Social security contributions to be cut to help companies

The Portuguese government has suspended the payment of companies’ social security contribution payments called the Single Social Tax (TSU) scheduled for Friday 20th, so they do not have to make the payment on this date, Ministry of Labour, Solidarity and Social Security said in a statement.

The Government also said that the terms of the postponement of benefit contributions and the definition of the respective rules will be regulated, “companies won’t have to make the payment on [Friday]”.

Measures to support companies have been announced this week such as credit lines to support company treasuries totalling 3 billion euros for the sectors that have been worst affected by the Covid-19 pandemic, a moratorium by banks on the payment of capital and interest and the reduction to one-third of companies’ contributions to Social Security in March, April and May.

Cabinet is to meet this Friday to discuss social and economic support measures for families and for sectors of activity such as shops and the hospitality industry.

The new coronavirus, responsible for the Covid-19 pandemic, has infected more than 235,000 people around the world and more than 9,800 have died.

In Portugal, the Directorate General for Health (DGS) raised the number of confirmed cases of infection to 785 on Thursday, 143 more than on Wednesday. The number of deaths in the country has risen to four.

The president of Portugal, Marcelo Rebelo de Sousa, decreed a state of emergency on Wednesday – approved by parliament, after a favourable opinion from the government – which provides for the possibility of compulsory confinement of citizens at home and restrictions on movement on public roads, unless justified.