This is an exceptional and temporary measure related to the Covid-19 pandemic Decree-Law no. 99/2020, of November 22nd.
According to article 100 of the Labor Code, independent workers and employers from the private and social sectors classified as micro, small or medium companies are entitled to an extraordinary postponement of the payment of contributions for November and December 2020.
How does an employer benefit from this new measure?
An employer does not need to submit an application. In February 2021, self-employed workers and employers must indicate through Segurança Social Direta the payment term they have chosen -3 or 6 months.
How will the contributions be made?
The contributions of the employer and independent workers for the months of November and December 2020 can be made in 3 or 6 monthly installments of the same amount, in succession, with no interest due, starting in July 2021.
So either:
- July through September 2021
- July through December 2021
Can employers still make full payments of their contributions?
This new measure does prevent full payment of contributions due by employers.
What happens if an employer fails to meet these new requirements?
Failure to meet the requirements for access to the postponement or failure to pay one of the installments will result in:
- The termination of the benefits attributed
- The totality of the installments missing
- The interest exemption ceasing.
Additional Reading:
https://dre.pt/application/conteudo/149220108
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