New Rules on the Retirement Fund Certificates

New Legislation Enacted

By Decree-Law no. 82/2018 of October 16, 2018, and effective November 1, 2018, employers may contribute to employees’ Retirement Fund Certificates, as long as the employees have registered with the Public Capitalization Regime (PCR). The PCR is a non-mandatory public retirement savings system into which employees contribute on a monthly basis, to create a financial complement to other pensions (such as retirement or disability). Employers can now contribute into these individual accounts.

Early Retirement for Former CGA Subscribers

New Legislation Enacted

By Decree-Law no. 77/2018 of October 12, 2018, and effective on November 1, 2018, all employees formerly enrolled in the Caixa Geral de Aposentações (CGA) (i.e., public employees' pension system), who contribute or have contributed to the CGA and ceased the exercise of the functions that justified their discounts to that entity, may access early retirement on equal footing as the beneficiaries of the general Social Security Regime. Various conditions apply, including whether they subscribed to the CGA for at least five years and cannot access another social security regime.

Minimum Monthly Wage for 2019

New Legislation Enacted

Effective January 1, 2019, the minimum monthly wage is increased to €600. The minimum monthly wage determined by law prevails over any inferior wage established in employment contracts or in collective bargaining agreements. Therefore, any employee currently receiving a wage inferior to €600 will be entitled to have the wage updated, at least, to that amount. In case of part-time employees, the minimum monthly wage is calculated proportionally.

Amendments to Early Retirement Legal Framework

New Legislation Enacted

Decree-Law no. 119/2018, of December 27, 2018, reduced the age upon which employees may request their early retirement and lowered the cuts currently in force for retirement pensions. As of January 1, 2019, employees who are at least 63 years old and with 40 or more years of contributions to Social Security may access early retirement. As of October 1, 2019, early retirement is available for beneficiaries who are at least 60 years old and with 40 or more years of contributions to Social Security. Other rules apply for those not meeting all the legal requirements under these amendments.