The Portuguese Government approved an exceptional measure to support employment through the reduction of the employer’s contribution rate.

The Decree-Law number 11/2016, of March 8, foreseen that the employers may benefit from a reduction of 0.75 percentage of the contribution rate applicable to the employer regarding remunerations paid from February 2016 to January 2017.

The reduction of the contribution rate is subject to the following conditions:

a)    The contribution is due under a full-time or part-time employment agreement  concluded before January 1, 2016;

b)    The employee receive a monthly remuneration between 505 EUR and 530 EUR, or a proportional amount in the case of part-time employment agreements; and

c)    The employers does not have any outstanding debts to the Social Security.

For part-time employment agreements the granting of the reduction is subject to a request submitted before the Social Security.