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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-2022-37/2853 – measures in Portugal

Extraordinary financial support for citizens with low and medium income

Apoio extraordinário a titulares de rendimentos e prestações sociais

Country Portugal , applies nationwide
Time period Temporary, 06 September 2022 – 31 December 2022
Context COVID-19, War in Ukraine
Type Legislations or other statutory regulations
Category Responses to inflation
– Increasing income in general
Author Maria da Paz Campos Lima - CESIS
Measure added 13 September 2022 (updated 22 September 2022)

Background information

The extraordinary measure 'extraordinary support to holders of income and social benefits' was decided by the Resolution of the Council of Ministers 74-A/2022 of 6 September 2022 which announced the package of extraordinary measures 'Families First' (Familias Primeiro) in view to directly support the purchasing power of families and mitigate the effects of inflation and rising prices for essential goods. The measure came into force with the publication of Decree-Law Decree-Law 57-C/2022 of 6 September.

Content of measure

The measure consists of a single payment (one-off measure), to be made in October, to all taxpayers (with exception of pensioner) with a gross annual income of up to € 37,800, which corresponds to an average gross monthly income of up to €2,700. Each eligible citizen receives €125 net, not subject to tax.

This measure includes not only taxpayers (dependent or independent workers), but also those who are exempt from personal tax payment. The payment will be made through the Finance Authority.

This measure also covers recipients of social benefits, such as social inclusion income, unemployment benefit, social inclusion benefit or subsidy for informal caregivers, among others. In these cases, the payment will be made through Social Security.

The unemployed people who do not receive social benefits will also benefit from this measure, provided they are registered in Institute for Employment and Vocational Training (Instituto do Emprego e Formação Profissional, IEFP), the Portuguese public employment service. The one-off payment of €125 euros has an individual nature. Even if one of the family members is excluded from the scope of the measure, if he or she receives more than €37,800 per year, this does not prevent other members from benefiting from it, if they meet the requirements, since the payment has an individual nature and will not be made any average between couples.

Use of measure

According to the estimation of the Minister of Finances presented at a press conference on 6 September 2022, the extraordinary support to holders of income and social benefits will reach 5.8 million adults and it will cost up to €730 million.

Target groups

Workers Businesses Citizens
Applies to all workers Does not apply to businesses Disabled
Other groups of citizens
People on social benefits
People on low incomes

Actors and funding

Actors Funding
National government
Public employment service
Social insurance
National funds

Social partners

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:

  • No involvement
  • Main level of involvement: Peak or cross-sectoral level

Involvement

Social partners were informed about the measures.

Views and reactions

The General Confederation of Portuguese Workers (CGTP) considered that the package 'Families first' is 'very insufficient' and 'does not respond to the structural problems that the country faces'. In particular they consider that the one-off measure of 125 euros per person with a gross monthly income of up to €2,700 is "insufficient to compensate for the income losses accumulated in the first 10 months of this year" (...), it may help the month of October, but neglects that the needs of workers and their families are not punctual, but permanent." (Diário de Noticias, 6 September 2022).

The the General Workers’ Union (UGT) trade union confederation UGT highlighted that the measures of the package 'Families first' were necessary but too late and insufficient. However, they appreciated the package positively, on the grounds that "most measures contribute to relieving the finances of families, they cover a normally excluded middle class (...), a different option than in the past, once the support is channeled directly to the people'.(Expresso, 8 September 2022).

The Business Confederation of Portugal (CIP) highlighted the package for families was important but that the government should provide help to the companies at the same time (RTP Noticias, 5 September 2022).

Sources

  • 06 September 2022: Decree-Law 57-C/2022 of 6 September (dre.pt)
  • 06 September 2022: Resolução do Conselho de Ministros n.º 74-A/2022, de 6 de setembr (dre.pt)

Citation

Eurofound (2022), Extraordinary financial support for citizens with low and medium income, measure PT-2022-37/2853 (measures in Portugal), EU PolicyWatch, Dublin, https://static.eurofound.europa.eu/covid19db/cases/PT-2022-37_2853.html

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