Social Security contributions – Applying for a reduction for hiring the long-term unemployed
Employers entering into an open-ended employment contract with long-term unemployed persons may apply for a 50% reduction in the Social Security contribution rate.
This reduction apples only to the employer’s contribution, and not to the employee’s 11% contribution.
Long-term unemployed
The long-term unemployed are persons who have been registered with the Instituto do Emprego e Formação Profissional (Portuguese Employment and Vocational Training Institute) for 12 months or more.
Having had previously a fixed-term employment contract or having been self-employed for a period of less than 6 months, for a combined duration not exceeding 12 months, would not prevent someone from being regarded as long-term unemployed.
Service channels
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Online
Free of charge
Within 10 days of the start date of the employment contract
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Who can social Security contributions – Applying for a reduction for hiring the long-term unemployed?
When can you social Security contributions – Applying for a reduction for hiring the long-term unemployed?
- Within 10 days of the start date of the employment contract.
What is the period of reduced contributions for hiring the long-term unemployed?
What are the documents and requirements to social Security contributions – Applying for a reduction for hiring the long-term unemployed?
The employer is entitled to the reduction 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 employment contract of indefinite duration with the employee;
- it has, in the month in which it applies for the reduction, 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 a reduction for hiring the long-term unemployed?
Online