Labour Legislative Changes for the year 2022

As of January 1, 2022, the labour legislative changes approved by the Decree-Laws published on the 7th and on the 16th of December and Ordinance from December 13th came into force, highlighting the following:

1. The national minimum wage rises from €665.00 to €705.00, with an increase of €40.00.

2. Consequently, and in order to compensate employers for the increase in the national minimum wage in 2022, the same legal diploma created an exceptional support measure to make up for employers who find themselves in the contingency of obligatorily increasing the salary of their workers. To this end, employers, irrespective of their legal form, as well as individuals with one or more workers at their service, will be entitled to a cash subsidy corresponding to a fixed amount for each worker earning the minimum wage, provided that the employer presents, in the declaration of remuneration for the month of December 2021, one or more full-time workers, with declared basic remuneration equal to or greater than €665.00 and less than €705.00 and, cumulatively, have, at the time of payment of the subsidy, their tax and contributory situations regularized before, respectively, the Tax Authority and Social Security. This support will be in the amount of €112.00, paid in a single instalment by IAPMEI (Institute for the Support of Small and Medium-Size Enterprises) or by the Instituto do Turismo de Portugal (Portuguese Tourism), for each worker who earns the minimum wage for 2021 and support of half of this amount, corresponding to €56.00, for workers who have a wage that ranges between €665.00 and €705.00. It is also added that this subsidy can be combined with other employment supports applicable to the same job position, including those granted in the context of the COVID-19 pandemic, whose attribution is, by nature, dependent on conditions inherent to contracted workers.

3. In 2022, the Social Support Index (IAS) is also updated from €438.81 to €443.20.

4. The value of the minimum unemployment allowance will also increase by €70.87, from €438.81 in 2021 to €509.68 this year. This value is valid in situations where the allowances that served as the basis for calculating the unemployment benefit correspond, at least, to the value of the national minimum wage.

5. As for the value of the unemployment allowance, in 2021 this benefit varied between €351.05 and €438.81. In 2022, it will vary between €354.52 and €443.15, with an increase of around €3.50 for the minimum value and an increase of around €4.30 for the maximum amount.

6. Finally, the meal allowance for administrative workers will also suffer a change. This subsidy is considered a social benefit, being an accepted fact that must be paid by all companies, both in the public and private sector, although it is not mandatory by law. However, a minimum value is attributed to this benefit, contemplated in the State Budget, for public service workers, which was, until this moment, of €4.77. With Ordinance no. 292/2021, from the 13 of December, that regulates the working conditions for administrative workers that are not covered by specific collective regulations, the meal allowance will be of €5,20 for each completed day of work.