Background information

Decree Law 12/2013 of 25 January defines the legal framework on unemployment protection applicable to self-employed professionals with an entrepreneurial activity and to members of corporate bodies.

This regulation creates the partial unemployment benefit for termination of activity. It is a benefit in cash attributed to economically dependent self-employed.

Content of measure

The partial unemployment benefit for termination of activity is a benefit in cash attributed to the self-employed in situations where the worker, after involuntary termination of the contract of service with the contracting entity, retains a professional activity whose monthly income is less than the amount of the benefit for termination of activity (maximum of 2.5 times the Social Support Index, which is €509,26 in 2024 – 2.5 x €509,26 = €1,273.15).

The entitlement period depends on the age of the beneficiary and the number of months with registered earnings for social security purposes (at least 24 months are required); more specifically, entitlement ranges from 330 days for beneficiaries aged under 30 years, to 540 days for beneficiaries aged 50 years or older.

The partial benefit for termination of activity corresponds to the difference between the unemployment benefit the worker is entitled plus 35%, and the pay for the new part-time job.

The benefit for termination of activity will be determined in line with the following cumulative rules:

• Involuntary termination of the service contract with the contracting entity.
• 360 days of activity as a self-employed worker with registered payslips for a period of 24 months immediately prior to the date of termination of activity.
• The self-employed worker has been considered economically dependent of contracting entities for the civil year immediately prior to the date of termination of activity.
• The self-employed worker has been considered economically dependent at the moment of termination of activity.
• Registration in the Employment Centre of the beneficiary’s area of residence.

Use of measure

In 2023, 65 self-employed people benefited of this measure, representing an decrease of 18% compared to 2019 and of 4.4% to 2022.

Between January and September 2024, 56 self-employed people benefit form partial benefit of termination of activity.

Target groups

Workers	Businesses	Citizens
Self-employed	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	Consulted	Consulted
Form	Consultation through tripartite or bipartite social dialogue bodies	Consultation through tripartite or bipartite social dialogue bodies

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

• Social partners jointly
• Main level of involvement: Peak or cross-sectoral level

Involvement

The trade union confederations - General Confederation of Portuguese Workers - National Trades Union (Confederação Geral dos Trabalhadores Portugueses - Intersindical Nacional – CGTP-IN) and General Workers’ Union (União Geral de Trabalhadores - UGT) and the four employer confederations Confederation of Portuguese Industry (Confederação Empresarial de Portugal - CIP), Portuguese Confederation of Farmers (Confederação dos Agricultores de Portugal - CAP), Portuguese Trade and Services Confederation (Confederação do Comércio e Serviços de Portugal - CCP) and Portuguese Confederation of Tourism (Confederação do Turismo Português - CTP) represented at the tripartite Standing Committee for Social Concertation have been consulted.

Views and reactions

Unknown

Sources

• 25 January 2013: Decree Law 12/2013 of 25 January (dre.pt)
• 02 July 2018: Decree Law 53_2018 of 2 July (dre.pt)
• 03 January 2022: Practical Guide - Partial benefit for termination of activity (www.seg-social.pt)