Decree Law No. 137/2010
- Issuer: Ministry of Finance and Public Administration
- Diploma Type: Decree Law
- Number: 137/2010
- Pages: 5940 - 5943
Summary in plain english
What is it?
This decree-law introduces a set of measures intended to reduce the State’s expenses.
These measures, which will add to the ones from the Stability and Growth Program (SGP) for 2010-2013 and from the Central Government Budget for 2011, aim to reduce the difference between the money the State receives and the money it spends.
What will change?
Expenses and transport allowances
Workers in public office have the right to receive a daily subsistence allowance for expenses and a transport allowance when they work away from home in Portugal or abroad.
The daily subsistence allowance will be reduced by 15 to 20% and the transport allowance will be reduced by 10%.
Additional work and night work
By 1 January 2011, the rules for additional work and night work will be applied to all workers in public office with a contract with:
- Central, regional or local government
- Any of the support services of the President, the Assembly of the Republic, the Public Prosecutor’s Office and the courts.
Accumulating pensions with public salaries
Pensioners and off-duty military reservists can only be paid to work in public office if they have permission from the government (usually, valid for one year) or if there is a special law which allows it.
Disabled pensioners or those that have been forced to retire (compulsory retirement) will never be able to work in public office.
Pensioners who are being paid to work in public office cannot accumulate their pension with their salary. If they choose to receive a salary, they have 10 days, from the day they start working, to ask Caixa Geral de Aposentações (CGA), the Portuguese civil servants retirement and survivors’ pension fund, to stop paying their pension while they are working in the public office.
To ensure there are enough doctors in the National Health Service, retired doctors may accumulate their pension with a third of their basic salary or their basic salary with a third of their pension.
Deductions for CGA
Civil servants’ contributions for CGA will rise by one percentage point. In other words, civil servants will now deduct 8% of their salaries for their pensions and 3% for survivor pensions.
What are its benefits?
This decree-law intends to:
- balance public accounts, reducing the difference between the money the State receives and the money it spends.
- ensure there are enough resources to continue to finance social benefits schemes.
When does it come into effect?
This decree-law comes into effect the day after being published.
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