Decree-Law 11/2016, of March 8th
Decree-Law 11/2016 introduces, with effect from 1 February 2016, an exceptional employment support measure by reducing the contributions rate applicable to the employer (0.75 percentage points lower) for contributions related to the remunerations owed to workers, from February 2016 to January 2017, including the amounts due in the form of vacation and Christmas allowance.
This measure applies to private employers for their workers who are registered with the Social Security Service under the General Social Security System for employed workers.
The right to the reduction of the contribution rate is not applicable to the following entities:
- Employers, in relation to workers that are covered by contributory schemes with rates lower than the rates applicable to the majority of the employed workers, with the exception of the non-profits organizations or economically weaker activity sectors in accordance with the Social Security Contributions Code;
- Employers, in relation to workers covered by contributory schemes with reserve bases set out in inferior values to the Social Support Indexant and in inferior values to the take-home pay or conventional remuneration.
The right to the reduction of the contribution rate depends on the verification of the following conditions:
- The employee being linked to the employer by a full time employment contract or by a part time employment contract dated before 1 January 2016;
- The value of the monthly wage of the employee in 31 December 2015 being between € 505,00 and €530,00, or proportional value in case of part time employment contracts;
- The employer having its social security obligations fulfilled.
To benefit from the reduction of the contribution rate, employers shall deliver the remuneration declarations of all the employees covered by the measure, in accordance with the applicable contribution rate reduction.
In cases of part-time employment contracts, the benefit of the reduction of the contribution rate depends on a formal request and the phase-out period refers to:
- The whole period established in article 2/2, in cases where the request is submitted at the latest 30 days after the date of publication of the Decree-Law;
- The remaining period, from the month following that in which the request was submitted, in all other cases.
The right to the reduction of the contribution rate ceases in the following situations:
- Termination of the employment contract;
- The employer fails to have its contribution status regularized. If the employer regularizes its status, the right to the reduction of the contribution rate is granted from the month following that in which the tax status has been regularized and is maintained for the remaining period.
This support measure may be cumulated with other employment supports applicable to the same work position whose attribution is, by nature, dependent on conditions inherent to the employed workers.