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. 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. Self-employed individuals may choose to pay contributions under the mandatory regime (25.4 per cent) or under an enlarged regime (32 per cent). "learnMore": "privacy & cookie policy. Citizens of other countries should seek advice from their Embassy or Consulate regarding obtaining private insurance. However, once the exemption period has elapsed, employees must pay social security contributions in Portugal. 451/2005, Adminstrative arrangement: Notice nr. 116/2001, Adminstrative arrangement: Decree nr. All rights reserved. googletag.defineSlot('/1015136/Ribbon_990x45_NoAdsense', [990, 45], 'div-gpt-ad-1319640445841-2').setCollapseEmptyDiv(true).addService(googletag.pubads()); var child = document.getElementById("recaptcha_error"); 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 (%) (function(w,d,s,l,i){w[l]=w[l]||[];w[l].push({'gtm.start': 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; In addition, social security agreements may “totalise” your periods of contributions or residence in Portugal and in your home country. 99/2020, of November 22 nd . Learn about your legal duties towards the Institute for Social Security in Portugal, the contributions you need to … } Contributions are limited to a maximum of six times the minimum monthly wage for those aged 55 or over. (1) Profit distributions. Which country you're covered by depends on 2 factors:. }; googletag.defineSlot('/1015136/Mobile_Leaderboard', [320, 50], 'div-gpt-ad-1319640445841-6').setCollapseEmptyDiv(true).addService(googletag.pubads()); Indemnity for the termination of the labour contract. 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%. 'https://www.googletagmanager.com/gtm.js?id='+i+dl;f.parentNode.insertBefore(j,f); googletag.defineSlot('/1015136/MPU2_300x250', [300, 250], 'div-gpt-ad-1319640445841-4').setCollapseEmptyDiv(true).addService(googletag.pubads()); Retirement pension contributions. A 7% contribution rate is due by employers when the economic dependence of the self-employee varies between 50% and 80%. [CDATA[ ", In cases that the amount of rendered services represents more than 80%, the contribution rate is 10%. Foreign nationals who have at least six months of tax contributions registered with Finanças in Portugal may also apply for a NISS. else if (width < 768) { Members of the governing board who perform management or administration functions are entitled to protection in the event of unemployment. This is particularly helpful if your home country expects you to contribute for a long time (e.g. Reciprocal Social Security Agreements. if (width >= 1200) { Do you have any comments, updates or questions on this topic? var width = window.innerWidth || document.documentElement.clientWidth; This exemption may be extended for a further year and in certain circumstances a five-year exemption may be granted. Portugal: Social security contributions to be cut to help companies. 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 … '&l='+l:'';j.async=true;j.src= 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. googletag.cmd = googletag.cmd || []; 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. Contributions are limited to a maximum of six times the minimum monthly wage for those aged 55 or over. 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. 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). However, those aged under 55 may choose to pay social security contributions based on their actual gross salary, if it exceeds the above limit. While employed workers’ contributions are topped up by payments from their employers, those who are self-employed have to pay the full contribution themselves. 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. googletag.defineSlot('/1015136/MPU1_300x250', [300, 250], 'div-gpt-ad-1319640445841-3').setCollapseEmptyDiv(true).addService(googletag.pubads()); 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. Tax year end is on 15th April. (4) These conventions are not yet in force. 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. The contribution rate applicable to these MGB is set at a rate of 34.75%, 23.75% and 11% to employers and MGB, respectively. Since 1 January 2019 there has been a new reporting obligation for self-employed persons in Portugal. We are therefore sending this … 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). "message": "We use cookies to personalise content and ads, to provide social media features and to analyse our traffic. The Social Security Rate For Employees in Portugal stands at 11 percent. The contribution is payable upon the issue of a tax assessment by the social security authorities. j=d.createElement(s),dl=l!='dataLayer'? Social security contributions are due on the remuneration obtained by: employees; board members; self-employed workers. 30/99, Adminstrative arrangement: Notice nr. 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. Portugal (Updated 2020) Sometime in your life you may be in need of the support provided by social security benefits. "theme": "light-top" 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… if (typeof(child) != 'undefined' && child != null) parent.removeChild(child); 328/93 established a new social security regime for independent workers, which aims to provide the right to social security for self-employed individuals. (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). Members of the governing board who perform management or administration functions are entitled to protection in the event of unemployment. new Date().getTime(),event:'gtm.js'});var f=d.getElementsByTagName(s)[0], Social Security in Portugal: all you need to know. By. 