On 23rd of September 2024, the Portuguese Government approved new employment support measures, publishing three Ordinances aimed primarily at strengthening young people’s entry into the labour market and promoting professional qualifications.
Find below a summary of each measure:
“Estágios INICIAR” Measure
Ordinance no. 219/2024/1, of 23rd September
Provides financial support for the integration of young people and other unemployed individuals with level 4 or 5 qualifications on the National Qualifications Framework (NQF) into the job market.
Recipients:
- People registered as unemployed with the IEFP, aged 18 or over and 35 or under, with a level 4 or 5 qualification from the NQF;
- People registered as unemployed with the IEFP, aged over 35, who have not been awarded an old-age pension, provided that they have obtained an NQF level 4 or 5 qualification in the last 24 months;
- People registered as unemployed with the IEFP who are disabled and have qualification level 4 or 5 of the NQF or lower;
- People registered with the IEFP with suspended employment contracts due to unpaid wages are also considered as unemployed for this purpose.
Promoting entity:
- Compliance with tax and social security obligations;
- Compliance with regulations regarding financial support received from the IEFP;
- Compliance with any required reimbursements related to European Fund financing;
- No outstanding wage payments owed to employees;
- No conviction in serious or very serious criminal or administrative offence proceedings in the last 2 years.
Internship contract: signed between the promoting entity and the recipient, in writing, with the individual internship plan forming an integral part of it.
Duration of the internship: 6 months, non-extendable (or 12 months in the case of young people with disabilities).
Internship supervisor: the traineeship must have a supervisor, to be appointed by the promoting entity, with a skills profile suited to the proposed internship.
Trainees rights:
- Monthly internship grant, which is awarded to trainees depending on their NQF qualification level;
- Meal or meal allowance;
- Transport or transport allowance (in the case of people with disabilities);
- Work accidents insurance.
Certification: at the end of the internship, the promoting entity must give the trainee a certificate of completion and final assessment.
Financial support:
- The internship grant is subsidized by the IEFP to the tune of 65% (it may be 80% in certain situations, namely for internships located in inland areas and for cases in which a full-time, open-ended employment contract is signed within 20 working days of completing the internship);
- The IEFP can also contribute to the meal or meal allowance, transport and work accident insurance in certain cases.
Payment of support: for 6-month internships, 60% at the start of the internship and the remainder at the end of the internship; for 12-month internships, payment is made in 3 instalments.
Taxes and social security: the internship is treated as employment, and the IEFP does not contribute to social security contributions.
Non-compliance and repayment of support: the promoting entity must reimburse the financial support received if, in particular, it fails to fulfil any of the obligations laid down within the scope of this measure.
Monitoring, verification and auditing: the IEFP may carry out monitoring, verification, auditing or inspection actions.
Entry into force: 24th of September 2024, but still subject to regulations to be drawn up by the IEFP within 30 working days.
“+Emprego” Measure
Ordinance no. 220/2024/1, of 23 September
Granting of financial support to employers who sign an employment contract with an individual registered as unemployed with the IEFP.
Recipients:
- People who have been registered as unemployed with the IEFP for at least 3 consecutive months (except in the case of young people up to the age of 35, people aged 45 or over and people who have completed an IEFP-funded traineeship less than 12 months previously);
- People registered with the IEFP with suspended employment contracts due to unpaid wages are also considered as unemployed for this purpose.
Employer:
- Compliance with tax and social security obligations;
- Compliance with regulations regarding financial support received from the IEFP;
- No outstanding wage payments owed to employees;
- No conviction in serious or very serious criminal or administrative offence proceedings in the last 2 years.
Employment contract: open-ended, full-time contract.
Requirements to be met by the promoting entity for the granting of financial support:
- Advertising and registration of the job offer;
- Signing of an open-ended, full-time employment contract with an unemployed person registered with the IEFP;
- No collective redundancies, redundancies due to job losses or redundancies due to unsuitability in the last 3 months;
- Net job creation;
- Maintenance of the contract and employment level for 24 months;
- Vocational training for the duration of the support;
- Compliance with the guaranteed minimum monthly contribution.
Financial support for hiring and respective payment: 12 times the value of the IAS, which may be increased by 35% in the case of hiring a person with a disability, hiring a young person up to the age of 35 and hiring a long-term unemployed person.
Payment of support: made in three instalments, two of 40% and the last of 20%.
