Newsletters
1. Meal Allowance is increased to €6 or €9.60 when paid in meal card
The Civil Servants' meal allowance was updated to EUR 6.00, as published in Ministerial Order 107-A/2023, of 18 April 2023.
The thresholds exempted from Personal Income Tax and Social Security taxes in the private sector also increase to EUR 6.00.
For workers receiving their meal allowance through a meal card, the amount exempt from taxation will be increased from the current EUR 8.32 to EUR 9.6 (according to the Personal Income Tax Code, whenever the payment is made by meal card, the tax will only apply to the value "exceeding in 60%" the statutory limit).
Finally, it should be noted that this adjustment of the meal allowance is effective as of 1 January 2023.
2. Compromisso Emprego Sustentável
The hiring incentive programme "Compromisso Emprego Sustentável" governed by Ministerial Order 38/2022, of 17 January 2022, was amended for the second time by Ministerial Order 109/2023, of 19 April 2023. The most significant changes are as follows:
- The minimum period of registration with IEFP will not apply to:
- Individuals aged 35 years or less;
- Individuals aged 45 or over;
- Refugees or beneficiaries of temporary protection;
- Individuals who have completed an IEFP-financed internship within the last 12 months;
- Employment contracts concluded between an employer or entity that is part of the same group and an unemployed person who worked for the latter under an employment contract immediately before becoming unemployed are not eligible for this incentive, except when the unemployment situation occurred over 12 months ago or whenever the employment contract has been concluded under the regime applicable to young people on school holidays, as established in the Social Security System Contribution Regime Code (Código dos Regimes Contributivos do Sistema Previdencial de Segurança Social).
- The financial support for hiring under this programme will now be possible from a lower salary value. This programme previously provided that financial support was increased by 25% when the base salary was equal to or greater than twice the minimum monthly wage (i.e. €1,520.00).
The increase is now granted for salaries starting at 1,330.00 euros.
This financial support for hiring will now cover a new scenario, by providing that the financial support will be increased by 25% whenever a long-term unemployed individual is hired.
- The deadlne for reviewing the application is increased from 20 working days to 30 working days;
- The refund of the IEFP support shall also become mandatory, not only in the previously foreseen cases, but also when the employment contract is terminated by the employer during the trial period, unless the employer replaces the worker who has terminated the contract by an unemployed person registered with the IEFP, I.P., under the same conditions or by another eligible unemployed person.