First Amendment To Law No. 110/2009, Of September 16, Which Establishes A New Date For The Entry Into Force Of The Code Of The Contributory Schemes Of Social Security Insurance System

Original Language Title: Primeira alteração à Lei n.º 110/2009, de 16 de Setembro, que estabelece uma nova data para a entrada em vigor do Código dos Regimes Contributivos do Sistema Previdencial de Segurança Social

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Parliamentary Group 1 Group draft law No. 48/XI first amendment of law 110/2009, of September 16, which establishes a new date for the entry into force of the Contributory Code I – analysis of the socio-economic situation the XVII constitutional Government presented in the Assembly of the Republic the draft law No. 270/X, Approves the code of the contributory schemes of the Social Security Contributions System , which, like the vote of the Socialist majority, came to lead the law 110/2009, of September 16 2009.

The Act came about as a result of the agreement between the Government and the social partners, on the reform of Social Security, dated October 2006. What constitutes a difference of 2 years in relation to the presentation of the draft law, which only occurred in late 2008 and a delay of almost 3 years in relation to the publication of the law. In this timeline, the economy suffered a drastic setback and, currently, we are experiencing a severe economic and financial crisis, without any end forecast, which has translated into a large number of plant closures, with a sharp rise in unemployment figures and the negative growth of our economy.

Currently, according to September data from the Institute of employment and vocational training, unemployed people are 510356, which means an increase of almost 30% compared to September 2008. The National Statistics Institute put forward a 9.1% unemployment registered in Portugal in the second quarter of 2009, which translates into 507,700 unemployed in relation to the 3rd quarter of 2006, the entity was located 7.4% us unemployment, which means 417,400 unemployed. The analysis from two numbers stands out that unemployment increased by about 100000 unemployed since it was signed the agreement between the Government and the social partners.

At present the country is in a situation of negative inflation, of -1.6%, which comes 2 being below 0 for some months and, of which, there are no predictions of rapid ascent.

In relation to gross domestic product, the National Institute of statistics, announced that in the second quarter of 2009, the growth of -3.7%, comparing with the same period in 2008, down 4%, because it was situated on 0.7%.

During the first half of 2009 there was an increase of about 43% of the shares in which it was declared bankruptcy by the Court. The Presentation of insolvency by the company itself had an increase of 119%. The total number of actions/decisions of insolvency in Portugal had a very significant increase, 64.7% of 1387 shares published in the first half of 2008 to 2285 shares published in the first half of 2009. On the contrary, with regard to the establishment of new companies, there has been a decrease of about -17%.

We understand that the present Government should take is to the Permanent Council of the Social dialogue, in order to make a new impact how the entry into force of the law 110/2009, of September 16, interferes in the lives of companies and workers, having regard to the new socio-economic situation that the country is experiencing.

II – impact of the entry into force of law No. 110/2009, of September 16 the law 110/2009, of September 16 the systematization of normative acts that regulate all contributory legal relationship between taxpayers and the Social security contributions system.

However, it's not just the coding of all legislation relating to the contributory Social security system that is at stake in this law are introduced profound changes in contributory and contributory base exists, whether at the level of the employer, whether at the level of the worker or self-employed workers.

One of the most significant changes with respect to the contributions of the agricultural workers. The regime is still in force, in relation to employees, distinguishes two different situations, differentiated and undifferentiated farm workers. The contribution rate of agricultural workers is currently distinguished from 32.50%, and 23%, respectively and 9.50% for employers and workers. For its part, the contribution rate of agricultural workers is currently unsorted 29%, and 21%, respectively and 8% for employers and for workers 3. With the current law over the distinction between differentiated and undifferentiated farm workers and went on to be a single contribution rate for agricultural workers who happened to be of 33.3%, respectively, of 22.3% and 11% for employers and workers. With regard to the existing regime of workers the rate goes up 4.3%.

