Portugal: Unemployment and termination of activity subsidies increase

Portugal - 12 / 29 / 2021

Portugal Labor and Employment Alert

Decree-Law no. 119/2021, was published in Official Gazette, increasing the minimum amount of unemployment subsidy (employees) and establishing the enhancement of this subsidy, as well as of the subsidy for termination of activity (economically dependent self-employed workers) and of the subsidy for termination of professional activity (Members of the Board, directors and self-employed workers with a corporate activity) to beneficiaries in a situation of special necessity.

1.Increase of unemployment subsidy and of subsdies for termination of activity

The daily amount of unemployment subsidy is increased in 10% in the following situations:

When, in the same household, both spouses or non-marital partners have children (or equivalent) at their care and are receiving:

Unemployment subsidy;
Termination of activity subsidy;
Termination of professional activity subsidy.

When the spouse or non-marital partner is also unemployed and not receiving any type of subsidies and have children (or equivalent) at their care;
When the beneficiary is a single parent in a single parent household.

The enhancement of the unemployment subsidy is kept, for the beneficiary that keeps receiving it, when his/her spouse or non-marital partner loses:

The unemployment subsidy but starts receiving the subsequent unemployment social aid;
The subsidy for termination of activity or the subsidy for termination of professional activity but remains unemployed and does not receive any other social subsidies for the unemployment.

If the beneficiaries are married or are in a non-marital partnership, the 10% enhance of the subsidy is for both of them.

These rules are also applicable to beneficiaries of:

Subsidy for termination of activity, payable to economically dependent self-employed workers;
Subsidy for termination of professional activity, payable to members of the board, directors and self-employed workers with a corporate activity.

2. Increase of the unemployment subsidy minimum amount

For beneficiaries with remunerations equal to or higher than the minimum monthly wage, the monthly amount of unemployment subsidy is increase in order to guarantee, at least, the equivalent to 1.15 of the Social Support Index (€ 509,68 in 2022).

These rules enter into force on January 1^st, 2022.