Taxation

ECONOMIC MEASURES PUT IN PLACE BY THE GOVERNMENT IN RESPONSE TO COVID-19

Update

17/03/2020: Social security: exemption temporaire du paiement des cotisations par l’employeur, cette mesure s’applique également aux travailleurs indépendants.


We're going through a period that's going to take its toll on businesses in Portugal and the rest of Europe. Every government is deploying economic measures to keep their companies afloat, with the obvious aim of avoiding an economic crisis linked to covid-19.

Portugal is no exception to this rule, and Antonio Costa's Socialist government has just introduced 3 economic measures, which we describe below.

Economic measures against forced downsizing

Employees with children under the age of 12

Depuis lundi, toutes les écoles du pays (privée comme public) sont fermées pour un minimum de 15 jours. En tant que chefs d’entreprise, vous devez permettre à vos salariés de rester à la maison s’ils ont des enfants âgées de 12 ans ou moins. Afin de palier la perte économique aussi bien pour l’employeur que pour le salarié, l’état par l’intermédiaire de la sécurité sociale va procéder au payement de 66 % du salaire de base et vous employeurs payerez les 34 % restant. Cette mesure est valable pour le moment 14 daysOf course, this measure will evolve according to the situation.

Please note, however, that if your employee's spouse is already taking advantage of this measure, or if he or she is unemployed, it is not possible for your employee to benefit from this measure.

Putting your employees on holiday

Given the emergency situation, you have the option of forcing your employees to take time off during this period of crisis.

Self-employed contractor

If you are auto-entrepreneur et que la situation vous contraint à ne pouvoir travailler et par définition vous ne pouvez générer du chiffre d’affaires, la sécurité sociale, vous payera à hauteur de 30 % de votre chiffre d’affaires. Le calcule est fait sur la base de vos 3 derniers mois d’activités.

Next phase

It's true that we're not there yet, but it's important to think and plan ahead before putting your business at risk.

4 measures are being studied, but nothing has been decided yet.

  1. The possibility of unpaid leave
  2. Possibility of terminating the contract in agreement with your employee
  3. You send your employees on a training course promoted by IEFP, which will cover 50% of the basic salary.
  4. Simplified redundancy procedure

Concernant le dernier point, le gouvernement travail à la création d’une procédure de « mise à pied » extraordinaire simplifié, ce qui permettrait la suspension temporaire des contrats de travail en vertu de laquelle les entreprises dont l’activité est affectée par la pandémie du covid-19.


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