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COVID-19 – Social Security: Exemption and partial relief of employer’s contributions


In brief

Decree-Law 46-A/2020, of 31 July, published in the Official Gazette, establishes the extraordinary support to the gradual recovery of the activity of companies in business crisis situation, with temporary reduction of the standard working hours. It also foresees the exemption and partial relief of Social Security contributions due by the employer due on compensation supported by the Social Security Authorities, as follows.

The referred exemption and partial relief are granted to employers in a business crisis situation that access the extraordinary support now published (the remaining requirements laid down in the diploma should be met). The measure benefits the following entities:

  • Micro, small and medium sized companies

(i) August and September 2020: full exemption;

(ii) October, November and December 2020: partial relief of 50%.

  • Large companies

(i) August and September 2020: partial relief of 50%;

(ii) October, November and December 2020: no exemption or partial relief available.

The diploma is effective from 1 August 2020 until 31 December 2020.

2020 PwC. This communication is of an informative nature and intended for general purposes only. It does not address any particular person or entity nor does it relate to any specific situation or circumstance. PricewaterhouseCoopers Tax Services TLS, Lda. We will not accept any responsibility arising from reliance on information hereby transmitted, which is not intended to be a substitute for specific professional business advice.

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Rosa Areias

Tax Lead Partner, PwC Portugal

Tel: +351 225 433 101

Leendert Verschoor

Partner, PwC Portugal

Tel: +351 917 887 221

Ana Duarte

Director, PwC Portugal

Tel: +351 213 599 671

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