Access to early retirement pensions
Decree-Law 10/2016 of March 8 2016 has been approved. This new law re-establishes the 2015 transitional rules on access to early retirement pensions. As of March 9 2016, the right to early access to retirement pensions is limited to beneficiaries that are at least 60 years old and have at least 40 calendar years of registration of relevant income.
However, the right to receive an early retirement pension also applies to beneficiaries aged 55 to 59 with 30 or more calendar years of registration of relevant income, provided that they applied for an early retirement pension by March 8 2016 (inclusive).
Following the increase in the guaranteed minimum monthly salary (€530), the government has also approved Decree-Law 11/2016 of March 8 2016. Intended to support employment, this law creates an exceptional measure which reduces by 0.75% the social security contribution rate payable by employers regarding the salaries of their employees from February 2016 to January 2017 (including values due as holiday and Christmas bonuses).
Employers will have the right to the reduced social security rate only if they meet the following conditions:
- The subject employee is bound to the employer by:
- a full-time employment contract; or
- a part-time employment contract entered into before January 1 2016;
- As from December 31 2015, the employee has earned a base monthly salary of €505 to €530 or a proportional value in the case of part-time contracts; and
- The employer's social security obligations are in good order.
Law 8/2016 of April 1 2016 was the 10th amendment to the Employment Code. It reinstated the following national public holidays:
- Corpus Christi (a moveable feast);
- Implantação da República (October 5);
- All Saints' Day (November 1); and
- Restauração da Independência (December 1).
On the same date, Ministerial Order 67/2016 of April 1 2016 was also published. This order raises the normal age of access to retirement pensions in 2017 to 66 years and three months. The 2016 normal age for access to retirement pensions is 66 years and two months.
For further information on this topic please contact Filipe Azoia at AAMM Sociedade de Advogados RL by telephone (+351 211 940 538) or email (email@example.com). The AAMM website can be accessed at www.aamm.pt.
This article was first published by the International Law Office, a premium online legal update service for major companies and law firms worldwide. Register for a free subscription.