Insights

REDUCTION OF THE EMPLOYER”S SOCIAL SECURITY CONTRIBUTION RATE

21/10/2014

Decree-Law 154/2014 October 20, 2014 approved an exceptional measure of employment incentive, meaning the reduction of 0.75 % of the contribution rate borne by the employer relating the social security contributions due from November 2014 to January 2016 by the employer.

The incentive applies to private sector employers subject to contributions to the Social Security Scheme, for each employee they employ.

The right to the reduction of the contribution rate also depends on verification of the following cumulative conditions:

  • The employee is contracted by the employer through a permanent employment contract since at least May 2014;
  • The employee's remuneration at least in one of the months between January and August 2014, has been equal to the minimum national wage;
  • The employer has no debts to the Social Security.
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