Social Security measures to encourage hiring and voluntary settlement of debts

On the 17th of January 2022, Presidential Decree No. 12/22, of 17 January 2022, was published in the Official Gazette, establishing the legal framework of the Social Security measures to encourage the hiring of unemployed, young or disabled citizens, and to encourage the voluntary settlement of social security debts, which entered into force on that same day.

This legal framework covers all employers, natural or legal persons, public or private, who enter into employment contracts with unemployed, young, or disabled citizens.

With regard to the hiring incentive measures contained in the Presidential Decree, the following should be noted:

• Unemployed: benefit of 50% of the contribution rate, in force, for a period of 12 months, under the responsibility of the employer who hires, through a written work contract, unemployed people;

• Young people:

i. Exemption from the employer’s contribution tax during the first 6 months after the signing of the employment contract;
ii. Reduction in the employer’s contribution rate, in the following 6 months of the said contract.

• Disabled citizens: exemption from the contribution tax under the responsibility of the employer, for a period of 12 months, after the date of the conclusion of the employment contract.

The Employers who do not maintain the employment contracts, or the same number of unemployed, young, or disabled employees, during the period of 3 years, are obliged to reimburse to the National Institute of Social Security the amount of the contributions, whose exemption or reduction they have benefited from.

Regarding to the regularisation of debts owed to Social Security, the National Institute of Social Security may exempt the debtor from interest if, during the period of debt regularisation, the debtor undertakes, by agreement, to maintain, at least, the same number of employees registered with Social Security at the date of the facts.

The measures established in this legal diploma are in force for a period of 36 months from the date of its publication and may be extended for periods to be defined if the economic situation so justifies.

António Vicente Marques – Sociedade de Advogados, RL
Luanda, March 2022

Contributing Advisors