Daniel Amarale-legal

I.  EDITORIAL – Social Support Indexant

Within the first days of the year, many of the measure foreseen in the State Budget for 2018 were implemented. The Ordinance n.º 21/2018, of 18th of January, is one of the most relevant new measures, after updating the value of the Social Support Indexant (“IAS”) in € 428,90.

This is the largest increase of the IAS since 2008, after a long period were it was frozen (2009 – 2016). The value of the IAS is relevant to calculate many of the Social Security benefits, such as the unemployment benefit, sick leave, employment contributions and other allowances.

In January, it was approved the Budget of the Autonomous Region of the Azores (Regional Legislative Decree no. 1/2018/A of January 3) and Madeira (Regional Legislative Decree no. 2/2018/M of January 9) for the year 2018.

In the context of case-law, we point out the Judgment of Portuguese Constitutional Court of January 22, Case no. 848/2017, which judged to be unconstitutional, with mandatory legal force, the rules concerning Municipal Civil Protection Tax. The Lisbon Municipality will now return millions of euros of this tax, which was enforced between 2015 to 2017.

Finally, concerning miscellaneous issues, it is worth mentioning the advance payment of another tranche of the loan with the highest interest rate to International Monetary Fund (FMI), as well as the fall in the unemployment rate to 8.4%.


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