Government wants to stop criminalizing contracts in domestic service – but it does not explain why

The government wants to end the criminalization of the omission of social security workers hiring, which includes the domestic service sector, but does not explain the advantages of the measure, nor the impact on tax and contributory dropout.

The draft reform of the labor legislation that the government of Luís Montenegro presented to social partners in July, known as “work XXI”, proposes end with the obligation to communicate the admission of workers.

At this time, if employers do not declare a hiring within six months following the end of the period provided for by law to proceed to this communication – as a rule, within 15 days prior to the beginning of the activity -.

Questioned by Lusa, the Office of the Minister of Labor, Solidarity and Social Security Maria do Rosário Palma Ramalho did not clarify the reason whereby it considers positive to stop criminalizing the non -declaration of domestic work, taking into account the level of Fiscal and Contributory Informality which is historically associated with him.

Also did not respond when asked about the impact the end of the penalty in tax and contributory dropout.

The draft law of labor reform does not include alternative measures to encourage employers to declare the work of the domestic service. Asked if any measure has been considered in this regard and because it was not included in the draft, the minister’s office said nothing.

What are the risks of decriminalization?

Lawyers in the area of labor law contacted by Lusa consider that decriminalization can lead to a potential aggravation of tax and contributory dropout in a sector already marked by informality.

MADALENA CALDEIRALawyer of the Gómez-Acacebo & Pombo Society in Lisbon, states that “the absence of a criminal consequence can be interpreted as a weakening of the state’s protection over these obligations, with the consequent risk of accentuating the vulnerability and depletion of workers Of this sector, since, not being made their communication, they will not be possible to make the contributions due to social security ”.

For your side, RITA BRADE DE ALMEIDAlawyer of Antas da Cunha Ecija, notes that the Criminalization has a preventive role“In a psychological perspective”.

With the end of criminalization, he believes, some employers will see in the change “a flexibility of contributory obligations that on SI unveil, thus enhancing omissive behaviorsparticularly in a sector where inspection is still less incisive. ”

The lawyer also anticipates a “significant increase in scenarios Fiscal and Contributory Evasion“If the end of criminalization is not accompanied by complementary measures, such as” the reinforcement of the supervisory activity, the implementation of awareness campaigns with employers and the eventual simplification of declarative procedures. “

The “White Book Digno Home Work”, published in April 2024 by the Ordinance, Surveillance, Cleaning, Domestic and Diverse (Stad) Union, identifies the informality and the precarious work as central characteristics of this activity.

Increasingly devalued discounts

Portugal has 220.4 thousand workers of the domestic service recorded in social security, but Only 23% make social contributions.

According to data released to Lusa by the Institute of Social Security (ISS), of professionals officially registered with the active qualification of domestic service at the end of last year, Only 51.5 thousand had social security contributions.

According to the white book Digno Home Work, “between 1990 and 2022, the number of people with domestic workers with social security declarations dropped 69%” and, in the same period, “the number of domestic service employers increased by 42%from 334,000 to 475,000”.

“Domestic workers have been given a increasingly reduced importance to the payment of discounts -On your own-for Social Security, assuming this responsibility the employers, ”he says in the study.

It is mandatory for employers to communicate the admission of a worker to social security and then pay social contributions.

Communication should be done up to 15 days before the contract start date (today an employer can do so online, through the Direct Social Security website). Under specific circumstances, this step can be taken within 24 hours of the beginning of the activity.

When people receive at the hour, the value of the declared salary that serves as the basis of the Calculation of contributions is 3.01 euros per hour (even if the actual maturity is higher, for example, eight, nine or ten euros per hour).

The employer has to declare at least 30 hours per montheven if the cleaning worker works less hours at the employer’s house.

The employer pays 18.9%and the worker 9.4%, which gives a contributory rate of 28.3%.

Not discounting has implications for the value of the old age pension and access to social benefitssuch as illness allowance, unemployment allowance, parental subsidies or funeral expenses reimbursement.

May also have an indirect impact on remuneration, since registration in social security, regardless of the contract regime entered into, obliges employers to pay the holiday allowance (22 business days of vacation per year) and the Christmas subsidyequivalent to a monthly salary.

Average salary is less than 360 euros

O Average salary of domestic service workers declared to social security and, On average, 358 eurosfar below the national minimum wage, according to official data.

However, this value concerns only the universe of people recorded in social security as being homeless professionals.