New Decree-law gives Companies the possibility to contribute to the Retirement Certificate Fund on behalf of their employees
Labor and Employment Law Alert 20-2018
Decree-Law no. 82/2018, 16th October was published in the official gazette, making possible that employers contribute to the Retirement Certificate Fund (“Fundo de Certificados de Reforma”) on behalf of their employees, provided that they are inscribed in the Public Capitalization Regime (“Regime Público de Capitalização”).
The Public Capitalization Regime is a non-mandatory public saving system for retirement, which warrants the beneficiary a monetary supplement to other pensions that he may be entitled to (namely the retirement pension). For that, each beneficiary inscribed in the Public Capitalization Regime has an individual account, that shall receive the beneficiary’s, or his employer’s, monthly contributions. At the end of the beneficiary’s active life, he will benefit from the savings that result of his individual account.
This changes enter into force on November 1st, 2018.