99/2020, of November 22 nd . 228/2003, Adminstrative arrangement: Notice nr. PwC refers to the PwC network and/or one or more of its member firms, each of which is a separate legal entity. Both employers and workers have to pay social security contributions. Old Age, Disability, and Survivors Regulatory Framework. Social Security Rate For Employees in Portugal averaged 10.98 percent from 1981 until 2020, reaching an all time high of 11 percent in 1990 and a record low of 10.50 percent in 1981. (7) May continue to make contributions in Portugal. your work situation (employed, self-employed, unemployed, posted abroad, working across the border from where you live, and so on); your country of residence - not your nationality. Social Security in Portugal. Portugal (Updated 2020) Sometime in your life you may be in need of the support provided by social security benefits. Employees from the above countries who are transferred to Portugal for a limited period only and who continue to contribute to their home country’s social security scheme, are exempt from paying contributions in Portugal for a period of one year. The 25.4 per cent rate is for compulsory cover only (retirement, disability, death and old age, maternity, paternity and adoption) while the 32 per cent rate includes compulsory cover plus ‘professional’ sickness, illness subsidies and other family benefits (calculated on the adopted income basis). The tax rate over personal income in 2015 (tax return 2016) was the following: To explain how to calculate the Portuguese personal income tax, I’m going to give you the example of a single person, without children, that earns 1500 € monthly of gross salary as an employee. Portugal social contributions was at level of 4,063.77 budgetary in 2017, down from 4,681.57 budgetary previous year, this is a change of 13.20%. In Portugal, the Social Security Rate is a tax related with labor income charged to both companies and employees. window.cookieconsent_options = { 127/2010, Adminstrative arrangement: Notice nr. (9) These are funds that ensure the employee’s entitlement to receive half of the termination payment amount. var child = document.getElementById("recaptcha_error"); (4) Namely expenses regarding nurseries, kindergarten, educational establishments, retirement homes and other services or social support establishment. "target": "_blank", 241/2011, Adminstrative arrangement: Notice nr. 1.6 Social security contributions The Portuguese social security system is financed by contributions of both employers and employees. 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. In 2020, the Portuguese monthly minimum wage is EUR 635. Which country you're covered by depends on 2 factors:. var parent = document.getElementById("tipafriend"); The contribution is payable upon the issue of a tax assessment by the social security authorities. // ]]> Current laws: 1980 (noncontributory scheme); 1980 (social pension); 1990 (survivor pension); 1994 (survivor benefits); 2007 (general scheme); 2007 (social security system); 2009 (disability); and 2009, 2010, and 2011 (contributory schemes). Submit annual declaration of income and deductions to … Voluntary registration can also be made by those who aren’t required to register. Reporting Tax in Portugal. When working or living abroad, you will have social security … (3) The exemption is applicable in the follow situations: } The Portuguese government has suspended the payment of companies’ social security contribution payments called the Single Social Tax (TSU) scheduled for Friday 20th, so they do not have to make the payment on this date, Ministry … Monthly social security contributions are to be submitted by the 10th and are to be paid until 20th of the following month. 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. } All compulsory social security contributions are tax deductible. else if (width < 768) { When moving to Portugal, an expat should be aware of the types of benefits he/she is entitled to and its […] (2) Provided that a fixed, variable or mixed remuneration provided to the worker is appropriate to his/her functions. document.getElementById('thankyou').className='msg hidden'; Social security contributions 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 hospital or medical services. Members of the governing board who perform management or administration functions are entitled to protection in the event of unemployment. Taxes in Portugal are levied by both the national and regional governments of Portugal. Social security contributions are due on the remuneration obtained by: employees; board members; self-employed workers. Social security contributions are compulsory payments paid to general government that confer entitlement to receive a (contingent) future social benefit. Self-employed persons pay contributions themselves. Both employers and workers have to pay social security contributions. "link": "https://www.justlanded.com/english/Common/Footer/Terms-Conditions/How-we-secure-your-personal-data-at-Just-Landed", 10-F/2020 of 26 March (“the Law”) was published in the country’s googletag.pubads().collapseEmptyDivs(); Contributions are limited to a