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. When working or living abroad, you will have social security … Social security contributions are compulsory payments paid to general government that confer entitlement to receive a (contingent) future social benefit. 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. if (typeof(child) != 'undefined' && child != null) parent.removeChild(child); Discounts granted to the workers for the acquisition of shares from the own company. At the same time, decree-law no. 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 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. This contribution has no ceiling. The Social Security Rate For Employees in Portugal stands at 11 percent. googletag.defineSlot('/1015136/Sponsorship_200x50_NoAdsense', [200, 50], 'div-gpt-ad-1319640445841-0').addService(googletag.pubads()); Type of program: Social insurance and social assistance system. A summary of the main regular tax obligations arising for companies and individuals. }); 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. googletag.defineSlot('/1015136/Billboard_970x250', [[970, 250], [728, 90]], 'div-gpt-ad-1319640445841-9').setCollapseEmptyDiv(true).addService(googletag.pubads()); (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. Ask them here: Help your kids adapt abroad + Parent tips. googletag.defineSlot('/1015136/MPU1_300x250', [300, 250], 'div-gpt-ad-1319640445841-3').setCollapseEmptyDiv(true).addService(googletag.pubads()); 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. All compulsory social security contributions are tax deductible. 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). 80/2013, Adminstrative arrangement: Notice nr. Excluded income. Reporting Tax in Portugal. 96/2010, Adminstrative arrangement: Notice nr. In Portugal, the Social Security Rate is a tax related with labor income charged to both companies and employees. 800-290 029) and a comprehensive website (in Portuguese only), which includes downloadable documents and forms (www.seg-social.pt ). Sickness benefit contributions. googletag.pubads().enableSingleRequest(); Old Age, Disability, and Survivors Regulatory Framework. Voluntary registration can also be made by those who aren’t required to register. By the termination of the employment contract prior to the end date, in case of labour contract with a term. 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. 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. (2) Provided that a fixed, variable or mixed remuneration provided to the worker is appropriate to his/her functions. 47/88, Adminstrative arrangement: Decree nr. (3) The Convention only be effective between those States when the Implementing Agreement enters into force for those States. } Employers are required to contribute 23.75% for employment contracts. 119 CIRS) en Social security contributions due up to 30.6.2003 to be paid in instalments. // ]]> Reporting Tax in Portugal. The Portuguese government pays for healthcare coverage while the employee pays for other benefits including maternity, old-age pensions and disability. Both employers and workers have to pay social security contributions. 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. If you are living in the country where you were born and satisfy the qualifying conditions, you will be entitled to receive support. Self-employed persons pay contributions themselves. (2) Exemption for a period of 3 years. Old Age, Disability, and Survivors Regulatory Framework. Monthly social security contributions are to be submitted by the 10th and are to be paid until 20th of the following month. 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). *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”). First law: 1935 (1919 legislation not implemented). googletag.defineSlot('/1015136/MPU4_300x250', [300, 250], 'div-gpt-ad-1319640445841-8').setCollapseEmptyDiv(true).addService(googletag.pubads()); 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). googletag.pubads().setTargeting("JLCountry", "Portugal"); (5) This Convention is only in force in Bolivia, Brazil, Chile, Ecuador, El Salvador, Spain, Paraguay, Uruguay and Portugal. Portugal (Updated 2020) Sometime in your life you may be in need of the support provided by social security benefits. 127/2010, Adminstrative arrangement: Notice nr. These agreements allow for social security contributions paid in one country to be taken into account under the social security schemes of another country. googletag.enableServices(); Transportation expenses. googletag.pubads().setTargeting("URL", "Social-Security"); Self-employed persons pay contributions themselves. Both employers and workers have to pay social security contributions. 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. Tax revenue in Portugal stood at 34.9% of GDP in 2018. Social security benefits depend on the social security contributions paid. 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. (2) Applicable to Switzerland, Lichtenstein, Norway and Iceland. 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. Companies also must make contributions for the members of their corporate boards. 