This post is part of a collaborative effort between Startup Portugal, The Next Big Idea, and Sapo24, meant to create relevant content to tackle the Covid19 pandemic.
Content available in Portuguese.

Following the pandemic of Covid-19, many workers who are part of the so-called Gig Economy — the concept was given to the segment of liberal professionals or freelancers —, are eager to understand what is going to happen. Companies are already closing temporarily and, in some cases, permanently. Layoffs (temporary reduction of normal working periods or suspension of employment contracts carried out by the companies, which can range from one to six months) are on their way. In addition, customers are postponing or cancelling new projects, if not the current ones.

For self-employed workers, known as workers with “Recibos Verdes”, the uncertainty is even greater. Many of them are already suffering the consequences of this pandemic: those who are parents have seen their availability reduced with the closing of schools and many are being dismissed as a result of the new conditions that the situation requires.

Given this situation, the Portuguese Government has sought to address the needs of companies and to support families, dependent workers and self-employed workers. In this context, some measures have already been published in Diário da República and are already in place.

Support for self-employed workers due to family assistance

This measure applies to self-employed workers who are unable to use remote work and who have to stay at home with children under the age of 12 or with disabilities (whose schools have been closed).

Who

• Self-employed workers on an exclusive basis (and not a pensioner) who have Social Security deductions made in at least 3 consecutive months of the last 12 months.

How

• Through “Segurança Social Direta” website (Direct Social Security);

• Access to “Perfil” (Profile) / “Documentos de prova” (Proof Documents) / “TI – Reclamação” (TI – Complaint) – it is not yet available a specific subject for Covid-19;

• Fill and submit your form that will be available soon (it is expected to be available by the end of March);

• Support is automatically granted upon the self-employed worker’s request, provided there are no other way of activity output, namely remote work.

How much time

• Support will be granted during the period in which the school is closed unless it coincides with school holidays.

Support value

• A third of the monthly contribution tax base of the first trimester of 2020 (which corresponds to 70% of the self-employed worker’s income);

• Minimum threshold value – 438,81€ (value of “IAS – Indexante de Apoios Sociais”);

• Maximum threshold value – 1097,03€ (2,5x the value of IAS).

If the school is closed for less than one month, the employee receives the proportional amount.

Notes

• This support cannot be granted simultaneously by both parents. It is only granted once, regardless of the number of dependent children or dependents.

• This support cannot be granted if one of the parents is in authorized remote work.

Protection for self-employed workers due to stoppage of activity

This support applies to self-employed workers on an exclusive basis who are left without work for reasons related to the coronavirus (interruption of the activity in their workplace, layoff of the company where they provide services, etc.).

Who

• Self-employed workers on an exclusive basis (and not a pensioner) who have Social Security deductions made in at least 3 consecutive months of the last 12 months.

Requirements

• Ability to prove you are in a situation of total interruption of your activity as a result of coronavirus.

How

• Through “Segurança Social Direta” website (Direct Social Security);

• Access to “Perfil” (Profile) / “Documentos de prova” (Proof Documents) / “TI – Reclamação” (TI – Complaint) – it is not yet available a specific subject for Covid-19;

• Submit declaration:

  • Self-declaration of honour – if you are not legally obligated to have a certified accountant;

  • Certified accountant’s statement – if you are legally obligated to have a certified accountant;

  • Include full name, Social Security number (NISS), Tax Identifier number (NIF) and the date your activity stopped.

How much time

• 1 month, but can it be renewed monthly up to a maximum of 6 months.

Support value

• 70% of the average income for the last quarter – if you are not legally obligated to have a certified accountant;

• 70% of the average income for the last year – if you are legally obligated to have a certified accountant;

• Support limit – 438,81€ (value of IAS – Indexante de Apoios Sociais);

• Start of payment – month after submission of the application.

In this case, income means the value of the remuneration recorded to calculate the monthly contribution tax base

Important

• The submission of the quarterly declaration for Social Security continues to be mandatory;

• Mandatory contributions during the period that the self-employed worker is receiving this support can be delayed;

• Those same delayed contributions have to be paid from the second month after the end of the support. The payments can be made at most in 12 months, in monthly and equal instalments;

• Both the deferral of contributions and the monthly payment after the end of the support must be requested via Direct Social Security (“Segurança Social Direta”);

• This support cannot be combined with the social protection support for parents who have to stay at home to accompany their children whose schools have been closed.

These measures seek to address the status of self-employed workers with the status of dependent workers and respond immediately to the problems that the Covid-19 pandemic is bringing, in particular, to the Gig Economy.

Other measures are being prepared and will be implemented shortly. We will update this article with these new measures or if there are any changes to those described in this article.