## [Portugal: State Budget for 2023 – Employment and Social Security matters](/en_GB/new/portugal-state-budget-2023-employment-and-social-security-matters)
# Portugal: State Budget for 2023 – Employment and Social Security matters
Portugal - 01 / 05 / 2023
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**The [State Budget for 2023](https://files.dre.pt/1s/2022/12/25102/0009000377.pdf) was published in the official gazette.**
Please find below the highlights on employment and Social Security matters:
### **Social Security**
**1.1.- Communication of employee’s admission**
The deadline for communicating the admission of employees to Social Security is extended to 15 days prior to the beginning of the employment contract.
Whenever, for exceptional and duly justified reasons, related to employment contracts of very short duration or shift work, the abovementioned deadline cannot be observed, companies may communicate the admission of an employee up to 24 hours after the beginning of the employment contract.
**1.2.- Deferral and suspension of deadlines during August**
The following deferral are introduced for deadlines terminating during August, without any additions or penalties for companies:
- Communication of employee’s admission, obligations regarding Social Security, including debts Social Security regularization: up to 31 August, even if it is not a working day.
- Submission of salary monthly declarations: up to 25 August.
It is also established that during August the inspection procedures are suspended.
### **Tax incentives for salary increase**
When calculating company’s taxable profit for corporate tax purposes, company’s costs with salary increases are considered in 150% during the years of 2023 to 2026.
This concerns the followings company’s costs:
- As fixed remuneration and social security contributions bear by the employer;
- With employees with an open-ended employment contract;
- Due to salary increases made mandatory by applicable collective bargaining agreement executed or renewed on the last 3 years.
For these purposes, only the following costs are considered:
- Regarding employees whose remuneration has increased by, at least, 5.1% between the last day of the financial year at stake and the last day of the previous financial year;
- Above the legal minimum wage in force on the last day of the financial year at stake;
- Up to a limit of 4 legal minimum wages.
On the other hand, will not be considered company’s costs regarding:
- Members of the company's statutory bodies;
- Employees who hold (directly or indirectly) at least 50% of the company's shares or voting rights;
- Employees who are part of the employer’s household.
Companies that wider the salary difference on their headcount from one fiscal year to another will be excluded from this tax incentive. I.e., if there is an increase between the annual amount of the highest and lowest fixed remuneration practiced by the company on the last day of the fiscal year, when comparing with the last day of the previous fiscal year.
### **Deferral and suspension of deadlines during August**
**3.1.- Social Security and Labor Authorities administrative procedures**
Social Security and Labor Authority’s procedures with deadlines terminating in August are transferred to the first working day of September of the same year.
This is applicable to administrative offence procedures, requests to be heard or to defend oneself in any procedure, fine’s reduction, waiver and early payment, as well as clarifications requested by Social Security institutions or by Labor Authorities.
**3.2.- Labor Compensation Funds**
Obligations regarding Labor Compensation Fund (or equivalent mechanism) and Labor Compensation Guarantee Fund, as well as debt regularization with these, with deadlines terminating during August, may be observed up to the last day of that month, even if it is not a working day, without any surcharg
[Labor and Employment Law](/en_GB/tags/labor-and-employment-law), [Portugal](/en_GB/tags/portugal)
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### Related services
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