HomeEconomyThe long-term unemployed will be able to accumulate a...

The long-term unemployed will be able to accumulate a subsidy with their salary

The Government presented to the social partners a measure that will make part of the unemployment benefit compatible with a salary for the long-term unemployedThe Minister of Labor, Solidarity and Social Security, Ana Mendes Godinho, said this Wednesday.

“We present to the social agents a measure on the implementation of one of the points provided for in the agreement to support the reincorporation into the labor market of the long-term unemployed,” said the minister at the end of a Social Dialogue meeting on the state of the Medium-term plan agreement to improve income, wages and competitiveness, signed on October 9.

Ana Mendes Godinho explained that it is “an initial proposal” to be discussed with the social agents “to build a measure that allows reconciling a part of the unemployment benefit with the salary of the long-term unemployed who return to the labor market ”.

The minister said that there is currently a measure that allows the salary to be supplemented with a part of the subsidy but that “it is of little use”, being different from the one that is now being evaluated in the Social Dialogue.

“Here the objective is to allow the accumulation of a part of the unemployment subsidy in a regressive logic, therefore it decreases throughout the months that the person is working, with salary accumulation“, explained Ana Mendes Godinho.

Regarding the status of the agreement signed in October with the employer unions and the UGT, the minister pointed out that “almost half” of the measures have been carried out, considering that the execution “is a sign of confidence” that the agreement on progress . .

The general secretary of the UGT, Mário Mourão, was satisfied with the result of the agreement, listing some of the fiscal measures, specifically the incentives for the IRC Jovem.

The president of the Confederation of Commerce and Services of Portugal (CCP), João Vieira Lopes, said that it is necessary to clarify the measure that provides tax incentives for companies that increase wages as defined in the agreement.

On this subject, the minister indicated that “there will be no changes” to the proposed State Budget for 2023 (OE2023) whose discussion and vote take place in parliament.

According to Ana Mendes Godinho, the partners asked to clarify the requirements for the IRC tax benefit, that is, “the way in which the existence of dynamic collective bargaining will be verified.”

Asked whether the companies covered by extension ordinances will be entitled to the tax incentive, the minister said that “the objective is to protect all companies that increase wages by the amount or amount above what is provided for in the concertation agreement and that are covered by the Collective Agreement. Negotiation Regulation Instrument”.

“If they have an extension ordinance that applies all the rules resulting from social dialogue, these rules also apply to them,” he added.

Source: Observadora

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