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Companies with young people from 18 to 30 years old exempt from paying Social Security for one year

The Government will exempt, for one year, the payment of Social Security to “companies or economic activities that generate low income, where workers earn up to 20 national minimum wages”.

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According to information provided by Anselmo Monteiro, chairman of the Board of Directors of the National Institute of Social Security (INSS), in order for companies to be exempt, "they must have active workers aged between 18 and 30".

Cited in a note made available on the Government's Facebook, the official refers that the measure appears in the framework of the Presidential Decree 295/20, of 19 November, which deals with the Legal Regime of Social Protection for Others and Low Income Generating Activities ".

Anselmo Monteiro informed that the diploma also presents itself as an incentive to access Social Protection, through the contribution rate, contrary to what is currently available in the Third Party Regime, "in which the insured person pays three percent and the taxpayer (the company) eight percent".

The official classified the measure as "more flexible", for "leaving only 1.5 percent of responsibility to the worker and four percent to the employer".

The document is part of the set of measures to support the resumption of economic activity. In this sense, the official admitted that these measures will have an effect on cooperatives in the agricultural sector, "because they are one of the bases for the country's development, hence they are among the main priorities of the authorities."

This sector encompasses a considerable part of the society that develops agricultural work, but that is not included in the Mandatory Social Protection System, being necessary "to change this framework", he considered.

However, he explained that the scope of the document goes further, clarifying that people without documents can also register in the system, having one year to deal with their documentation.

According to the statement, in the capital, where there are 82 percent of taxpayers registered with the INSS, it was found that in informal markets most of them are unaware of the existence and importance of Social Security.

"This is a big challenge for us. Therefore, we have to get closer to citizens and businesses," he said, adding that they have been working with the General Tax Administration to change that landscape.

In addition, within the scope of the Social Security payment exemption process, "it is also planned to cover cooperatives or organized groups of taxi drivers, motorcycle taxi drivers (sectors that employ over a million people) and other entities or economic operators", he said, indicating that work is in progress with the Technical Team of the Economic Commission, for the approval and integration of these activities in this diploma.

He also considered that with this decree, which is waiting to be published in the Diário da República, the Government is opening up opportunities for young people enrolled in Social Security, but who, because of the pandemic or other crises, lost their job and consequently the ability to cash for the INSS.

In addition, the diploma also allows employers to review and negotiate the debt with the INSS, "in periods to be agreed between the parties, and may even withdraw the interest that would be applied to them".

"Another objective of this diploma is the creation of a culture that contributes to Social Security, for the well-being in the future of those who work in the informal sector", the statement said.

To that end, a set of "promotional activities in the informal sector throughout the country are planned, in spaces such as the KM-30, Kicolo and Kwanzas market, in Luanda, given the concentration of people in these places, where some activities have already taken place of this nature".

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