Reduction of the TSU costs 40 million euros to the Social Security – Diário de Notícias – Lisbon

Minister Vieira da Silva confirms that low for the companies that pay the minimum wage will have an impact that will be “positive.”

The minister of Labour said today that the reduction of the Unique Social tax (TSU) to the companies that pay the minimum wage will cost 40 million euros to Social Security in 2017, but it is an impact that will be “positive”.

The Government and the social partners reached on Thursday an agreement in principle medium-term, based on Social Dialogue, without the CGTP, which includes, in the immediate future, the update of the national minimum wage (NMW) for the 557 euros, from 1 January, alongside the reduction of the TSU by 1.25 percentage points to the employers.

“The most important was the commitment to support the fixing of the NMS in 557 euros 01 January, but this commitment has other equally important, namely, that, in 18 months, is guaranteed the stimulus to collective bargaining is not using the principle of the expiry of the collective agreements,” said the minister Vieira da Silva.

The ruler stressed that this reduction of the TSU, which earned the repudiation of the CGTP, “is transitive, it has already happened other times, and was considered by the Government support that is justified for some companies that have difficulty in supporting this transition.”

Vieira da Silva is considered to be an agreement that demonstrates “that it is possible to reach a consensus extended, internally and externally”, and showed the existence of a “common understanding of the partners”, according to which “it is necessary to give a boost to collective bargaining”.

with Respect to the financial impacts of the measure, the reduction of 1.25 percentage points in the TSU paid by employers will have a negative impact of 40 million euros in the coffers of Social Security, but Vieira da Silva stated that, “even with this reduction, the global balance is positive”.

Currently, the national minimum wage is 530 euros, and get to the 557 euros, in 2017, and to 580 euros in 2018, before you reach up to 600 euros, in 2019, in accordance with the commitment assumed by the Government.

In the document that serves as the basis of the agreement of the medium-term, the executive has not subscribed to the value of 600 euros, but Vieira da Silva’s assured to treat yourself to a commitment made by the Government in its program, and that will be fulfilled.

At the end of the meeting, which lasted close to four hours, the secretary-general of the CGTP, Arménio Carlos, he regretted profoundly that the Government has not had the courage to break with the pressures of the business confederations”, rejecting to sign an agreement that “is a basket of Christmas with lots of perks” for the bosses.

Although it is against the reduction of the TSU, the secretary general of the UGT, Carlos Silva, considers that the failure of the Government to commit to introduce, in January, the Green Book of Labour Relations and to encourage collective bargaining, and justifies the agreement of the union structure to this medium-term

as for the employer associations – Business Confederation of Portugal (CIP) and the Confederation of Trade and Services of Portugal (CCP) – have signed the agreement, despite defending an upgrade from NMS to a lower value, of 540 euros.

“we Finally have an agreement of medium-term competitiveness, and that goes beyond the minimum wage,” said the president of the CIP, António Saraiva”. To the president of the CCP, Vieira Lopes, “a principle balanced”, which highlighted “the collaborative posture, and the evidence of good will” manifested by the bosses.

according To the third report on the impact of the rise in the minimum wage, presented by the Government to the social partners in September of this year, about 21% of workers in Portugal, namely, 648 thousand, were paid the national minimum wage.