Social Security - Non-Regular Remunerations

Exemption from Contributions

This subject is regulated by the Executory Decision nr. 12/83, of 12th February, namely its article 2nd, paragraph d).

The attendance and productivity bonuses or others, provided they are not regular, will not be subject to Social Security.

The periodicity does not have to be monthly or yearly, the important is that it is not regular.

Bonuses granted on a periodic and continuous basis and that create in the worker the expectation of its receiving, intended to satisfy the needs of the family budget, are considered as being regular.

Regarding sporadic bonuses, only paid (for example) because certain levels of invoicing have been reached, these payments always being casual ones, it seems to be obvious that there is no regularity.

Some amounts of money granted to workers are exempt from Social Security, provided they do not exceed the respective limits, so they are not embraced in this analysis: Living Allowance, Allowance for omissions, Meal Subsidy, Compensation for lapsing of the work contract and compensation for using one's own car.  

We back this notice on the analysis of various experts’ opinions whenever there is lack of clearing up of the law from the Social Security, being sure that it is incumbent on this latter to have the final decision on this matter.

Social Security Opinion

Pursuant to art. 2nd of the Executory Decision nr. 12/83, of 12th February, with the alterations introduced by the Executory Decisions nr. 53/83, of 22nd June, and 14/88, of 30th March, the remunerations – to which the worker is entitled to for the fulfilment of his/her duties and for termination of the contract, according to the work contract, its rules or uses – are the basis of assessment for the social security.

Pursuant to paragraph d) of the above-referred article, bonuses of output, productivity … and similar ones, which are regular, are object of basis of assessment for the social security.

Simultaneously the social security uses the concept of labour reward, which was recently object of a forecasting in the Labour Regulations.

In other words, in compliance with its art. 49th, the reward whilst against work performed by the worker to his/her employee includes the basic remuneration and all the regular and periodic payments granted, direct or indirectly, in cash or in kind.

Thus, the rewards, productivity bonuses etc. granted by the firms to the workers are assumed to be a compensation so, in such manner, is object of basis of assessment for the social security.

It is further said that it is always incumbent on the employee to refute such presumption, that is to say, that such money are not regular or periodic, that is, are not considered to be a reward and, thus, exempt them from the payment of social security contributions.

Yours Faithfully.

Framing Department, Binding, Welfare Care to Family / Framing Unit and Binding.

Opinion from Superior Administrative Court

Also related with this subject, we make available the Opinion from Superior Administrative Court, issued on 10 January 2007.

Social Security Website

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This note is only for information and does not hold its divulgers responsible. For thorough information you must consult the Law.