Portugal: Financial support for maintaining employment contracts, training (COVID-19)

Portugal: Maintaining employment contracts, training

Ministerial Order (Portaria) no. 170-A/2020 (13 July 2020) provides guidance implementing financial support for employers that continue to maintain employment contracts—support that addresses economic challenges presented by the coronavirus (COVID-19) pandemic.

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The ministerial order regulates the procedures, conditions, and terms of access to the extraordinary financial support for the normalization of business activity (incentivo extraordinário à normalização da actividade empresarial—IENAE) that is intended to support employers with “extraordinary support” for maintaining employment contracts or an extraordinary training.

A request for IENAE-related support payments must be timely submitted, by means of an online application, with appropriate documentation including a declaration that the employer does not have any pending liability for social security or tax. The authorities have 10 business days from the date when the application is submitted to make a determination for the requested financial support. The IENAE payments are to be made under the following terms:

  • Support in the amount of €635 per worker covered by the “simplified lay-off” or the extraordinary training plan, distributed in a lump-sum payment
  • Support in the amount of €1,270 per worker covered by the “simplified lay-off” or the extraordinary training plan, distributed in two payments


Read a July 2020 report prepared by the KPMG member firm in Portugal

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