Littler Global Guide - Portugal - Q1 2019

SUMMARY

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.

 
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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...

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