Exceptional measure of employment support

Decree-law 154/2014 of October 20 approved a temporary reduction of the contribution rate paid by the employer.
This contribution rate has been decreased by 0.75% and relates to remunerations paid from November 2014 to January 2016.
This exceptional measure is applicable to private companies, who are taxpayers in the general social security scheme, and concerns each employee under its employment, where the following conditions are met:
a) The employee is bound to the employer by an employment contract without interruption since at least May 2014;
b) The employee has earned a salary equal to the minimum wage, at least in one of the months between January and August 2014;
c) The employer has no debts to the social security.
The rate reduction relates to the contributions in regards to wage payment from November 2014 to January 2016, including holiday and Christmas bonuses.
Being officially assigned by the social security services, when the conditions for granting the reduction are met, the employers should deliver the remuneration statements of the employees covered in accordance with the reduced contribution rate applicable.
In the case of employees on part-time contracts, the reduction of the contribution rate depends on the presentation of the application, being the period of the reduction reported:
a) If the application is submitted until November 30, 2014: to the entire period from November 2014 to January 2016;
a) Otherwise: from the month following the application.
The right to reduce the contribution rate ceases if:
b) The employment contract is terminated;
c) The employer fails to have its contribution situation duly regularised.
This new measure only refers to employees who are paid the minimum wage and is not affected by any other benefit already in place for the same employee.
By Dr Eduardo Serra Jorge
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Dr Eduardo Serra Jorge is founding member, senior partner and CEO of lawyers firm Eduardo Serra Jorge & Maria José Garcia – Sociedade de Advogados, R.L., created in 1987.
In his column, he addresses legal issues affecting foreign residents in Portugal. Faro office at Gaveto das Ruas Pedro Nunes e José de Matos, 5 R/C | 289 829 326
www.esjmjgadvogados.com