Partial benefit for termination of activity

Portugal
Phase: Management
Típus:
  • Income support for workers
Utoljára módosítva: 10 September, 2020
Név:

Subsídio parcial por cessação de atividade

Angol név:

Partial benefit for termination of activity

Coverage/Eligibility

This benefit is available to economically dependent self-employed, if the worker continues to exercise a professional activity whose income is less than the amount, accorded by Decree Law 12/2013 of 25 January, of the benefit for termination of activity (maximum of 2.5 times the Social Support Index, which is €438,81 in 2020 – 2.5 x €438,81 = €1,097.03).

The benefit for termination of activity will be determined in line with the following cumulative rules:

  • involuntary termination of the service contract with the contracting entity;
  • 360 days of activity as a self-employed worker with registered payslips for a period of 24 months immediately prior to the date of termination of activity;
  • the self-employed worker has been considered economically dependent of contracting entities for the civil year immediately prior to the date of termination of activity;
  • the self-employed worker has been considered economically dependent at the moment of termination of activity;
  • registration in the Employment Centre of the beneficiary’s area of residence.

Main characteristics

The partial unemployment benefit for termination of activity is a benefit in cash attributed to the self-employed in situations where the worker, after involuntary termination of the contract of service with the contracting entity, retains a professional activity whose monthly income is less than the amount of the benefit for termination of activity (maximum of 2.5 times the Social Support Index, which is €438,81 in 2020 – 2.5 x €438,81 = €1,097.03).

The entitlement period depends on the age of the beneficiary and the number of months with registered earnings for social security purposes (at least 24 months are required); more specifically, entitlement ranges from 330 days for beneficiaries aged under 30 years, to 540 days for beneficiaries aged 50 years or older.

The partial benefit for termination of activity corresponds to the difference between the unemployment benefit the worker is entitled plus 35%, and the pay for the new part-time job.

Funding

  • National funds

Involved actors

National government
Ministry of Employment, Solidarity and Social Security (Ministério do Emprego, da Solidariedade e Segurança Social) - legal framework and funding.
Public employment services
Institute for Employment and Vocational Training (Instituto do Emprego e Formação Profissional, IEFP).

Effectiveness

In 2019, 30 self-employed people benefited of this measure, representing an increase of 30% compared to 2018 and of 76.5% to 2015.

Number of beneficiaries:

2015:17 self-employed people;

2016: 28 self-employed people;

2017: 27 self-employed people;

2018: 23 self-employed people;

2019: 30 self-employed people.

Strengths

According to the Institute for Social Security, it favours a gradual integration of the unemployed into the labour market, without losing their social protection.

Weaknesses

No information available.

Példák

No information available.
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