maximum of six times the minimum monthly wage for those aged 55 or over. Learn about your legal duties towards the Institute for Social Security in Portugal, the contributions you need to … European Union Member States, EEA and Switzerland, Adminstrative arrangement: Notice nr. googletag.defineSlot('/1015136/Ribbon_990x45_NoAdsense', [990, 45], 'div-gpt-ad-1319640445841-2').setCollapseEmptyDiv(true).addService(googletag.pubads()); General information regarding social security contributions in Portugal We would like to ensure all our self-employed understand the current law on social security and how the contributions are calculated and reported. At the same time, decree-law no. 116/2001, Adminstrative arrangement: Decree nr. Occasional medical assistance/hospitalisation subsidies. } googletag.pubads().setTargeting("JLCountry", "Portugal"); 379/2007, Adminstrative arrangement: Notice nr. Old Age, Disability, and Survivors Regulatory Framework. In addition, social security agreements may “totalise” your periods of contributions or residence in Portugal and in your home country. (2) Exemption for a period of 3 years. While employed workers’ contributions are topped up by payments from their employers, those who are self-employed have to pay the full contribution themselves. (function(w,d,s,l,i){w[l]=w[l]||[];w[l].push({'gtm.start': This obligation is only applicable with respect to self-employee’s that has the obligation to contribute to the social security as such and with respect to self-employee’s with an annual income above 6 x IAS (€ 2,614.56, considering the IAS in force in 2019). googletag.pubads().enableSingleRequest(); We are therefore sending this … 800-290 029) and a comprehensive website (in Portuguese only), which includes downloadable documents and forms (www.seg-social.pt ). However, those aged under 55 may choose to pay social security contributions based on their actual gross salary, if it exceeds the above limit. The Portuguese government pays for healthcare coverage while the employee pays for other benefits including maternity, old-age pensions and disability. Portugal: Social security contributions to be cut to help companies. switch to the social security system of your host country and pay contributions there or; apply for an extension of your social security cover and remain covered in your home country. Subsidy for the employees’ family expenses. Contribution Payments A new law in Portugal offers hard-pressed employers and self-employed individuals some social security relief. In these cases, the contribution rate is set at 25,2%. If you are self-employed, you are responsible for making your own social security contributions. (1) This period may be extended, taking into consideration the provisions of the applicable agreement. var child = document.getElementById("tipafriend-captcha"); googletag.enableServices(); It provides benefits for health care, sickness, retirement, disability, death and old age, maternity, paternity and adoption. However, once the exemption period has elapsed, employees must pay social security contributions in Portugal. Self-employed individuals may choose to pay contributions under the mandatory regime (25.4 per cent) or under an enlarged regime (32 per cent). Social Security in Portugal. To read more about the cookies we use and to change your settings see our", Discounts granted to the workers for the acquisition of shares from the own company. First law: 1935 (1919 legislation not implemented). 'https://www.googletagmanager.com/gtm.js?id='+i+dl;f.parentNode.insertBefore(j,f); EU Social Security Survey EU Social Security Survey EUR 100,00 per annum EUR 50,000 per annum EUR 25,000 per annum Average national salary per annum Minimal national salary per annum 0 20,000 40,000 60,000 80,000 100,000 120,000 140,000 Czech Republic 2016 Net Income of EE (gross – tax – ee soc) Tax Employee* Employer* if (typeof(child) != 'undefined' && child != null) parent.removeChild(child); googletag.defineSlot('/1015136/MPU2_300x250', [300, 250], 'div-gpt-ad-1319640445841-4').setCollapseEmptyDiv(true).addService(googletag.pubads()); there’s no earnings cap), while contributions for the self-employed are calculated on an amount of between 1 and 12 times the minimum national wage, as chosen by the individual. [CDATA[ Employer rate (plus a professional contingency rate depending on the company activities) is 29.9 percent plus a percentage to cover labor accidents and illness (percentage depends on the activities) and employee rate (indefinite contracts) is 6.35 percent. 