Increase to Work Accident Pensions
New Legislation Enacted
Authors: Ricardo Grilo and Gonçalo Machado dos Santos, Attorneys at Law – Garrigues Portugal SLP Sucursal
On January 17, 2019, the official gazette published Ordinance No. 23/2019, which increased the work accident pensions for 2019 by 1.60%. Such increase has a retroactive effect, from January 1, 2019, onwards.
Update to Indexing Reference for Social Support
New Legislation Enacted
Authors: Ricardo Grilo and Gonçalo Machado dos Santos, Attorneys at Law – Garrigues Portugal SLP Sucursal
On January 17, 2019, the official gazette published Ordinance No. 24/2019, which set the indexing reference for social support to 435.76€ for the year 2019. This value is the reference measure in the determination, calculation and updating of several social benefits, such as the unemployment allowance. Such increase has a retroactive effect, from January 1, 2019, onwards.
Age to Access Old-Age Pension in 2020
New Legislation Enacted
Authors: Ricardo Grilo and Gonçalo Machado dos Santos, Attorneys at Law – Garrigues Portugal SLP Sucursal
Ordinance no. 50/2019, of February 8, sets the age to access the regular retirement pension in the Portuguese general social security system for year 2020. This new ordinance is in accordance with Decree-Law no. 187/2007, of October 10, which determined the gradual update of the regular age to access the retirement pension in the Social Security general system, considering the average life expectancy at 65 years old, between the second and third year prior to the attribution of the pension. Under the new ordinance, the age to access the regular retirement pension for 2020 is maintained at 66 years and five months. This Ordinance also updates the sustainable factor of 0.8533 to apply when calculating old-age pensions, at the time of their attribution or conversion. These rules are considered effective as of January 1, 2019.
New Legal Changes Were Introduced to the Financial Support Program to Promote
New Legislation Enacted
Authors: Ricardo Grilo and Gonçalo Machado dos Santos, Attorneys at Law – Garrigues Portugal SLP Sucursal
Ordinance no. 95/2019, of March 29, 2019, amends the “Contrato-Emprego” Program, a public program which provides financial incentives to employers, to increase the employment rate. The new ordinance introduces significant changes. For example, individual entrepreneurs and entities that have initiated an extrajudicial company recovery program (Regime Extrajudicial de Recuperação de Empresas) may now present an application to Program as an employer. Further, the program may recruit persons who are not registered with the Social Security as “dependent worker” or “self-employed” during 12 consecutive months prior to the disclosure of the job offer. The applications must be adjudicated within 20 working days. The ordinance also provides guidance on the schedule of payments and employers’ obligation to return the financial support if the employment contract ends prematurely.
