Portugal: extraordinary tax and amending the Labor Contract on the menu for the new government

Extraordinary tax.  The social-democratic center-right government run by Pedro Passos Coelho announced the introduction of an extraordinary tax on workers’ Christmas bonus.  Subject to taxation and social contributions, this bonus equals a 14th month of salary – the 13th being the summer vacation bonus.  Extraordinary taxation is not a measure included in the memorandum signed with the European Union and the IMF in order to put the Portuguese economy back on its feet in return for €78 billion.  The new Prime Minister, Pedro Passos Coelho, warned that he would go beyond the international requirements.  The extraordinary tax will amount to 50% of the 14th month for salaries higher than minimum wage (€485).  Nearly 3.4 million workers will be affected by this measure (5.6 million active workers).  The aim is to get €800M in the short run.  The modalities will de detailed soon.
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arned that he would go beyond the international requirements. The extraordinary tax will amount to 50% of the 14th month for salaries higher than minimum wage (€485). Nearly 3.4 million workers will be affected by this measure (5.6 million active workers). The aim is to get €800M in the short run. The modalities will de detailed soon.

Labor market. The Portuguese government wants to create a single Labor Contract replacing fixed-term contracts. the point is to create a new type or system

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