30/99, Adminstrative arrangement: Notice nr. The self-employed may reduce their contribution base without restriction; however, they may increase their contribution base only by one bracket, once a year, provided they’re under 55 years of age. The department of social security in Portugal has a free telephone hotline ( linha verde) for information and enquiries operating Monday to Friday from 9am to 7pm (Tel. In all the above situations, this benefit should have a general character. function hide_thankyou () { Members of the governing board who perform management or administration functions are entitled to protection in the event of unemployment. Since 1 January 2019 there has been a new reporting obligation for self-employed persons in Portugal. accommodation or food; unsociable hours payments (e.g. })(window,document,'script','dataLayer','GTM-MQS989'); The social security ( segurança social or caixa) system in Portugal is administered by the state and, in principle, applies to all individuals working in Portugal, either as employees or self-employed. The contribution rate applicable to these MGB is set at a rate of 34.75%, 23.75% and 11% to employers and MGB, respectively. Employers are required to contribute 23.75% for employment contracts. Companies also must make contributions for the members of their corporate boards. First law: 1919. Citizens of other countries should seek advice from their Embassy or Consulate regarding obtaining private insurance. all remuneration, including payments in cash or kind, e.g. LUSA. googletag.pubads().setTargeting("App", "www"); else if ((width < 1200) && (width >= 768)) { Monthly social security contributions are to be submitted by the 10th and are to be paid until 20th of the following month. (1) Ability to work less than 80%. Portugal (Updated 2020) Sometime in your life you may be in need of the support provided by social security benefits. Daily allowances (up to the limits applicable for Portuguese personal income tax purposes). pt Pagamento escalonado das contribuições para a segurança social devidas até 30.6.2003. en The Agreement of # April # on the collection and recovery of social security contributions. (1) Profit distributions. 119 CIRS) '&l='+l:'';j.async=true;j.src= © 2017 - 2021 PwC. 328/93 established a new social security regime for independent workers, which aims to provide the right to social security for self-employed individuals. ", In cases that the amount of rendered services represents more than 80%, the contribution rate is 10%. Thus, citizens can open a freelance activity and issue recibo verde until they have accumulated the time necessary to apply for a social security number for foreigners. This contribution has no ceiling. This regime is mandatory for individuals who develop any professional activity without an employment contract or any legal equivalent contract and are, consequently, covered by the social security … Contributions are made by both employer and employee. 451/2005, Adminstrative arrangement: Notice nr. By continuing to use our website, you agree to the use of cookies. Employees in early-retirement period, whose agreement foresees: Remain with the fixed rate at the time of the early-retirement. (3) The Convention only be effective between those States when the Implementing Agreement enters into force for those States. By collective dismissals, by the elimination of the position; by inability of the worker to perform the job; by expiry of the work contract; by termination by the employer or in lieu of notice; 3/2012, Additional Contribution for Excessive Rotation. Handicapped with undetermined term labour contract (1). Social Security in Portugal The Portuguese Social Security program provides benefits paid by contributions by the employer and employee, by the self-employed, and in specific cases by those that wish to enroll in the system. Contributions are limited to a maximum of six times the minimum monthly wage for those aged 55 or over. googletag.defineSlot('/1015136/MPU4_300x250', [300, 250], 'div-gpt-ad-1319640445841-8').setCollapseEmptyDiv(true).addService(googletag.pubads()); For company directors, there’s a monthly salary cap equal to 12 times the Portuguese minimum monthly wage (€348.01 in 2002), i.e. You may only submit the request if the Segurança Social (Social Security) is not directly aware of the elements necessary for the attribution of the exemption for the payment of contributions. (5) After the first twelve months of the beginning of activity. Social security contributions are due on the remuneration obtained by: (1) In case the company makes available transportation to its employees or the transportation expenses paid by the company do not exceed the value of the social pass. *Portuguese residents and non-resident employees in Portugal are liable for social security contributions at a rate of 11 percent on their gross remuneration (9.3 percent for board members who are not “Administradores” or “Gerentes”). 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 (%) googletag.cmd = googletag.cmd || []; RC3001-DGSS, together with the proof of monthly remuneration, if the self-employed worker is included in another social protection system. Portugal: Postponement of Social Security Contributions Due in November and December 2020 This is an exceptional and temporary measure related to the Covid-19 pandemic Decree-Law no. Daily allowances (up to the limits applicable for Portuguese personal income tax purposes). Both employers and employees must register and make contributions. if (typeof(child) != 'undefined' && child != null) parent.removeChild(child); googletag.pubads().setTargeting("Channel", "Business"); 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. Transportation expenses. As a general rule, the employer pays the entire amount and deducts the worker’s share from his/her pay. new Date().getTime(),event:'gtm.js'});var f=d.getElementsByTagName(s)[0], The general rate is 30.3%, which is applied on a monthly social security contribution base of between EUR 944.40 and EUR 4,070.10. Social security contributions are payable on the following: The following kinds of income are exempt from social security contributions: Employees’ contributions are based on their actual monthly income (i.e. By the termination of the employment contract prior to the end date, in case of labour contract with a term. As a general rule, the employer pays the entire amount and deducts the worker’s share from his/her pay. Tax year end is on 15th April. j=d.createElement(s),dl=l!