The Government proposed this Wednesday to the social agents the conversion of the Labor Compensation Fund (FCT) into a Fund to Support the Empowerment of Young Workersin the scope of the discussion in the Social Agreement on the agreement on income and competitiveness.
The measure is part of the Government’s medium-term proposal improve income, wages and competitivenesswhich is presented this Wednesday afternoon at the Social Concert.
The document provides for the “reconversion of the Labor Compensation Fund (FCT) into a Support Fund for the Empowerment of Working Youth and the strengthening of the Labor Compensation Guarantee Fund (FGCT)”.
This measure is part of the objective of attracting young people and retaining talent in the country.
Employers’ centrals have been demanding changes in the FCT for years, arguing that the fund has hundreds of millions of euros unemployed and that they are necessary for the economy.
The FCT is a fund financed by employers, through monthly contributions of 1% on contracts made since the end of 2013, in order to pay part of the amount of compensation for termination of the employment contract.
The fund was created at the time of the troika and served at that time as a counterpart to the changes in the labor law, namely the reduction in the payment of severance payments.
Still with the objective of retaining young people and attracting talent, the Government’s proposal provides for the creation of an annual program to support the permanent hiring of qualified young people with salaries equal to or greater than 1,268 euros.
It also provides for an increase in the annual benefit of the IRS Joven and the extraordinary extension of the Regressar Program during the term of the agreement (2026).
Source: Observadora
