Ordinance nr. 286-A/2013, of September 16, was published as Supplement to the Portuguese official gazette. This Ordinance provides for the creation of the Employment Incentive, which consists in the allocation of financial support to employers who, after 1 October 2013, enter into employment contracts regulated by the Labour Code.
Employment contracts of very short duration and entities whose nature does not justify the granting of that financial support will not be covered by this regime.
The broad lines of this regime are the following:
Amount of the Incentive
- 1% of the monthly salary of the employee, by reference to the amount paid by the employer and relevant as basis for Social Security contributions.
- Having the contributory situation regularised before the Social Security and the Tax Authorities;
- Having a regularised situation regarding any refunds in the framework of the European Social Fund;
- Not being in default in respect of any financial support granted by IEFP;
- Not being in default in respect of payments due under the legal regime of the work compensation fund, the equivalent mechanism and the work compensation guarantee fund;
- Having organised accounts, when applicable.
Duration of the Incentive
- Until September 30, 2015 or until the date of termination of the employment contract, whichever comes first.