Background information

The Decree-Law 220/2006 of 3 November create the partial unemployment benefit (subsidio de desemprego parcial). This measure emerges from the need to sustain the increase in employment rates and the maintenance of low unemployment rates, within the framework of the objectives defined in the Lisbon Strategy, and, consequently, of the National Action Programme for Growth and Employment, where is part of the National Employment Plan.

Content of measure

The partial unemployment benefit allowance is equal to the difference between the standard monthly unemployment insurance benefit (increased by 35%), and the amount of earnings resulting from the activity as employee. In case of self-employed activity, the monthly allowance corresponds to the difference between the amount of the unemployment insurance benefit increased by 35%, and 1/12 of the annual taxable income resulting from this self-employed activity.

Are eligible for this benefit the beneficiaries receiving or claiming unemployment benefit who begin to work as employees with a part-time contract or as self-employed.

For example: A beneficiary who receives €500 unemployment benefit and will work part-time with a remuneration of €350.

• Calculate 35% for the unemployment allowance €500 x 0.35 = €175.
• Add this value to the amount of unemployment benefits €175 + €500 = €675.
• Subtract the amount of salary for part-time work. The result is the monthly amount of the partial unemployment benefit that the beneficiary is entitled to €675 - €350 = €325.

The duration of the partial unemployment benefit is the same of the part-time contract or as self-employed, but is limited to the time for which it is expected to receive the unemployment benefit.

Partial unemployment benefit can be enhanced through compensation payments and pensions for occupational risks.

Use of measure

Over the last years the number of unemployed people who have benefited from this measure have been decreasing: in 2023, 8,640 people have benefited from partial unemployment benefit, 1,941 less than in 2021 and 2,301 less than in 2019 (representing a decrease of 18% and 21%, respectively). In the first nine months of 2024, 7,864 unemployed people have benefited from this measure.

Target groups

Workers	Businesses	Citizens
Employees in standard employment Self-employed Unemployed	Does not apply to businesses	Does not apply to citizens

Actors and funding

Actors	Funding
National government Public employment service	National funds

Social partners

Social partners' role in designing the measure and form of involvement:

	Trade unions	Employers' organisations
Role	Unknown	Unknown
Form	Not applicable	Not applicable

Social partners' role in the implementation, monitoring and assessment phase:

• Unknown
• Main level of involvement: Unknown

Involvement

Unknown

Views and reactions

Unknown

Sources

• 03 November 2006: Decree-Law 220/2006 of 3 November (dre.pt)
• 03 October 2024: Practical Guide – Partial unemployment benefit (www.seg-social.pt)