COVID-19: Portugal published a Decree-Law providing for an exceptional measure to compensate for the increase in the minimum monthly wage
Portugal Labor Alert
The exceptional compensation measure is applicable, throughout Continental Portugal, to all employers, regardless of their legal form (as well as individuals with one or more employees), corresponding to a one-off cash subsidy paid by 'IAPMEI - Agência para a Competitividade e Inovação, I. P.' (IAPMEI, I. P.), or by the 'Instituto do Turismo de Portugal, I. P. (Turismo de Portugal, I. P.)'.
Access to the cash benefit depends on the following conditions being met: (i) have, in the remuneration statement of December 2020, one or more full-time employees with a declared base remuneration equal to or higher than the RMMG for 2020 (€635,00) and lower than the RMMG for 2021 (€665,00); (ii) have their tax and social security contributions situation in order.
The amount of the cash benefit corresponds to €84.50 per employee, who, in the remuneration statement for December 2020, received the amount as base remuneration declared equivalent to the RMMG 2020. Notwithstanding, the cash benefit will correspond to 50% of the amount of €84.50, if, in the remuneration statement for the month of December 2020, the employee's declared base remuneration was between the RMMG for 2020 and lower than the RMMG for 2021.
For purposes of payment of the cash benefit, the above-mentioned entities will provide the employers identified in the Social Security information system with an electronic registration system, accessible through their respective websites, to collect additional information. Failure to do so within 30 days of the entry into force of this Decree-Law will determine the forfeiture of the right to the cash benefit.
This cash benefit may be cumulative with other support measures, including those granted due to the Covid19 pandemic.