Employment support measures

2 October 2024 5 min read

By Catarina Santos Ferreira and Joana Varela Teixeira

At a glance

Following the government's announcement to implement several measures to support employment, on 23 September 2024, several orders were published creating programmes to boost the labour market.
The first order creates and regulates the INICIAR Internships measure.
The second creates and regulates the +Emprego Programme.
The final order creates and regulates the +Talento Programme.

Following the government's announcement to implement several measures to support employment, on 23 September 2024, several orders were published creating programmes to boost the labour market.

INICIAR Internships

This measure supports the integration of unemployed people who are registered with the Institute for Employment and Vocational Training (IEFP), aged 18 to 35, with level 4 or 5 qualifications from the National Qualifications Framework (NQF), or employees whose contracts have been suspended due to unpaid salaries.

Internships last up to six months (12 months for people with disabilities) and include a monthly grant (up to 1.8x the Social Support Index which is currently EUR509.26 (IAS)), along with a meal or transport allowance for people with disabilities, and paid holidays when the contract lasts 12 months.

The IEFP subsidises the internship grants (up to 80% in some cases), meal or transport allowances (within limits), and work accident insurance. Support payments are made in two instalments (three for people with disabilities). If the promoting organisation fails to meet its obligations, financial support will cease immediately and may require a total or partial refund.

Trainees are treated as employees for tax and social security purposes.

Companies can apply to be promoters if:

they are regularly constituted and are legally operating;
have regularised tax and contributory status;
are not in breach of any financial support granted by the IEFP;
have organised accountancy;
do not have any unpaid salaries; and
have not been convicted of a serious or very serious labour crime or administrative offence in the last two years.

The IEFP will announce the application submission period annually. The implementation of this measure also depends on regulations to be issued by the IEFP within 30 working days of the publication of the Order.

+Emprego Programme

This programme introduces financial support for the execution of full-time, open-ended employment contracts of unemployed people who have been registered with the IEFP for three consecutive months or employees whose employment contract has been suspended due to unpaid salaries.

Companies can apply to be an employer within the scope of this measure if:

they are regularly constituted and are legally operating;
have regularised tax and contributory status;
are not in breach of any financial support granted by the IEFP;
have organised accountancy;
do not have any unpaid salaries; and
have not been convicted of a serious or very serious labour crime or administrative offence in the last two years.

For companies to be eligible for financial support they must:

register the job offer before hiring the employee;
not have made a collective dismissal or redundancy in the last three months;
create net employment;
maintain the level of employment and the contract for 24 months; and
provide vocational training.

The financial support is 12x the value of the IAS and may be increased by 35% in some situations (eg hiring young people up to the age of 35). The support can be cancelled in cases of mutual termination agreements (implying partial restitution) or in the event of collective or unlawful dismissal (total restitution). This support is not cumulative with other employment access support.

The IEFP will define and publicise the period for submitting applications.

+Talento Programme

This programme creates two measures: Internships + Talento and Jobs + Talento.

Companies can apply to be promoting organisations for the + Talent Internships or for + Talent Jobs, if

they are regularly constituted and are legally operating;
have regularised tax and contributory status;
are not in breach of any financial support granted by the IEFP;
have organised accountancy;
do not have any unpaid salaries; and
have not been convicted of a serious or very serious labour crime or administrative offence in the last two years.

+Talento Internships

This measure supports the execution of internship contracts for unemployed individuals registered with the IEFP, aged 18 to 35, with level 6 qualifications from the NQF, or employees whose contracts have been suspended due to unpaid salaries.

Internships last up to six months (12 months for people with disabilities) and include a monthly grant (up to 2.6x of the IAS), along with a meal or transport allowance for people with disabilities.

Trainees are treated as employees for tax and social security purposes.

The IEFP will announce the application submission period annually.

+Talento Jobs

This measure aims to financially support the execution of open-ended employment contracts for unemployed individuals registered with the IEFP, aged 18 to 35, whose salary (as specified in the employment contract) meets or exceeds the entry-level salary of a graduate in the general career of a Superior Technician in Public Administration. It also includes employees whose contracts have been suspended due to unpaid salaries.

To be eligible for financial support, companies must:

register the job offer before hiring the employee;
not have made a collective dismissal or redundancy in the last three months;
create net employment;
maintain the level of employment and the contract for 24 months; and
provide vocational training.

The financial support is 18x the value of the IAS and may be increased by 35% in some situations (eg hiring young people up to the age of 35). The support can be cancelled in cases of mutual termination agreements (implying partial restitution) or in the event of collective or unlawful dismissal (total restitution). This support is not cumulative with other employment access support.

The IEFP will define and publicise the application submission period.