CIP – The Portuguese Business Confederation proposed on Tuesday to the government a “Social Pact” with 30 measures, including voluntary payments by companies for the 15th month to workers exempt from contributions and taxes.
The CIP proposals that make up the Social Pact, a document to which Lusa had access, are based on three axes: economic growth, workers’ incomes and administrative simplification.
In the area of income, CIP proposes to “create a 15th month tax neutrality”, that is, “a voluntary payment by companies of the 15th month up to the limit of the basic salary earned by an employee, without the impact of personal income tax (PIT) and exclusion from the funded base in parts of social security,” can be read in the document.
The Confederation, chaired by Armindo Monteiro, also proposes an extraordinary measure to ensure liquidity for families, which involves testing in 2024 and 2025 a wage increase of 14.75% with a temporary reduction in the Unified Social Tax (TSN).
According to the proposal, this salary increase “would result in a 4.75% increase in liquidity, with the remaining 10% included in the individual pension plan.”
CIP advocates for the creation of supplemental retirement vehicles in companies through pension plans with TSU and IRS exempt benefits based on this emergency liquidity measure for families, employer contributions, dividends paid to employees, overtime, or purchased vacation hours. as compensatory leave or annual leave exceeding the minimum period.
In turn, to help retain talent, CIP proposes to exempt from the IRS the first 100 thousand euros earned by a young person under 35 years of age.
In terms of economic growth, the confederation proposes tax incentives for competitiveness and employment, a special export support regime, as well as the gradual creation of a flat IRC rate of 17% until 2025, as already exists for small businesses. , among other measures.
The CIP proposals for administrative simplification, in turn, involve the creation of “simplex companies” to facilitate relations between the state and companies, especially with the tax authority.
The Confederation also advocates for simplification of legislation, “ensuring companies have stability and predictability of standards, and creating a common fee regime”, noting that there are currently around 4,300 fees.
The “Social Pact” was presented on Tuesday in Lisbon by the CIP to several members of the government and the UGT.
“What have we been doing all morning? [hoje] have begun to develop very specific measures, and if these measures are implemented, there is the possibility of increasing wages, perhaps to a level higher than specified in the income agreement. [4,8% em 2024]”CIP President Armindo Monteiro told reporters after a meeting with the ministers of labor, finance and economy, which was also attended by representatives of the UGT trade union center.
At today’s meeting, the CIP presented the so-called “Social Pact” – a document with proposals for the country in various areas (taxes, income, housing, social security, health care), including the state budget for 2024.
According to the “boss of bosses”, to increase wages it is necessary to “create wealth, since companies do not have endless opportunities”, so “Portugal will have to choose whether it wants to put more money in the pockets of the State or in the pockets of the Portuguese.”
“Our measures are aimed at putting more money in the pockets of the Portuguese,” he said after the meeting in Lisbon.
Author: Lusa
Source: CM Jornal
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