Draft Law establishes minimum wage for individual micro-entrepreneurs during quarantine.

By Denise Assis, for Journalists for Democracy - While the government held its "masquerade ball" to present timid measures, which include, for example, aid of R$ 200,00 per month to self-employed workers, without, however, detailing rules for the immediate implementation of the "package," the PT (Workers' Party) deputies Margarida Salomão (PT-MG) and Enio Verri (PT-PR) presented, this Wednesday (March 18th), Bill 721/20, which creates the MEI Insurance. The bill proposes the payment of a minimum wage per month to all MEIs who earned up to R$ 2,000 per month in 2019. Workers will be entitled to this benefit during the period in which the quarantine is in effect. The objective is to minimize the difficulties of these workers and their families.

It quickly became clear to Minister Paulo Guedes that his measures, announced in a controversial press conference where the rules released by the Ministry of Health were broken – everyone was very close together, speaking without masks and using them improperly – were not well received. Spontaneously, the population of several capitals and cities across Brazil started a pot-banging protest earlier than the 20:30 pm that had been called for by progressive groups. 

The quarantine imposed by the COVID-19 (coronavirus) pandemic has placed more than 9 million Brazilian workers in a situation of extreme vulnerability. These are the individual micro-entrepreneurs (MEI) – app drivers, hairdressers, construction workers, delivery workers, among other categories – who live without a fixed salary, without guarantees, without vacations. If they don't work, they don't earn, they can't pay their bills. 76% of these workers have no other source of income and 15% of them earn up to 2 minimum wages per month, according to Sebrae.

“In this time of great difficulty, we need to improve the economic conditions for survival so that the most vulnerable sectors of the population can be assisted. The MEI Insurance addresses the urgent need of more than 1,3 million workers prevented from carrying out their activities because of the pandemic,” explained Representative Margarida.

In addition to presenting the project, the deputies point out where the resources for its immediate implementation could come from. “BNDES, a tool still largely Brazilian, is capable of preventing the disaster from being greater than it actually will be. Bill 721/20 is a measure that addresses the need to prevent the disappearance of many micro-enterprises, which are fundamental to the functioning of the economy and job creation,” declared Enio Verri.

Proof of the gross revenue required in the first paragraph will be provided through the Annual Declaration of the Simples Nacional for Individual Microentrepreneurs (DASN-MEI) from the previous calendar year. The resources for this benefit will come from the Workers' Support Fund (FAT). If approved, the law will come into effect immediately upon its publication.