Press Release from the Council of Ministers

Extraordinary Council of Ministers Meeting of February 1st

Several measures were approved by the Council of Ministers in response to the state of calamity caused by storm “Kristin,” namely:

1. a. Exemption from social security contributions

An exceptional and temporary regime is established providing for a total or partial exemption from the payment of social security contributions, which cannot be combined with other extraordinary measures serving the same purpose.

The exemption shall apply for a period of up to six months, renewable for an equal period in the case of total exemption but extended to one year for partial exemption corresponding to 50% of the employer’s contribution rate.

1. Simplified regime for reduction or suspension of activity in situations of business crisis

It is provided that an employer who finds himself in a situation of business crisis and can prove it may resort to the regime of temporary reduction or suspension of employment contracts set out in Articles 298 and following of the Labour Code, with exemption from the obligations laid down in Articles 299 and 300 of the same Code.

Proof of the business crisis referred to is verified at the employer’s request by the competent services, namely the Social Security Institute (Instituto da Segurança Social, I.P.).

1. Employment and vocational training support for dependent and self-employed workers, granted by the IEFP, namely:
   1. Extraordinary financial incentive for maintaining jobs, intended to support the payment of employers’ wage obligations affected by damage caused by storm Kristin;
   2. Extraordinary financial incentive for self-employed workers;

• Priority access to active employment measures;

1. Extraordinary Qualification and Vocational Training Plan to support workers covered by the above-mentioned measures.

1. Extension of deadlines for fulfilling tax and accounting obligations applicable to taxpayers headquartered in the affected municipalities between January 28 and March 31. These tax obligations must therefore be fulfilled by April 30.

2026. Moratorium on bank loans relating to primary residence housing and to companies and other legal entities located in the area under a state of calamity.
      The moratoriums apply for a period of 90 days, starting on January 28, 2026.

1. Creation of credit lines for individuals and companies affected by the damage caused by Storm Kristin, to be established under the Banco Português de Fomento, namely:

1. Treasury credit line amounting to 500 million euros, with a maturity of 5 years and a grace period of 12 months.
2. Investment credit line for recovery and reconstruction amounting to 1.000 million euros, with a maturity of 10 years and a grace period of 36 months.

The full Press Release from the Council of Ministers may be consulted here: https://www.portugal.gov.pt/pt/gc25/governo/comunicado-do-conselho-de-ministros?i=709.