Thursday, January 26, 2017

António Costa announces a reduction of 100 euros from march – News up to the Minute (press release)

“what’s going to be real for the companies is that already in march, when they will proceed to the first payment of the year of the PEC, saving your charges lessened fruit of approval in the Assembly of the Republic of the draft law that the Council of Ministers today approved, after having heard the social partners and after having secured its approval in the Assembly of the Republic,” said the head of the Government.


António Costa, who was speaking at the press conference after the weekly meeting of the Council of Ministers, explained that “until 01 January 2019, there will be a reduction of the PEC for all the companies subject to the payment, either in 2017 or in 2018, and this reduction will have a common component of 100 euros abatement to the collection and more 12,5% the remainder of the collection paid by each company.”

The draft law adopted today by the Council of Ministers “envisages that on the day of 01 January 2019 to enter into force a new regime for simplified, extended to other companies, allowing them to reduce bureaucratic burden and have a surveillance reduced”, said the prime minister.

the head of The Government revealed that this measure will have a financial impact on the companies “equivalent to that which would the extent that the Government had previously negotiated a reduction of the TSU [the unique Social tax]“, that is, of eur 40 million.

This solution adopted today by the executive will encompass approximately 122 thousand companies, said António Costa, adding that it will be “a universe broader than the companies that last year were covered by the reduction of the TSU”.

since the reduction of the PEC does not cover Public Institutions of Social Solidarity (IPSS) or other non-profit entities, since these are exempt from the payment of corporation tax, the minister of Labour, Vieira da Silva, “will negotiate with these entities support measures are properly compensated for this year,” concluded António Costa.

On Wednesday, the PSD, the Bloc of the Left, the PCP and the PEV overturned in the parliament the decree law which provided for a temporary drop of the TSU of the employers by 1.25 percentage points as compensation for the increase in the national minimum wage for the 557 euros in 2017.

In the wake of the lead, the prime minister, António Costa, met immediately with the employer confederations, the UGT and the CGTP – which is not a signatory to the agreement of 22 December -having this structure, the trade union held a meeting.


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