The Portuguese government is suspending the reform of the social contributions system. The plan to cut employers' contributions is maintained but the government wants "extensive dialogue with the social partners on the subject." The 7 percent increase in employees' contributions which should partly help bring the 13th month back for civil servants is cancelled. In return, fiscal pressure should considerable increase. The General Confederation of the Portuguese Workers (CGTP) called for a general strike on November 14. (Ref. 120582)
TSU won’t increase. The Single Social Tax (TSU) on incomes will not be amended in 2013, remaining at 11 percent instead of 18 percent had the government had its way. This additional social levy was supposed to help bring back on of the two public bonuses cancelled as part of the country’s financial recovery effort (Portugal is under financial supervision until 2014). This announcement together with that of a 5.75 percent cut to employers’ social contributions caused an unprecedented outcry,
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