Ordinance No. 102-A / 2021, of May 14, regulates the New incentive to normalize business activity and simplified support for micro-companies to maintain jobs. This diploma came into force on May 15th.


New incentive to normalize business activity


• Who does it apply to?

This incentive applies to employers based in mainland Portugal who have already benefited (i) or from extraordinary support for the maintenance of an employment contract, under the terms of article 2 of Decree-Law no. 6-E / 2021, of January 15 or (ii) extraordinary support for the progressive resumption of activity by companies in situations of business crisis, with a temporary reduction of the normal working period, under the terms of article 4 of Decree-Law no. 46-A / 2020, July 30.


• What does this measure consist of?

It consists of the attribution by IEFP of financial support to companies in the phase of return of their workers to the normal provision of work and normalization of business activity, applicable for each worker who was covered, in the first quarter of 2021, by the aforementioned supports.


• What is the calculation method?

The calculation of the new incentive to standardization is carried out based on the number of employees of the employer in the month prior to the submission of the application, with the maximum number of covered workers who benefited from the support being limited, in the last month of its application, and since that these workers were covered in 2021 by such support for a period equal to or greater than 30 days until the entry into force of this decree.


What is the deadline for applying for support?


When required by May 31, 2021: This incentive has the value of twice the RMMG (i.e. 2 * 665EUR) and is paid in two installments spread over six months.

A 50% reduction in the payment of social security contributions is also granted, in relation to the workers covered by this support, but only during the first two months from the month following the payment of the first support payment.

If required after May 31 and until August 31, 2021: Value of an RMMG. this amount is paid in a single installment. Considering that it corresponds to a concession period of three months.


• How long does it take to get a decision?

The IEFP issues a decision within 15 working days from the date of submission of the application, and this period is suspended when there is a need for clarification or additional information.


Simplified support for micro-enterprises to maintain jobs


• Who does it apply to?

The recipients of the simplified support are employers of a private nature, including those from the social sector, who are considered micro-enterprises, who are in a business crisis situation, and who have benefited in 2020 from at least one of the following supports:

(i) Extraordinary support for the maintenance of an employment contract, provided for in article 5 of Decree - Law no. 10 -G / 2020, of 26 March, in its current wording;

(ii) Extraordinary support for the progressive resumption of activity in companies in a situation of business crisis, with a temporary reduction of the normal working period, provided for in article 4 of Decree-Law no. 46 -A / 2020, of 30 July , in its current wording.


• What does this measure consist of?

Simplified support consists of financial support in the amount of twice the RMMG (i.e. 2 * 665EUR) per worker covered by the above measures, paid in a phased manner over six months.

This Ordinance also has additional financial support: An employer that, during the first half of 2021, benefits from simplified support, which, in the month of June 2021, remains in a situation of business crisis, under the terms of article 3. of Decree -Law no. 46 -A / 2020, of July 30, in its current wording, and which, in 2021, did not benefit from extraordinary support for the maintenance of an employment contract, under the terms of article 2 of Decree -Law no. 6 -E / 2021, of January 15, in its current wording, or extraordinary support for the progressive resumption of activity provided for in article 4 of Decree -Law no. 46 -A / 2020, of July 30, in its current wording, is entitled to request, between the months of July and September 2021, an additional support in the amount of RMMG per worker covered by this support, paid in one lump sum.


• What is the deadline for applying for support?


This incentive must be requested by May 31. With regard to additional support, IEFP's application opening notices must be awaited.


What is the deadline for obtaining a decision?


The IEFP issues a decision within 15 working days from the date of submission of the application, and this period is suspended when there is a need for clarification or additional information.


Finally, it should be noted that the employer cannot benefit, simultaneously or sequentially, from the new incentive to standardization and simplified support.


For details: gabinete.juridico@aip.pt.