With effect from October 1, 2013, the employees can benefit from financial support for the new employment agreements.

This employment incentive was approved by Order 286/2013, of September 16, which remains in force until September, 30 2015.

The financial support corresponds to 1% of the monthly wage of the employee with reference to the amount paid by the employer relevant for the purposes of contributory rate incidence due to social security.

The employer must submit its application, for the allocation of financial support, at the moment of formalizing the admission of the employee in the social security. The employer should meet the following requirements:

• i. Have its social security and taxes in order;
• ii. Have a regularized situation regarding the refunds in connection with the financing of the European Social Fund; 
• iii. Not to be in default in respect of the financial support granted by the Institute of employment and vocational training; 
• iv. Not be in default regarding to deliveries due within the legal framework of the labour compensation fund, the equivalent mechanism and the guarantee fund of labour compensation; 
• v. Have an organized accounting system in accordance with the law, where applicable.

IEFP, I.P. is the Portuguese entity responsible for the quarterly payment of the financial support. 

The approval of this measure is related with the new contributions due to the compensatory funds. The aim is to compensate the employees of the costs incurred with the payments to the compensatory fund and the compensatory guarantee fund (0,925% and 0,075% for each employee, respectively).