The deadline for paying the Christmas subsidy is Monday, December 15, as stipulated in the Labor Code.
The Labour Conditions Authority (ACT) reminded the public via a post on Instagram: “Remember that the Christmas subsidy must be paid by December 15“.
According to the Labor Code, employees are entitled to a Christmas subsidy equivalent to one month’s salary, which must be paid by December 15 each year.
When is the Christmas subsidy received?
The Santander blog Salto outlines the following timelines:
- Private sector employees should receive it by December 15 each year;
- Public sector employees generally receive this sum in November;
- State pensioners, registered with the Caixa Geral de Aposentações, receive it in November with their pension;
- Social Security retirees, who make up the majority in the country, receive it in December with their pension.
Who is eligible?
All payroll employees, both in the public and private sectors, are entitled to this subsidy. In addition, it covers:
- Administrators and managers of legal entities, if the right is proven and other legal conditions are met;
- Pensioners;
- Those on parental leave;
- Those on sick leave.
Excluded groups include:
- Self-employed workers;
- Beneficiaries of voluntary social insurance;
- Beneficiaries whose extended sickness absence led to professional illness subsidy.
‘Work and taxes (un)complicated’ is a column by Dantas Rodrigues in Notícias ao Minuto, dealing with issues related to work, personal finance, and taxes. Here’s the answer to Friday, November 27’s question.
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How is it calculated?
According to the Salto blog, “the calculation of the Christmas subsidy considers your gross salary and the actual number of working days—days off or on leave are not included.”
“Typically, it equals 100% of the gross salary. For instance, if the gross salary is 1,200 euros, the same amount is received as a subsidy,” it states.
It is important to note that “meal allowances are not included in the base salary.”
If you haven’t completed a year of work, the calculation is as follows: Christmas Subsidy = (Base Salary / 365 days) x Number of days actually worked in the company.
Practically, the Christmas subsidy is subject to withholding tax for IRS and contributes to Social Security. This amount is autonomously taxed.
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