Flash
December 30, 2016
The option for the payment by monthly
twelfths of the Christmas and vacation
allowance for 2017
The 2017 State Budget Law has foreseen again the payment by means of
monthly twelfths of Christmas and vacation allowance of private sector’
employees.
The private sector employees will receive 50% of the vacation allowance until the
beginning of the holiday period, and the Christmas allowance until December
15th, being the remaining 50% of each allowance paid by means of monthly
twelfths during the year. In case the employee enjoys interspersed holiday
periods, the first 50% of the vacation allowance shall be paid proportionally every
holiday period.
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If the employee does not want the payment to
established
the
payment
and
vacation
in
advance
be made by means of monthly twelfths, he must
Christmas
expressly notify the employer of his option until
agreement earlier than said date.
allowances
of
the
by
an
January 5th 2017.
This monthly twelfths’ allowance payment regime
will only apply to fixed-term and temporary
Mariana Saúde | [email protected]
employment agreements in case of written
agreement between the employer and the
employee.
It must be noted that monthly twelfths’ payments
of Christmas and vacation allowances will be
subject to an autonomous withholding tax, which
means it can not be added to the remuneration
paid to the employee every month.
Finally, this regime does not apply to allowances
concerning vacations accrued before January
5th 2017 and not yet paid, nor even when it was
This Flash was written by:
Mariana Saúde | [email protected]
Teixeira de Freitas, Rodrigues & Associados, SP RL
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reproduced. All information provided in this Newsletter and the opinions herein are a general overview of the subjects, and should not replace the legal advice for the
resolution of any specific cases. If you wish to obtain further clarification on these or other legal matters, please contact Ana Sofia Catarino Ana Sofia Catarino
([email protected]).
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