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Some companies agree with their employees on the allocation of bonuses (income, productivity, attendance, collection, etc.) which, in the vast majority, are awarded for the achievement of objectives, generally linked to the performance of the worker and to the results achieved by the company. In an opinion piece for Human Resources Portugal, Pedro Antunes, Partner at the Labour Department of CCA, clarifies whether receiving a productivity bonus at the end of the year requires paying taxes or not.
"The tax legislation that we currently have in force provides that the premiums must be subject to IRS deductions, the rate of which will vary according to the total monthly remuneration and the worker's framework (married, single, number of dependents, etc.). In addition, the premium is also subject to deductions for Social Security, 23,75% by the company and 11% by the employee with withholding tax, when it results directly or indirectly as consideration for the provision of work", explains the CCA Partner.
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- Human Resources Portugal