Doubt about whether it is possible to receive the old age pension and, at the same time, staying in the asset is common among those who reach the end of their contributory career. Portuguese law allows to accumulate work and reform, but there are rules that determine how income is calculated and what situations are the work contract changes. According to the Portuguese Association for Consumer Protection (DECO), the pension can be requested from the legal age in force, but it is not mandatory to immediately abandon professional life.
According to the same source, the worker who reaches the age of renovation can continue to perform duties in the company, without the employer opposing himself. In doing so, it maintains all rights acquired, from day-to-vacation daytime daytime, and also benefits bonuses in the future pension.
How accumulation works
Write the publication that, for each additional month of discounts, the pension is increased by 0.33% and 1%, depending on the contributory career of the worker. However, these bonuses only apply until 70. After this age, the contract without a term expires 30 days after the anniversary and automatically becomes a contract within six months.
It refers to the same source that, at this stage, if the employer intends to finish the bond, simply communicate the decision 60 days in advance. There is no compensation, beyond the proportional vacation and subsidies.
Work after reform
Adds Deco that, once reformed by old age, it is possible to work for the old company as an independent worker or other entities, without limitations. However, in the case of pre-reform, for three years it is not allowed to perform any activity, whether paid or not, inside or outside the business group of origin.
Explains the same source that, in the regime of absolute disability, it is not possible to resume professional functions, even after the legal age of reform. The possibility of accumulating pension and salary is therefore reserved only for old age reform situations.
Effects on Pension and IRS
According to the publication, those who continue to work after the reform contributes 7.5% of the gross salary for social security. The resulting increase is automatically incorporated into the pension amount, being paid the following year, with retroactive January 1.
In addition to the social component, there are tax implications. According to the submission of the IRS declaration is mandatory when the sum of the pension and wages exceeds 8,500 euros annually. Even those who are dismissed can in some cases benefit from the delivery of the document.
Portuguese legislation thus opens the possibility of prolonging active life after reform, allowing to accumulate work and pension income, provided that the rules provided for each situation are respected.
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