 of ISS (the municipal services tax) for service providers. Keeping your payments up to date is what preserves your insured status and ensures access to INSS benefits.

Is an MEI’s retirement always one minimum wage?

As long as the microentrepreneur contributes only the 5% of the minimum wage, retirement by age is paid at the floor amount, that is, one minimum wage. To receive more than that, you need to make a supplementary contribution and pay on a higher base. For this reason, if you want a higher benefit, you should plan your payments well in advance, adjusting the rate and the calculation base over the years you work.

Does time as an MEI count when added to formal employment?

The period paid at the reduced 5% rate secures age-based and disability benefits, but it does not automatically count as contribution time that can be added to periods of formal employment. To use that period toward retirement by contribution time, the MEI must make a supplementary payment, paying the 15% difference to reach 20% of the minimum wage. Without that supplementary payment, the time counts only toward retirement by age.

As informações deste artigo são de caráter informativo e não substituem consulta jurídica individualizada. Cada caso possui particularidades que exigem análise específica.