Special Early Retirement Regime for Individuals with Long Lasting Careers

New Legislation Enacted

Authors: Ricardo Grilo, Senior Associate & Gonçalo Machado Santos, Attorney — Garrigues Portugal SLP Sucursal

Decree-Law No. 126-B/2017 of October 6, 2017, establishes a special early retirement regime for individuals with long lasting careers, waiving any pension-related penalty for early retirement if the employee contributed to social security: (1) for 48 or more years; or (2) for 46 or more years and began contributing at 14 years old or less. The Decree also establishes new provisions to calculate the differentiated pension formation rates and the requisite minimum period of time to access the retirement pension.

Monthly Payment of Christmas and Vacations Allowances

New Legislation Enacted

Authors: Ricardo Grilo, Senior Associate & Gonçalo Machado Santos, Attorney — Garrigues Portugal SLP Sucursal

Under the newly approved Budget Law, employees from the private sector will benefit from the same regime applicable to civil servants and pensioners in the year of in 2018 concerning the payment of the Christmas and vacation allowances. Each payment will be made in one single installment. At this stage, the State Budget for the year of 2018 has not yet been enacted, although it is expected to occur very soon.