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THE NEW CODE FOR SOCIAL SECRUITY CONTRIBUTIONS - Employees
Employment :: 2009-11-12
The global rate is fixed at 34.75%, of which 23.75% will be borne by the employer; the remaining 11% are paid by the employee.
As such, for all short term contracts, employers have been penalized with an increase in the contribution rate in 3% from 23.75% to 26.75%. This will not be applied to cases where the employer has had the need to substitute an employee who is absent due to paternity leave or sick leave for a period greater than 90 days. In the case of long term contracts, the employer is rewarded with a 1% reduction in the contribution rate, and as such the rate will only be of 22.75%. In both cases the rate applicable to the employee is of 11%.
There is also the possibility of applying more favourable rates in accordance with the criteria stipulated by law that may result in a reduction of the overall rate, applied to the employer or the employee, or to both, and may be related to measures to encourage employment, sectors economically weaker, lack of an employer, reduction of the covered protection, amongst others.
New specific regulations will be applied to certain special cases, as those of employees on a very short term contract and trabalho intermitente.
In the first case employees are only protected against incapacity, retirement or death. The rate applied is of 26.1% paid by the employer, and calculated over the taxable income determined with reference to the number of hours worked.
In relation to trabalhadores intermitentes, the taxable income corresponds to the basic pay for the period worked and the compensation received for each period of inactivity.
12th November 2009
Employment Department
Neville de Rougemont & Associados
Contacts: cpovoa@ndr.pt
scarito@ndr.pt
