Social Security contributions – Applying for an exemption for hiring workers already employed by an employer on a fixed-term contract
Employers who enter into an open-ended employment contract with employees who already work for them under a fixed-term contract may apply for an exemption from social security contributions.
This exemption apples only to the employer’s contribution, and not to the employee’s 11% contribution.
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Within 10 days of the start date of the employment contract
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Who can social Security contributions – Applying for an exemption for hiring workers already employed by an employer on a fixed-term contract?
Employers.
When can you social Security contributions – Applying for an exemption for hiring workers already employed by an employer on a fixed-term contract?
Within 10 days of the start date of the employment contract.
What is the exemption period for hiring workers already employed by the employer under a fixed-term employment contract?
The maximum exemption period is 3 years.
What are the documents and requirements to social Security contributions – Applying for an exemption for hiring workers already employed by an employer on a fixed-term contract?
The employer is entitled to the exemption if all of the following conditions are met:
the employer is properly constituted and duly registered;
it has fulfilled its obligations relating to tax and social security contributions with the Social Security and Tax and Customs Authorities;
it is not late in paying wages;
it is entering into a full-time or part-time open-ended employment contract with the employee;
it has, in the month in which it applies for the exemption, a total number of employees higher than the average number of employees registered in the 12 months immediately before applying.
How social Security contributions – Applying for an exemption for hiring workers already employed by an employer on a fixed-term contract?
Decree-Law No 72/2017 of 21 June – Establishing incentives for hiring young people seeking their first job and the long-term and very long-term unemployed.