='dataLayer'? var googletag = googletag || {}; These agreements allow for social security contributions paid in one country to be taken into account under the social security schemes of another country. The Institute for Social Security in Portugal is the gateway to the labour market. Check which country's social security contributions you must pay if you're a worker from the UK working in the EU, Norway, Iceland, Switzerland or Liechtenstein. Tax revenue in Portugal stood at 34.9% of GDP in 2018. 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. 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. (7) May continue to make contributions in Portugal. }; Indeed, a new mandatory quarterly declaration must be sent to the social security system in January, April, July and October, thus making it possible to calculate the amount of the contributions that the freelance must pay. 96/2010, Adminstrative arrangement: Notice nr. googletag.defineSlot('/1015136/Billboard_970x250', [[970, 250], [728, 90]], 'div-gpt-ad-1319640445841-9').setCollapseEmptyDiv(true).addService(googletag.pubads()); Type of program: Social insurance and social assistance system. (2) Applicable to Switzerland, Lichtenstein, Norway and Iceland. var width = window.innerWidth || document.documentElement.clientWidth; Social protection granted to self-employees who are entrepreneurs and owners of Individual Establishment of Limited Responsibility shall include the right to protection in the event of unemployment. Revenues from the Social Security Rate are an important source of income for the government of Portugal because they help to pay for many social programs including welfare, health care and many other benefits. EurLex-2. 80/2013, Adminstrative arrangement: Notice nr. RC3001-DGSS, together with the proof of monthly remuneration, if the self-employed worker is included in another social protection system. This obligation is only applicable with respect to self-employee’s that has the obligation to contribute to the social security as such and with respect to self-employee’s with an annual income above 6 x IAS (€ 2,573.40). } Social Security Rate For Employees in Portugal averaged 10.98 percent from 1981 until 2020, reaching an all time high of 11 percent in 1990 and a record low of 10.50 percent in 1981. (3) 50% reduction of the contribution due by employers for a maximum period of 5 (young people looking for first job) or 3 years (long-term unemployment), under certain conditions and requirements. By virtue of judicial declaration of the illegality of the dismissal; The Welfare Subsystem, which is a contributory scheme, covers most employees or similar workers and also the self-employed (although the latter are subject to special conditions). Indemnity for the termination of the labour contract. Indeed, a new mandatory quarterly declaration must be sent to the social security system in January, April, July and October, thus making it possible to calculate the amount of the contributions that the freelance must pay. If you are living in the country where you were born and satisfy the qualifying conditions, you will be entitled to receive support. en Social security contributions due up to 30.6.2003 to be paid in instalments. Under specific circumstances for persons of 47 years of age, the social security contribution base cannot be higher than EUR 2,077.80 per month. Since 1 January 2019 there has been a new reporting obligation for self-employed persons in Portugal. "theme": "light-top" 11.00%. All rights reserved. A social security cover extension is granted if a mutual agreement between the countries involved in your posting is reached and if the extension is in your interest. googletag.defineSlot('/1015136/MPU1_300x250', [300, 250], 'div-gpt-ad-1319640445841-3').setCollapseEmptyDiv(true).addService(googletag.pubads()); for shift work); remuneration resulting from suspension due to disciplinary action; compensation for unfair dismissal or termination of a contract; payments made towards the education of children (including university education); wedding gifts or irregular bonuses which are genuine ex-gratia payments; monthly expenses relating to board members or other professionals, the payment of which is required by contract; redundancy payments when made to all employees. ; You may not choose which country you will be covered by. Please see www.pwc.com/structure for further details. (4) These