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Updating of Guaranteed Minimum Monthly Pay (“RMMG”)

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Updating of Guaranteed Minimum Monthly Pay and Public Administration remunerations

Decree-Law 109-B/2021 was published on 7 December, approving the update of the guaranteed minimum monthly pay (“RMMG, on its Portuguese acronym”) and creating an exceptional compensation measure.

More precisely, bearing in mind the objective of increasing the RMMG expressly foreseen in the Programmes of the XXI and XXII Constitutional Governments, and despite the current pandemic context, the Decree-Law has established the increase of the RMMG to EUR 705, with effect from 1 January 2022.

This diploma also created an exceptional compensation support measure for the RMMG. More specifically, employers, as well as individuals with one or more employees at their service, will be entitled to a cash benefit per employee, paid as a lump-sum by IAPMEI – Agência para a Competitividade e Inovação, I. P. (IAPMEI, I. P.) [IAPMEI — Agency for Competitiveness and Innovation], or by the Instituto do Turismo de Portugal, I. P. (Turismo de Portugal, I. P.) [Tourism Institute of Portugal], according to the respective EAC (Economic Activity Classification) of employers.

The value of the cash benefit will be determined according to the value of the basic remuneration stated in the employee’s remuneration statement for the month of December 2021.

In the case of an employee who, in the remuneration statement for the month of December 2021, had a declared base remuneration amount equivalent to the RMMG for 2021 [EUR 665.00], the cash benefit shall be of EUR 112.00.

In the case of an employee who, in the remuneration statement for the month of December 2021, had a declared base remuneration amount higher than EUR 665.00 [RMMG for 2021] and lower than EUR 705.00 [RMMG for 2022], the cash benefit shall be of EUR 56.00.

Finally, in the case of an employee who, in the remuneration statement for December 2021, had a declared base remuneration amount higher than EUR 665.00 [RMMG for 2021] and lower than EUR 705.00 [RMMG for 2022], provided that such value was foreseen in a collective labour regulation instrument concluded, revised or amended in 2021, and that, in December 2020, the declared basic remuneration was lower than the RMMG for 2021 [EUR 665.00], the cash benefit shall be of EUR 112.00.

Increases of Public Administration remunerations

At the same time, it is also important to refer to Decree-Law 109-A/2021, of 7 December, which updates the remuneration of the Public Administration and increases the respective remuneration base.

In effect, the basic remuneration in the Public Administration was also updated to the amount of EUR 705.00, with effect from 1 January 2022.

As a result, whenever the base remuneration applicable to the career, category, or contract is less than EUR 705, this shall be the amount that the employee will be paid, with the consequent placement in the corresponding remuneration position.

Likewise, the value of the monetary amounts of the single remuneration table was updated by 0.9%, as well as the value of the basic monthly remunerations existing in the Public Administration.

Beatriz Correia Mendes, Associate Lawyer

bcmendes@bas.pt

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