The Labour Law Department of Belzuz Abogados, S.L.P. - Sucursal em Portugal presents the recent legal changes with labour impact, of which we highlight the following:
(1) Increase of the Minimum Monthly Salary
With effects as from 1 January 2023, the minimum monthly salary ("RMMG") will increase to €760.00 throughout mainland Portugal, which corresponds to an increase of €55.00 comparing to the 2022 amount.
This update is reflected in all employment contracts and collective bargaining agreements that establish the RMMG as salary (considering a full-time employment contract), without the need to make a formal amendment to those documents, as well as in the overall amount of severance pay, in cases where severance pay is due.
This update aims to mitigate the loss of purchasing power due to the increase in the inflation rate and is an advance on the target set by the Government, to reach an RMMG of €900.00 in 2026.
(2) Updating the meal allowance
Although private sector employers are not, as a rule, required to pay the meal allowance (unless such obligation results from a collective bargaining agreement applicable to the employment relationship or is a company use), the meal allowance is a complement to remuneration that is widely used in Portugal.
Ministerial Order no. 280/2022, of 18 November, updated the daily value of the meal allowance for civil service employees to €5.20, with effect as from 1 October 2022.
It should be noted, however, that this value is only binding for the civil service and may be taken as a reference for the private sector (which may apply it, or not). However, the amounts paid to the civil service employees are relevant considering the tax rules in force on the exemption of the payment of taxes and social security contributions.
Thus, the limit of the value of the meal allowance, exempt from Personal Income Tax and social security contributions, is now:
- €5.20/day, if paid in cash;
- €8.32/day, if paid through meal vouchers or meal cards.
(3) Increase of the Social Support Indexation
Ministerial Order no. 298/2022 of 16 December established the value of the social support indexation ("IAS") at €480.43 - with effect from 1 January 2023 - which serves as a reference for the calculation of several social benefits (such as unemployment benefit, pensions, death benefit, family allowance, etc.) and for the calculation of monthly contributions regarding of domestic service employees.
The Labour Law Department at Belzuz Abogados, S.L.P. – Sucursal em Portugal has experience and qualified professionals who can provide information and clarification on the recent legislative changes with a labour impact mentioned above, as well as to assist companies with a view to fully complying with their obligations arising from these changes.
Belzuz Abogados SLP
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