EMCC European Monitoring Centre on Change

Partial unemployment benefit

Portugal
Phase: Management
Tip:
  • Income support for workers
  • Working time flexibility
Last modified: 10 September, 2020
Domače ime:

Subsídio de Desemprego Parcial

Angleško ime:

Partial unemployment benefit

Coverage/Eligibility

Beneficiaries receiving or claiming unemployment benefit who begin to work as employees with a part-time contract or as self-employed.

Main characteristics

The partial unemployment benefit allowance is equal to the difference between the standard monthly unemployment insurance benefit (increased by 35%), and the amount of earnings resulting from the activity as employee. In case of self-employed activity, the monthly allowance corresponds to the difference between the amount of the unemployment insurance benefit increased by 35%, and 1/12 of the annual taxable income resulting from this self-employed activity.

Example: A beneficiary who receives €500 unemployment benefit and will work part-time with a remuneration of €350.

  • Calculate 35% for the unemployment allowance €500 x 0.35 = €175;
  • Add this value to the amount of unemployment benefits €175 + €500 = €675;
  • Subtract the amount of salary for part-time work. The result is the monthly amount of the partial unemployment benefit that the beneficiary is entitled to: €675 - €350 = €325.

The duration of the partial unemployment benefit is the same of the part-time contract or as self-employed, but is limited to the time for which it is expected to receive the unemployment benefit.

Partial unemployment benefit can be enhanced through compensation payments and pensions for occupational risks.

Funding

  • National funds

Involved actors

National government
Ministry of Employment, Solidarity and Social Security (Ministério do Emprego, 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

Over the last years the number of unemployed people who have benefited from this measure have been decreasing: in 2019, 10,941 people have benefited from partial unemployment benefit, 220 less than in 2018 and 3,506 less than in 2015 (representing a decrease of 2% and 32%, respectively).

Strengths

According to the Institute for Social Security, the measure increases the monthly income of the individual concerned. It facilitates the gradual integration of the unemployed people into the labour market, without losing their social protection.

Weaknesses

No information available.

Examples

No information available.
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