With regard to independent agricultural workers and service providers also experienced substantial changes. Currently, the rate of agricultural producers and their spouses whose income comes solely from agricultural activity is 30.4% in the extended schema and 23.75% in compulsory (it should be noted that the vast majority of agricultural producers opt for compulsory scheme). The Contributory Code provides for a single rate of 28.3%, which will imply an increase of 4.55%, in relation to the compulsory scheme. However, changes that are made to the system of independent agricultural workers are not limited to the worsening rate because there are changes to the contributory base. At present the amount of the contributions is calculated on the basis of a conventional remuneration, chosen by the beneficiary, of between 10 levels determined by reference to the Social support Index, which causes most self-employed workers opt for lower tier, that is, pay a monthly contribution of 149,35€. With the law 110/2009, of September 16, the contributory base became the rank of remuneration determined by reference to the twelfth relevant income worker calculated based on 20% of the sales value of the calendar year preceding the fixing of the base pay, in the case of agricultural producers and 70% of the total amount of service in the calendar year preceding the establishment of the contribution base. This amendment will drastically change Social security contributions of agricultural producers and service providers. Denotes that there is a wrong adjustment on the basis of contributory incidence a Social Security rate should not be applied over a value of sales or services, but rather on income.

These changes concerning the tax base not only self-employed persons which are agricultural producers, reach similarly traders and the self-employed that are service providers. Also the producers or traders come from the Social Security rate be increased from 25.4% in compulsory scheme, to the single rate of 29.6%, i.e. increases 4.2 percentage points.

Another change of profound impact lies in the changes to the reserve base contributory 4 targeted employers and workers celebrate labor contracts on behalf of another person. With the entry into force of the code constitutes a Contributory enlargement of contributory tax base, in particular in the following situations: a) predetermined representation expenses; b) family allowances by failures; c) values of meal allowances, whether allocated in cash or in securities of meal; d) The diuturnidades and other values established on the basis of seniority of workers at the service of their employer; and) subsidies for Christmas, Easter, holiday and others of similar nature; f) the amounts allocated under allowances, travel allowances, travel expenses and other equivalent; (g)) the amounts allocated to the workers by way of participation in profits of the company, provided that the worker is not ensured by contract a remuneration right, proper, or mixed variable to your work; h) expenses resulting from the use by the worker's personal automobile car running costs to the employer; I) transport costs, financial or not, supported by the employer to defray the travel for the benefit of workers; j) Amounts received for the use of own car in the service of the company; l) compensation for termination of contract working for agreement, in situations with the right to unemployment benefits; m) The amounts spent by the employer with financial investments, in favour of workers, in particular, life insurance, pension funds and savings plans, retirement or any supplementary social security schemes, when they are the subject of ransom, advance, redemption or any other form of anticipation of corresponding availability, or in any case of receipt of capital before the date of transition to the status of pensioner or outside the legally defined conditions; n) performance-related benefits obtained by the company when it wants in its title assigned either by your regular and permanent assignment are stable character regardless of the variety of their amount; the) All those that are assigned to the employee, on a regular basis, in cash or in kind, directly or indirectly in return for the provision of work when the same is foreseen according to criteria of objectivity, although subject to conditions.

5 III – conclusion to the entry into force of the code on day 1 of Contributory January 2010 the economic situation of the workers and the employers will change substantially, as verified the value of Social security contributions will increase very conclusive.

In addition to these worsening denotes that the Contributory Code is not yet regulated, which, alone, will impede the perception of companies and workers if the Contributory Code get into force on 1 January 2009. Article 4 of Law 110/2009, of September 16, requires the regulation by decree-law or by Regulatory Decree, that hasn't happened.

It should combine the current economic and social situation that the entry into force of the new Social Rate Only, a positive aspect of the new Contributory Code will only be in 2011, which reinforces the idea of the entry into force of the remaining Diploma be also in 2011.

We believe that this situation is unacceptable, more considering the current times of crisis that the country, and to this end we present this draft law, for ensuring a postponement of one year from the entry into force of law No. 110/2009, of September 16.

In these terms, members of the Partido Popular-CDS feature the following draft law: article 1 is changed to law nº. 110/2009, of September 16, article 6, which shall be replaced by the following: "article 6 entry into force 1-this law shall enter into force on the 1 January 2011 day. 2-the provisions in articles 277 to 281 will have as the first reference year for entry into force the year of 2011, adapting consecutively the following years. "6 article 2 the entry into force referred to in the previous article will be preceded by an evaluation meeting of the Permanent Committee of Social dialogue Assembly of the Republic, November 9 Members 2009