At the start of 2021, the mandatory minimum monthly wage in Portugal rose to €665. In May, the Portuguese government launched an initiative to support companies and employers and ensure this new minimum wage is paid.
The measure applies to employers and individuals with one or more employees and consists of a financial allowance, paid by either the IAPMEI – Agency for Competitiveness and Innovation, IP (IAPMEI), or the Portuguese Tourism Institute, IP (Turismo de Portugal).
What are the allowance values?
- €84.50 for each employee who earned €635.00 as their declared base remuneration in December 2020 (amount equivalent to RMMG for 2020).
- €42.25 for each employee who earned a declared basic remuneration value between €635.00 (RMMG for 2020) and €665.00 (RMMG for 2020) in remunerations for the month of December 2020.
What conditions must be met to receive the payment?
- The employer must have had one or more full-time employee with a declared base remuneration equal to or greater than €635.00 and less than €665.00 in the declaration of remunerations for the month of December 2020 and
- has met their tax and contributory commitments to the tax authority and social security.
The social security system will identify the employers covered, making the following information available to paying entities:
- Name or corporate name of the employer;
- The number of employees covered (full-time employees who, in the December 2020 declaration of remunerations, earned a declared basic remuneration value equal to or greater than €635.00 and less than €665.00). It should also be noted that social security considers the number of full-time employees included in the last declaration of remunerations submitted before this disclosure of information, whenever this count is less than the number of employees identified on 31 December 2020;
- Tax identification number (NIF) and Social Security identification number (NISS) of the employer.
The IAPMEI and IP have provided employers with an electronic registration system to pay the allowance and collect information to award this benefit.
Employers must register by 26 June 2021, and payment of the allowance will be made by 26 July 2021.
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