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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-2020-27/950 – Updated – measures in Portugal

Protection of self-employed and informal workers

Proteção de trabalhadores independentes e informais

Country Portugal , applies nationwide
Time period Temporary, 01 July 2020 – 31 December 2020
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 July 2020 (updated 10 May 2021)

Background information

The Resolution of the Council of Ministers no. 41/2020, of 6 June, that approved the Economic and Social Stabilisation Programme establishes an extraordinary measure (2.4) Protection of self-employed and informal workers. It targets those without any income and social protection providing a monthly support of €438.81 between July and December 2020, and requires their integration into the social security system, with a 36-month obligatory commitment to the protection regime of public social security.

Content of measure

The Resolution of the Council of Ministers no. 41/2020, of 6 June, that approved the Economic and Social Stabilisation Programme establishes an extraordinary measure (2.4) Protection of self-employed and informal workers. It targets those without any income and social protection providing a monthly support of €438.81 between July and December 2020, and requires their integration into the social security system, with a 36-month obligatory commitment to the protection regime of public social security.

Requirements: * It is obligatory to stay within to the social protection system for 30 months, after the end of the concession period (December 2020). * After granting the support, the corresponding contribution to self-employed person must be paid based on the incidence value of the support for 30 months. * During the period when the support is granted, the worker contributes 1/3 of the amount of the contribution corresponding to the self-employed person and the remainder is paid within 12 months after granting of support.

Regulated by the Law 27-A/2020 of 24 July 2020 (2nd amendment to the state budget law) in article 325º -G.

Updates

The following updates to this measure have been made after it came into effect.

31 December 2020

Law 75-B/2020 of 31 December 2020 (state budget for 2021) established in Article 156 an extraordinary support to the continuity of income of workers in particular economic vulnerable situation to be means tested.

The measure encompasses various target groups and among them one comprising the situations of Case PT-2020-27/950 (Article 156, Paragraph 2 d).

According to Article 156 paragraph 7:

  • When their previous situation was equivalent in nature to salaried work, the support - between the monthly reference value of €501.16 and the average monthly income per adult equivalent of the household cannot be higher than the net income of the remuneration the worker received.
  • When their situation was or is equivalent in nature to independent work the support refers to 2/3 of the value of the loss of average income - between the last quarterly statement available at the date of request and the 2019 average monthly relevant income - having the limit of €501.16, and not exceed the average monthly income of 2019.

The implementation of Article 156 on the so called 'Extraordinary support' was regulated in detail later by the Ordinance 19-A/2021 of 25 January 2021.

Use of measure

Not estimated.

Target groups

Workers Businesses Citizens
Self-employed
Undeclared workers
Does not apply to businesses Applies to all citizens

Actors and funding

Actors Funding
National government
Social insurance
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:

  • Unknown
  • Main level of involvement: Unknown

Involvement

Social partners were consulted at the Standing Committee for Social Concertation.

Views and reactions

Supportive. The measure is part of the Economic and Social Stabilisation Programme that was presented by the government to the social partners at a CPCS videoconference with to the social partners (24 June 2020).

UGT welcomed the approval of the measure stating that they have been claiming measure to protect these groups of workers for a long time at social concertation rounds and in official written statements (https://www.noticiasaominuto.com/economia/1521229/ugt-considera-fundamental-apoio-a-trabalhadores-desprotegidos; https://www.ugt.pt/comunicados/pareceres-5).

In general, CGTP has been claiming more robust measures for independent workers and considers that the monthly support of €438.81 does not cover workers needs once it stands below the poverty line.

Sources

Citation

Eurofound (2020), Protection of self-employed and informal workers, measure PT-2020-27/950 (measures in Portugal), EU PolicyWatch, Dublin, https://static.eurofound.europa.eu/covid19db/cases/PT-2020-27_950.html

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Disclaimer: This information has not been subject to the full Eurofound evaluation, editorial and publication process.