Portugal: employers’ social contribution payments lowered by 0.75% for employees on the minimum wage and early retirement is frozen

The Portuguese government has lowered employers’ social contributions payments by 0.75% for employees on the minimum wage, and for a period of one year. The TSU, or Unique Social Tax will move from 23.75% to 23.00%. The Council of Ministers adopted this measure on 18 February in an attempt to compensate for having raised the minimum wage on 01 January 2016. The government has also decided to freeze early retirement, which had initially been suspended in 2012 but which had been reinstated in 2015.
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A lower TSU. The employers’ portion of the Unique Social Tax will be lowered by 0.75% to reach 23.00% of employee salary. The government’s decision is by way of compensating for the 5% rise in the minimum wage (SMN) that it unilaterally decided in January 2016 (c.f. article No. 9436). From 01 January 2016 the national minimum wage rose from €505 gross per month to €530. For Vieira Silva, the Labor Minister the move is godd for employees who earn more, good for business who operate in...

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