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 – Updated – measures in Portugal
|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|
Responses to inflation
– Increasing income in general
|Author||Maria da Paz Campos Lima - CESIS|
|Measure added||13 September 2022 (updated 10 July 2023)|
The measure of 'extraordinary support to holders of income and social benefits' was decided by the Resolution of the Council of Ministers on 6 September 2022. This announcement included the 'Families First' (Familias Primeiro) measure that directly supports the purchasing power of families and mitigates the effects of inflation and rising prices of essential goods. The measure came into force with the publication of Decree-Law Decree-Law 57-C/2022 of 6 September.
The measure consists of a single payment made in October to all taxpayers (with exception of pensioner) with a gross annual income of up to €37,800. Each eligible citizen receives €125, which is not subject to tax.
This measure includes taxpayers (dependent or independent workers) and 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.
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 is provided to individuals, not households. Even if one family member is excluded from the scope of the measure, this does not prevent other members from benefiting from it if they meet the requirements.
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.
|Applies to all workers||Does not apply to businesses||
Other groups of citizens
People on social benefits
People on low incomes
Public employment service
Social partners' role in designing the measure and form of involvement:
|Trade unions||Employers' organisations|
|Form||Not applicable||Not applicable|
Social partners' role in the implementation, monitoring and assessment phase:
Social partners were informed about the measures.
The General Confederation of Portuguese Workers (CGTP) considered the package 'Families First' to be 'very insufficient' and 'not respond to the structural problems that the country faces'. In particular they consider that the one-off measure of €125 per person with a gross monthly income of up to €2,700 to be "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 General Workers’ Union (UGT) highlighted that the measures in 'Families First' were necessary, but too late and insufficient. However, they appreciated the package, saying, "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 channelled 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 companies as well (RTP Noticias, 5 September 2022).
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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