Partial benefit for termination of activity

Portugal
Phase: Management
Tip:
  • Income support for workers
Ultima modificare: 31 July, 2020
Nume nativ:

Subsídio parcial por cessação de atividade

Denumirea în lb. engleză:

Partial benefit for termination of activity

Coverage/Eligibility

This benefit is available to self-employed workers, if the worker continues to exercise a professional activity corresponding to 20% or less of the total annual income following the termination of the service contract with the contracting entity.

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; 
  • 720 days of activity as a self-employed worker with registered pay-slips for a period of 48 months immediately prior to the date of termination of activity;
  • the  self-employed worker having been considered ecomomically dependent of contracting entities for at least two civil years, one of them being immediately prior to the termination of the service contract;
  • 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 corresponding to the remaining 20% or less of the total annual value of their labour income.

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 unemployment benefit for termination of activity corresponds to the difference between the unemployment benefit the worker was receiving 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.
Employer or employee organisations
Institute for Employment and Vocational Training (Instituto do Emprego e Formação Profissional, IEFP).

Effectiveness

Number of beneficiaries:

  • January - December 2015:15;
  • January - June 2016: 14.

Strengths

It favours a gradual integration of the unemployed into the labour market, without losing their social protection.

Weaknesses

No information available.

Exemple

No information available.
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