Contributions toward social security are levied on employees, members of statutory bodies and self employed professionals / entrepreneurs according to the table below.
Any manager of a company in Madeira, residing or not in Portugal, is obliged to register with the local Social Security as well as contribute to the Portuguese Social Security scheme through 34,75% (23,75% + 11%) of the respective salary, subject to a minimum contribution equal to the contribution corresponding to the minimum wage in Madeira. Managers that are not remunerated and prove that they are registered with and contributing to another compulsory social security system are not required to register and contribute to the same end in regard to the Portuguese system. Exemption is obtained in such cases through the submittal of a certificate from the social security office of the manager’s country of residence declaring that the same contributes to the respective compulsory social security scheme (form E 101).
|Members of Statutory Bodies (1)||23,75%||11%|
|Self-employed persons (2)||5% (2)||29,6|
|Young persons employed for the first time||Waivered in the first three years.||11%|
(1) Tax Base – Lower threshold: set by the government, this is known as the “IAS” (Indexante dos Apoios Sociais); Upper threshold: 12 times the IAS rate.
(2) The 5% contribution to be paid by the employer will only be due when, in the applicable civil year, the employer benefits from at least 80% of a given freelance worker’s services, not including freelance workers who are already covered under a foreign social security system.
IAS rate = € 428,90