Key Moments:
- A new bill proposes exempting teachers from personal income tax on earnings up to R$10,000 per month
- The exemption would be funded by tax revenue from fixed-odds betting companies under Law No. 14,790
- The legislation is currently awaiting formal referral in the Senate as of October 14, 2025
Bill Targets Fiscal Relief for Educators
A legislative proposal in the Brazilian Senate seeks to provide income tax relief to education professionals, leveraging the country’s regulated betting sector to offset the fiscal impact. Known officially as PL 5,143/2025 and introduced by Senator Fabiano Contarato, the bill would allow teachers in both basic and higher education to receive an income tax exemption on monthly salaries up to R$10,000, provided that the income stems solely from teaching activities.
Betting Revenue as the Funding Mechanism
To ensure fiscal balance, the bill directly ties the cost of this exemption to revenue generated from the taxation of fixed-odds betting. This tax framework follows Law No. 14,790, enacted in 2023, which regulates and taxes the betting sector in Brazil. By earmarking a specific portion of gambling tax revenue, the measure is intended not to undermine fiscal responsibility.
Addressing Wage Disparity in Education
The legislation is motivated by longstanding inequities in teacher pay relative to other professions requiring similar educational backgrounds. Citing efforts to address this gap, Senator Contarato has noted that, despite government attempts to increase educator salaries, compensation in the teaching field continues to lag. The bill aligns with the intent of Law No. 13,005 of 2014, which called for parity between teacher salaries and those in comparable professions by 2024, a goal described as not yet fully reached.
“The measure aims to value the teaching profession and encourage the retention of qualified professionals in early childhood, primary and secondary education, the structural foundation of the entire education system, as well as in higher education, which is responsible for the technical and scientific training of the country’s future professionals”, Contarato explained.
Current Status in the Senate
As of October 14, 2025, the proposed legislation is awaiting official referral within the Senate. The bill seeks to amend Law No. 7,713 of 1988, expanding the scope of income tax exemptions for teachers. If enacted, this move could tie the proceeds of Brazil’s regulated betting industry more closely to the funding of public education and social objectives.
| Aspect | Details |
|---|---|
| Bill Number | PL 5,143/2025 |
| Eligibility | Teachers in basic and higher education earning up to R$10,000/month from teaching activities |
| Funding Source | Taxation on fixed-odds betting companies (Law No. 14,790/2023) |
| Status | Awaiting Senate referral as of October 14, 2025 |
- Author
Daniel Williams
