Summary

Self-employed workers have been one of the hardest groups to cover in Brazil. In 2018, approximately 66% of self-employed workers having contributory capacity were outside the national social security system.

Simples is a Monotax (simplified tax collection/payments system) type of scheme for small contributors in Brazil, unifying several taxes and contributions in a unique tax payment. Micro-entrepreneurs who join are automatically entitled to the benefits of the contributory social security system.

It has proven to be an effective tool to formalize micro and small enterprises, and to extend social security coverage to self-employed workers.