Eurofound's EU PolicyWatch collates information on the responses of government and social partners to the COVID-19 crisis, the war in Ukraine, rising inflation, as well as gathering examples of company practices aimed at mitigating the social and economic impacts.
Factsheet for measure PT-2020-12/432 – Updated – measures in Portugal
Country | Portugal , applies nationwide |
Time period | Temporary, 15 March 2020 – 31 December 2021 |
Context | COVID-19 |
Type | Legislations or other statutory regulations |
Category |
Income protection beyond short-time work
– Extensions of income support to workers not covered by any kind of protection scheme |
Author | Heloisa Perista and Maria da Paz Campos Lima (CESIS) |
Measure added | 09 April 2020 (updated 20 September 2022) |
The ‘Extraordinary support for the reduction of self-employed economic activity’ - as a result of the COVID-19 pandemic - was established by Decree-Law no. 10-A/2020 of 13 March (article 26). It established the right to financial assistance – up to a maximum of six months payment – for self-employed workers who perform exclusively activities under the self-employed regime (and that are not pensioners), under certain conditions, when they had to stop completely their activity on the grounds of the economic impact of COVID-19 pandemic.
The Decree Law no. 12-A/2020 of 6 April - that prorogue the ‘state of emergency’ – updated the provisions defining that financial supports applies also in case of partial reduction of activity and introduced two ceilings for the maximum amount of financial support depending of self-employed workers previous earnings. Moreover, this amendment extends also the extraordinary support to managing partners of companies, as well as other members of bodies, without employees, under certain conditions.
The amendments introduced in May 2020 extended to managing partners or similar entities with employees with a turnover of less than €80,000 (Decree Law 20-C / 2020 of 7 May) and created two additional measures: the ‘extraordinary measure to encourage professional activity” aimed at self-employed workers with records of contributions below those required to access the ‘extraordinary support' and the ‘support for social self-employed in unprotected situations’, aimed at informal workers.
Finally the amendments introduced in August 2020 extended the allowance to self-employed workers having also a labour contract under certain conditions (Law 31/2020 of 11 August).
Article 2 of Decree Law no. 12-A/2020 of 6 April establishes: Extraordinary support for the reduction of self-employed economic activity takes the form of support financial assistance to workers covered exclusively by the self-employed regime who are not pensioners, subject to compliance with contributory obligations in at least 3 consecutive months or six months interpolated for at least 12 months:
During the period of application of this measure, the self-employed person is entitled to financial support lasting one month, extendable monthly, up to a maximum of six months, corresponding to:
Financial support is paid from the month following the submission of the application. The support provided is granted, with the necessary adaptations, to partners - managers of companies, as well as members of statutory bodies of foundations, associations or cooperatives with functions equivalent to those, without employees that, in the previous year, had invoices with less than €60,000.
The following updates to this measure have been made after it came into effect.
06 July 2021 |
The decree Law 56-A/2021 of 6 July 2021 amends the Decree Law 6-E/2021 providing that self-employed workers, individual entrepreneurs, with and without organized accounting and regardless of having dependent workers, managers, and members of statutory bodies with management functions, whose activities have been suspended or terminated, the right to resort to extraordinary support for the reduction of activity for the period of suspension of activities or closure of facilities and establish by legislative or administrative determination of a governmental source, in the context of measures applied within the scope of the COVID-19 disease pandemic, pursuant to article 26 of Decree -Law No. 10 -A/2020; the support corresponding to the extraordinary measure to encourage professional activity is granted under the conditions provided for in article 28-A of Decree-Law No. 10-A/2020. |
07 April 2021 |
The amendment imposed by the Assembly of the Republic to article 3 of Decree Law 6 -E/2021, of 15 January, introduced by Law No. 15/2021 established a safeguard clause to protect workers defining that for the purposes of calculating the support granted under the extraordinary support for reduction of economic activity of the self-employed workers and the extraordinary measure of incentive to professional activity, it should be considered the monthly average annual income of the worker in the year 2019. |
15 January 2021 |
Decree Law 6-E/2021 of 15 January 2021 (article 3) prolonged the right to resort to the extraordinary support for reduction of economic activity for the period of suspension of activities or closure of facilities and establishments by legislative or administrative determination of the government during the state of emergency. |
13 July 2020 |
The ‘Extraordinary support for the reduction of self-employed economic activity’ - as a result of the COVID-19 pandemic - established by Decree-Law 10-A/2020 of 15 March (article 26) was regulated by the Order 94-A/2020, of 16 April. For the calculation of the support, the remuneration considered corresponds:
|
Information by the Ministry of Labour, Solidarity and Social Security (MTSS) - April 2010 'COVID-19 | Informação relativa a famílias e empresas no âmbito do MTSSS': Estimated that on 7 April 2020, around 117,000 independent workers were with reduced activity.
Information by the GEP / Ministry of Labour, Solidarity and Social Security (MTSSS) - 7 July 2020:
The information 'Indicadores COVID-19' published by the Strategy Planning Office of the Ministry of Labour, Solidarity and Social Security (GEP/MTSSS) provides to the number of independent workers that applied for this support. See
According to the information published on 12 February 2021 - accumulated data since the measure entered in March until the end of December 2020 the total number of self-employed applying was 214,618 of whom 20,091 with reduced activity.
Workers | Businesses | Citizens |
---|---|---|
Self-employed
Other groups of workers |
Solo-self-employed
|
Does not apply to citizens |
Actors | Funding |
---|---|
National government
Company / Companies Public employment service Social insurance |
National funds
|
Social partners' role in designing the measure and form of involvement:
Trade unions | Employers' organisations | |
---|---|---|
Role | Informed | Informed |
Form | Not applicable | Not applicable |
Social partners' role in the implementation, monitoring and assessment phase:
The social partners were informed at the tripartite Standing Committee for Social Concertation.
Employer and trade union confederations were informed at the tripartite Standing Committee for Social Concertation.
Citation
Eurofound (2020), Extraordinary support for the reduction of self-employed economic activity, measure PT-2020-12/432 (measures in Portugal), EU PolicyWatch, Dublin, https://static.eurofound.europa.eu/covid19db/cases/PT-2020-12_432.html
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