Failure to comply and repayment of support: the employer must repay the financial support received if it fails to comply with any of the obligations laid down within the scope of this measure, if the employment contract is terminated by the employee or if the employment contract is terminated by agreement.
Cumulation of support: cannot be cumulated with other employment rights support applicable to the same job.
Monitoring, verification and auditing: the IEFP may carry out monitoring, verification, auditing or inspection actions.
Entry into force: 24th of September 2024, but still subject to regulations to be drawn up by the IEFP within 30 working days.
“+Talento” Measure
Ordinance no. 221/2024/1, of 23 September
Provides financial support by the IEFP and comprises the following measures:
- “Estágios + Talento” Measure;
- “Emprego + Talento” Measure.
Promoting entity:
- Compliance with tax and social security obligations;
- Compliance with regulations regarding financial support received from the IEFP;
- No outstanding wage payments owed to employees;
- No conviction in serious or very serious criminal or administrative offence proceedings in the last 2 years.
Entry into force: 24th of September 2024, but still subject to regulations to be drawn up by the IEFP within 30 working days.
“Estágios + Talento” Measure
Granting of financial support for young unemployed people registered with the IEFP to enter the labour market.
Recipients:
- Unemployed young people registered with the IEFP aged 35 or under and with a qualification level equal to or higher than level 6 of the NQF;
- People registered with the IEFP with suspended employment contracts due to unpaid wages are also considered as unemployed for this purpose.
Eligibility conditions: candidates who have completed a professional traineeship with a promoting entity can only benefit from this measure if, after the start of the previous traineeship, they have obtained a new level of qualification higher than the one held and a qualification in an area different from the national classification of education and training areas in which the new internship falls.
Internship contract: signed between the promoting entity and the recipient of the measure, in writing, with the individual traineeship plan forming an integral part of it.
Duration of the internship: 6 months, non-extendable (or 12 months in the case of young people with disabilities).
Trainee rights:
- Monthly traineeship grant, which is awarded to the trainee according to their NQF qualification level.
- Meal or meal allowance;
- Transport or transport allowance (in the case of people with disabilities);
- Work accidents insurance.
Internship supervisor: the internship must have a supervisor, to be appointed by the promoting entity, with a skills profile suited to the proposed internship.
Certification: at the end of the traineeship, the promoting entity must give the trainee a certificate proving completion and final assessment.
Financial support:
- The IEFP pays 65% of the cost of the internship grant (it may pay 80% in certain situations, namely for traineeships located in inland areas and in cases where an open-ended, full-time employment contract is signed within 20 working days of the traineeship’s conclusion);
- The IEFP can also contribute to meals or meal allowances, transport and work accident insurance in certain cases.
Payment of support: for 6-month internships, 60% at the start of the internship and the remainder at the end of the internship; for 12-month internships, payment is made in 3 instalments.
Taxes and social security: the intership is treated as employment, and the IEFP does not contribute to social security contributions.
Failure to comply and repayment of support: the promoting entity must repay the financial support received if, in particular, it fails to comply with any of the obligations laid down within the scope of this measure.
“Emprego + Talento” Measure
Granting of financial support for the signing of employment contracts with unemployed young people registered with the IEFP.
Recipients:
- Young unemployed people registered with the IEFP aged 35 or under with a qualification equal to or higher than NQF level 6, including those who have emigrated permanently for at least 12 months, and whose salary established in the contract is equal to or higher than the entry level salary of a graduate in the general career of senior technician in the Public Administration;
- People registered with the IEFP with suspended employment contracts due to unpaid wages are also considered as unemployed for this purpose.
Employment contract: open-ended, full-time contract.
Requirements to be met by the promoting entity for the granting of financial support:
- Advertising and registration of the job offer;
- Signing of an open-ended, full-time employment contract with an unemployed person registered with the IEFP;
- No collective redundancies, redundancies due to job losses or redundancies due to unsuitability in the last 3 months;
- Net job creation;
- Maintenance of the contract and employment level for 24 months;
- Vocational training for the duration of the support.
Financial support: 18 times the value of the IAS, increased by 35% for certain situations, namely hiring a young person with a disability and a job located in inland areas.
Payment of support: in three instalments, two of 40% and one of 20%.
Cumulation of support: cannot be cumulated with other employment rights support applicable to the same job.
Failure to comply and repayment of support: the promoting entity must repay the financial support received if it fails to comply with any of the obligations laid down under this measure, if the employment contract is terminated by the worker or if the employment contract is terminated by agreement.
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