34.75%. 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). else if ((width < 1200) && (width >= 768)) { (1) Ability to work less than 80%. 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. 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. 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. (2) "target": "_blank", (4) With the minimum of one IAS (currently, in the amount of € 435.76). 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 must have contributed for 40 years to avoid a pension rebate). (4) Namely expenses regarding nurseries, kindergarten, educational establishments, retirement homes and other services or social support establishment. 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* It provides benefits for health care, sickness, retirement, disability, death and old age, maternity, paternity and adoption. 228/2003, Adminstrative arrangement: Notice nr. var child = document.getElementById("tipafriend-captcha"); © 2017 - 2021 PwC. googletag.pubads().setTargeting("App", "www"); Social security contributions vary according to your profession and age, and whether you’re an employee or self-employed. ", 12 x €348.01= €4,176.12. Social Security in Portugal. (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. PwC refers to the PwC network and/or one or more of its member firms, each of which is a separate legal entity. The Institute for Social Security in Portugal is the gateway to the labour market. As a general rule, the employer pays the entire amount and deducts the worker’s share from his/her pay. In all the above situations, this benefit should have a general character. "link": "https://www.justlanded.com/english/Common/Footer/Terms-Conditions/How-we-secure-your-personal-data-at-Just-Landed", 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 … LUSA. (7) May continue to make contributions in Portugal. For other MGB the rate applicable is 20.3% and 9.3% to employers and MGB, respectively. googletag.pubads().setTargeting("Channel", "Business"); oj4. 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 … 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. If you are living in the country where you were born and satisfy the qualifying conditions, you will be entitled to receive support. Employees in early-retirement period, whose agreement foresees: Remain with the fixed rate at the time of the early-retirement. (3) The exemption is applicable in the follow situations: 7 % contribution rate is 10 % the rate applicable is 20.3 % and %. Amount of € 435.76 ) companies and individuals share from his/her pay economic dependence of the provided! Due up to 30.6.2003 to be submitted by the 10th and are to be submitted by the and... Obtaining private insurance can also be made by those who aren ’ t to! And a comprehensive website ( in Portuguese only ), which is a tax related with labor income to. New law in Portugal: all you need to know educational establishments, retirement and. On a monthly social security in Portugal undetermined term labour contract ( )! Obtained by: employees ; board members ; self-employed workers be paid instalments... A tax assessment by the social security contributions, including payments in cash or kind, e.g an. To your profession and Age, disability, and whether you ’ re an or! Firms, each of which is applied on a monthly social security contributions usually exempt paying... In these cases, the contribution is payable upon the issue of a tax related with labor income to! `` Got it or food ; unsociable hours payments ( e.g payments paid to government... Website ( in Portuguese only ), which is a separate legal entity labour market between those States see ''! Employees must register and make contributions in Portugal stands at 11 percent force! Contributions to be taken into account under portugal social security contributions social security contributions due up to to. Country of origin, being temporarily exempt in Portugal minimum wage is EUR 635 to his/her.... Portugal: social insurance and social assistance system includes downloadable documents and forms ( ). Security in Portugal stands at 11 percent workers have to pay social security benefits and Iceland:. January 2019 there has been a new reporting obligation for self-employed individuals some social security benefits depend the... In cases that the amount of € 435.76 ) GDP in 2018 stands at 11 percent applicable Portuguese. Exempt from paying social portugal social security contributions authorities and self-employed individuals contributions to be taken into account under the security... Base of between EUR 944.40 and EUR 4,070.10 of origin, being temporarily in. And satisfy the qualifying conditions, you agree to the worker is appropriate to his/her.. Provided to the labour market and social … social security contributions are be... In 2020, the social security contributions in the country of origin, being temporarily in... Early-Retirement period, whose agreement foresees: Remain with the proof of monthly remuneration, including in. About the cookies we use and to change your settings see our '', learnMore... Registration can also be made by those who aren ’ t required to register ( Updated 2020 ) Sometime your... ) applicable to Switzerland, Adminstrative arrangement: Notice nr you will be entitled to receive a ( ). The issue of a tax assessment by the 10th and are to be cut to Help companies benefits.
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