conventions are not yet in force. Social security for self-employed workers in Portugal. Social security benefits depend on the social security contributions paid. googletag.defineSlot('/1015136/MPU2_300x250', [300, 250], 'div-gpt-ad-1319640445841-4').setCollapseEmptyDiv(true).addService(googletag.pubads()); if (width >= 1200) { googletag.defineSlot('/1015136/MPU1_300x250', [300, 250], 'div-gpt-ad-1319640445841-3').setCollapseEmptyDiv(true).addService(googletag.pubads()); 12 x €348.01 = €4,176.12. googletag.pubads().setTargeting("Language", "en"); Do you have any comments, updates or questions on this topic? Employees of international organisations and diplomatic missions are usually exempt from paying social security contributions in Portugal. Social security contributions vary according to your profession and age, and whether you’re an employee or self-employed. "dismiss": "Got it! 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… oj4. googletag.defineSlot('/1015136/Mobile_Leaderboard', [320, 50], 'div-gpt-ad-1319640445841-6').setCollapseEmptyDiv(true).addService(googletag.pubads()); Tax year end is on 15th April. Employer contributions cover work-related accidents and occupational illness. 34.75%. Submit annual declaration of income and deductions to employers by 20th January (art. The Social Security Rate For Employees in Portugal stands at 11 percent. A summary of the main regular tax obligations arising for companies and individuals. If you are coming to work in Portugal you will need to register with this institution which guarantees a safety net in cases of unemployment, illness and retirement. }); Foreign nationals who have at least six months of tax contributions registered with Finanças in Portugal may also apply for a NISS. (4) With the minimum of one IAS (currently, in the amount of € 435.76). Type of program: Social insurance and social … 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). googletag.pubads().setTargeting("URL", "Social-Security"); "learnMore": "privacy & cookie policy. The Social Security Rate For Employees in Portugal stands at 11 percent. (5) This Convention is only in force in Bolivia, Brazil, Chile, Ecuador, El Salvador, Spain, Paraguay, Uruguay and Portugal. Self-employed persons pay contributions themselves. By. "message": "We use cookies to personalise content and ads, to provide social media features and to analyse our traffic. Reporting Tax in Portugal. Social Security in Portugal: all you need to know. You may only submit the request if the Segurança Social (Social Security) is not directly aware of the elements necessary for the attribution of the exemption for the payment of contributions. These rates apply on a monthly basis on an amount determined by the individual equal to between 1 and 12 times the Portuguese minimum monthly wage (€348.01 in 2002), i.e. Retirement pension contributions. you must have contributed for 40 years to avoid a pension rebate). 12 x €348.01= €4,176.12. Excluded income. Sickness benefit 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. (2) (8) May continue to make contributions in the country of origin, being temporarily exempt in Portugal. This exemption may be extended for a further year and in certain circumstances a five-year exemption may be granted. For other MGB the rate applicable is 20.3% and 9.3% to employers and MGB, respectively. On 26 March 2020, Portugal’s Decree-Law No. googletag.defineSlot('/1015136/MPU3_300x250', [300, 250], 'div-gpt-ad-1319640445841-5').setCollapseEmptyDiv(true).addService(googletag.pubads()); 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. Reciprocal Social Security Agreements. 47/88, Adminstrative arrangement: Decree nr. googletag.defineSlot('/1015136/Sponsorship_200x50_NoAdsense', [200, 50], 'div-gpt-ad-1319640445841-0').addService(googletag.pubads()); If you are living in the country where you were born and satisfy the qualifying conditions, you will be entitled to receive support. googletag.defineSlot('/1015136/Mobile_Leaderboard', [320, 50], 'div-gpt-ad-1319640445841-6').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%. An employer must notify the Portuguese social security authorities of the commencement of work of an employee and deduct contributions from his gross salary and make payments to the authorities by the 15th of the following month. "domain": "justlanded.com", Ask them here: Help your kids adapt abroad + Parent tips. (10) Additional contribution due to excessive labour rotation applicable to employers that exceed the annual average of fixed-term contracts index for each sector, regardless of their nature and purpose (this contribution will be applicable from January 1, 2020, onwards). 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 … googletag.cmd.push(function() { This is particularly helpful if your home country expects you to contribute for a long time (e.g. Its aim is to provide financial support to workers who lose their employment income in the following circumstances: sickness; maternity, paternity and adoption; unemployment; occupational diseases; invalidity; old age; and deat… //
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