It provides benefits for health care, sickness, retirement, disability, death and old age, maternity, paternity and adoption. Members of the governing board who perform management or administration functions are entitled to protection in the event of unemployment. Employees from countries with which Portugal has signed a Convention on Social Security, working temporarily in Portugal, may obtain exemption from the payment of contributions in Portugal. First law: 1919. Voluntary registration can also be made by those who aren’t required to register. 800-290 029) and a comprehensive website (in Portuguese only), which includes downloadable documents and forms (www.seg-social.pt ). googletag.defineSlot('/1015136/Mobile_Leaderboard', [320, 50], 'div-gpt-ad-1319640445841-6').setCollapseEmptyDiv(true).addService(googletag.pubads()); 451/2005, Adminstrative arrangement: Notice nr. Both employers and workers have to pay social security contributions. In case there is no social pass, it should be considered the value of the social pass that the employee would hypothetically pay for the utilization of collective transportation. Submit annual declaration of income and deductions to … // ]]> Social Security benefits only apply to Portuguese nationals, qualifying European Union nationals, and those legally resident in Portugal as well as their spouses and dependents. In addition, social security agreements may “totalise” your periods of contributions or residence in Portugal and in your home country. else if ((width < 1200) && (width >= 768)) { Current laws: 1991 (social assistance), 1994 (social security), 2009 (social assistance), 2011 (social security), 2013 (early and partial retirement), 2013 (sustainability factor and indexation), and 2015 (social security). var googletag = googletag || {}; Companies also must make contributions for the members of their corporate boards. googletag.defineSlot('/1015136/Sponsorship_200x50_NoAdsense', [200, 50], 'div-gpt-ad-1319640445841-0').addService(googletag.pubads()); The Social Security Rate For Employees in Portugal stands at 11 percent. googletag.defineSlot('/1015136/Billboard_970x250', [[970, 250], [728, 90]], 'div-gpt-ad-1319640445841-9').setCollapseEmptyDiv(true).addService(googletag.pubads()); window.cookieconsent_options = { Subsidy for the employees’ family expenses. Type of program: Social insurance and social assistance system. Both employers and employees must register and make contributions. googletag.pubads().setTargeting("Channel", "Business"); When moving to Portugal, an expat should be aware of the types of benefits he/she is entitled to and its […] In Portugal, salary is multiplied by 14 months (the 12 months in the year, the holiday pay and the Christmas bonus, each equivalent to a… 12 x €348.01= €4,176.12. 116/2001, Adminstrative arrangement: Decree nr. (1) Ability to work less than 80%. Tax revenue in Portugal stood at 34.9% of GDP in 2018. As a general rule, the employer pays the entire amount and deducts the worker’s share from his/her pay. (3) The Convention only be effective between those States when the Implementing Agreement enters into force for those States. (6) The 7% contribution rate due by employers will only be applied in the cases that the amount of rendered services varies between 50% and 80% for the same person with a business activity, or to the same Group. googletag.defineSlot('/1015136/MPU3_300x250', [300, 250], 'div-gpt-ad-1319640445841-5').setCollapseEmptyDiv(true).addService(googletag.pubads()); A 7% contribution rate is due by employers when the economic dependence of the self-employee varies between 50% and 80%. Portugal has reciprocal social security agreements with all EU countries plus Andorra, Argentina, Australia, Brazil, Cabo Verde, Canada, Iceland, Norway, Switzerland, Turkey, Uruguay, the USA and Venezuela. "target": "_blank", ", In these cases, the contribution rate is set at 25,2%. The most important revenue sources include the income tax, social security contributions, corporate tax and the value added tax, which are all applied at the national level. 119 CIRS) From 2014, the members of the governing board (MJG) are liable to social security contributions on the remuneration earned in any of the entities where they are members of the board without any maximum limit. Employers and domestic workers with remuneration declared to the Social Security Office in Portugal General Government revenue: total, current and capital (2016) in Portugal Contributions in total of Social Security revenue (%) Social security contributions are due on the remuneration obtained by: employees; board members; self-employed workers. In cases that the amount of rendered services represents more than 80%, the contribution rate is 10%. All compulsory social security contributions are tax deductible. 30/99, Adminstrative arrangement: Notice nr. 3/2012, Additional Contribution for Excessive Rotation. 228/2003, Adminstrative arrangement: Notice nr. Reporting Tax in Portugal. new Date().getTime(),event:'gtm.js'});var f=d.getElementsByTagName(s)[0], For company directors, there’s a monthly salary cap equal to 12 times the Portuguese minimum monthly wage (€348.01 in 2002), i.e. Retirement pension contributions. In Portugal, the Social Security Rate is a tax related with labor income charged to both companies and employees. They include: unemployment insurance benefits and supplements, accident, injury and sickness benefits, old-age, disability and survivors' pensions, family allowances, reimbursements for medical and hospital expenses or provision of … , once the exemption period has elapsed, employees must pay social security are. Members of the support provided by social security in Portugal in all the above,. 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