As published in the Decree-Law 11/2016, of March 8, an exceptional measure to support employment has been created, thereby reducing the contribution rate (taxa contributiva para a segurança social) paid by the employer, by 0,75 percentage points.
This reduction applies to the contributions of salaries from February 2016 to January 2017, which includes holiday and Christmas allowances. The reduction in the contribution rate applies immediately to February salaries declared from March 1 to 10.
Employers of private companies can benefit from this measure if they have:
■ Duly regularised their contribution situation;
■ Employees on part- or full-time employment contracts signed prior to January 1, 2016;
■ Employees who, until December 31 2015, earned a basic monthly salary between €505 and €530, or the proportional value in case of part-time employment contracts (which will be verified according to the Remuneration Statement from December);
■ In case of employees working in the Autonomous Regions, the monthly basic salary is between €530,25 and €556,50 in the Azores and between €515,10 and €540,60 in Madeira.
To take advantage of this measure, the employer or its legal representative must submit the Remuneration Statement, in an individual form, with the rate reduced by 0,75 percentage points, including only the employees covered by this exceptional measure. The new rate will thus be 34% – 23% relating to the employer and 11% to the employee.
In situations where employees have a part-time contract, in order to benefit from the reduction in full, the employer has to submit a request within 30 days after the date of publication of the referred Decree-Law. After the 30 days, the measure applies to the remaining period, starting from the month following the presentation of the request.
The right to the reduced contribution rate ceases when one of the following situations arises:
■ Termination of the employment contract;
■ Notification that the employer no longer has its contribution situation regularised and while that situation continues.
The social security services are responsible for verifying the employer’s eligibility to the reduced contribution rate.
By Dr Eduardo Serra Jorge
|| features@algarveresident.com
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
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www.esjmjgadvogados.com
