Browse through brief employment and labor law updates from around the globe. Contact a Littler attorney for more information or view our global locations.

View all Q1 2017 Global Guide Quarterly updates

State Budget Law 42/2016 of December 28, 2017

Enacted Legislation

Author: Ricardo Grilo, Senior Associate — Garrigues

Effective January 1, 2017, State Budget Law for 2017 introduced various modifications to the labor law landscape, which have had an immediate impact on the daily management of private companies, including: (i) the reinstatement of the pro rata monthly payment of 50% of the Christmas and vacation allowances and (ii) the review of the meal allowance payable to public servants (which is relevant for the calculation of the meal allowance personal income tax and social security contributions’ exemption threshold).

Work Accidents Pensions Update: Ordinance No. 97/2017

Enacted Legislation

Author: Ricardo Grilo, Senior Associate — Garrigues

Ordinance No. 97/2017 of March 7, updated the pensions for permanent disability and death as a result of a work accident for 2017. The pensions’ update is made by the application of a 0,5% increase, effective as from January 1, 2017.

Retirement Age: Ordinance No. 99/2017 of March 7, 2017

Enacted Legislation

Author: Ricardo Grilo, Senior Associate — Garrigues

Ordinance No. 99/2017, of March 7, 2017, updated to 66 years and 4 months the regular age to access retirement pension under the Portuguese general social security system. Such an update was made in accordance with Decree-Law No. 187/2007, of October 10, 2016, which determined the gradual update of the regular age to access the retirement pension in Social Security general system, considering the average life expectancy at 65 years old, between the second and third year prior to the commencement of the pension.

Sustainable Factor for Retirement and Invalidity Pension's Calculations

Enacted Legislation

Author: Ricardo Grilo, Senior Associate — Garrigues

Ordinance No. 99/2017, of March 7, 2017, also set the sustainable factor to be applicable in retirement or invalidity pensions, to be granted or converted during 2017, as follows: (i) Early retirement pension: 0,8612; (ii) Invalidity pensions (partial or total) for a 20 or less year period, to be converted in retirement pension: 0,9291.

Social Security Contributions from the Self-Employed

Enacted Legislation

Author: Ricardo Grilo, Senior Associate — Garrigues

Regulative Decree No. 2/2017 was published in the Official Gazette, introducing an amendment in article 62 of the Social Security Contributions Regulative Decree (Regulative Decree No. 1-A/2011, of January 3), that sets the rules to determine the self-employed workers’ relevant income for social security contributions.

Annual Report

Upcoming Deadline for Legal Compliance

Author: Ricardo Grilo, Senior Associate — Garrigues

The delivery of the Annual HR Report ("Relatório Único") regarding 2016 should be carried out as at April 15, 2017 in accordance with the Government Ordinance No. 55/2010 of January 21, 2017.

OECD's 2017 Economic Survey for Portugal

Trend

Author: Ricardo Grilo, Senior Associate — Garrigues

The Survey Executive Summary outlines three very specific topics: “(i) The economy is recovering; (ii) Investment is still very low, and (iii) improving skills is crucial for raising prosperity.” After deep recession, Portugal's recovery rate has been quite modest as the country is still struggling to adapt to the structural reforms implemented in the recent years. While there was a certain feeling of “missed opportunity” in relation to some of the forecasted changes (improvements in judicial efficiency, administrative reform, product market regulation reforms were needed), in what specifically concerns labor law the impact of those reforms was mainly felt on areas such as the cost of work and the increase of flexibility for employers to restructure and reorganize their operations. The Government in office (of the Socialist Party) was appointed more than one year ago on the basis of a broad post electoral agreement entered into between most represented left wing parties. That agreement was executed under the principle that the previous “austerity” framework was no longer to be followed. We have already witnessed a few changes that are in line with that proposed course of action (such as the progressive increase of the minimum wage), but the Government has also given some indications as to its concern regarding not harming the slow but yet slightly positive evolution of the economy. However, the low investment rate is still a concern and potential new reforms may be in the pipeline for the near future.