What is the Extraordinary Support to the Reduction of Economic Activity?

It is a financial support for employees who are exclusively covered by the self-employed workers scheme, or who are also covered by the employees scheme and earn no more than the value of IAS, under this scheme, and who are not retired, subject to compliance with the contribution obligation in at least three consecutive months or six months interpolated for at least 12 months:

a) In a verified situation of total stoppage of its activity as a self-employed worker, or of the activity of the respective sector, as a consequence of the COVID-19 disease pandemic; or

b) By its own declaration together with a certified accountant's certificate attesting a turnover reduction of at least 40% in invoicing in the thirty-day period prior to the request to the competent social security services, with reference to the monthly average of the two months prior to that period, or to the same period of the previous year or, also, for those who started the activity less than 12 months ago, the average of that period.

 

Who can access this support?

Self-employed workers, sole entrepreneurs, with and without organized accounting and regardless of whether they have dependent employees, managers and members of statutory bodies with management functions, whose activities have been suspended or closed, may resort to extraordinary support to reduce economic activity for the period of suspension of activities or closure of facilities and establishments by legislative or administrative determination, in the state of emergency.

Until June 30, 2021, self-employed, sole proprietors, managers and members of statutory bodies with management functions, whose activity falls within the sectors of tourism, culture, events and shows, and who are in a situation of proven total stoppage of their activity or the activity of the respective sector, as a result of the pandemic disease COVID-19, are entitled to resort to extraordinary support for the reduction of economic activity for the corresponding period.

The Portuguese Classification of Economic Activities (CAE) of the companies covered by this support is defined through an ordinance from the members of the Government responsible for the areas of economy, finance, culture, and social security.

 

What is the amount of the support?

During the period of application of this measure, the beneficiaries of this support are entitled to receive a financial support lasting one month, which can be renewable, up to a maximum of six months, corresponding:

a) The value of the remuneration registered as basis of contribution, with the maximum limit of one IAS (EUR 438,81), in situations where the value of the remuneration registered as basis of contribution is less than 1.5 IAS;

b) Two thirds of the value of the remuneration registered as basis of contribution, with the maximum limit of the value of the minimal wage (EUR 665), in situations where the value of the remuneration registered is greater than or equal to 1.5 IAS.

For the purposes of calculating the support provided under the extraordinary support for the reduction of economic activity of the self-employed worker and the extraordinary measure to encourage professional activity, the measured average annual income of the worker in the year 2019 shall be taken into account.

 

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This information is being updated on a regular basis.

All information contained herein and all opinions expressed are of a general nature and are not intended to substitute recourse to expert legal advice for the resolution of real cases.