In 2020, 14,278 applications were submitted, an increase of 2,621 from 2019. July and August are the months with the highest number of registration applications, 1,712 and 1,467 respectively.
In 2020, the number of requests to the Wage Guarantee Fund (FGS) to pay overdue wages increased by 22.5% compared to the previous year, and expenditures with salary credits increased by 8.31%.
A report from the Institute of Social Security and Financial Management (IGFSS), which Lusa has access to, stated: “In 2020, 14,278 applications were submitted to the FGS service department to pay for credits arising from employment contracts, breaches or termination of contracts. and Compared to 2019 (11,657 applications were submitted), the absolute change exceeded 2,621.
The document indicates that on average 1,189 applications are submitted every month.
FGS applies to employees, and its purpose is to ensure that the employer’s debt to the worker is repaid to the employer when the employer is in bankruptcy or financial difficulties.
July and August are the months with the highest number of requests, 1,712 and 1,467 respectively.
The Porto Regional Center is the most requested area, with 5,291, accounting for 37.06% of the total number of requests; followed by the Braga Regional Center with 3,181 requests (22.8% of the total number of requests), and the Lisbon Center with 1,766 (accounting for the total) 12.37%).
Taking into account the waiting process in 2019, the number of applications processed by FGS in 2020 is 17,352.
IGFSS pointed out that in order to meet all legal requirements, a total of 1,793 applications were approved, of which 13,263 applications were only partially approved, “mainly based on lowering the legal limit, and because there are overdue credits beyond the benchmark period.”
The global limit guaranteed by FGS is equal to 18 times the national minimum wage.
Regarding the 2296 requests that were rejected, IGFSS explained that in most cases, the decision was due to the fact that “the expiration date has been exceeded” or that “all the requested credits expired before the base date”. .
The total number of cases carried forward by 2021 is 2,201.
The cost of paying salary credits increased by 8.31% compared to 2019, reaching 75,848,547.04 euros, corresponding to 13,979 applications.
The IGFSS emphasized that from 2016 to 2020, “the number of applications and the amount of payments have shown a downward trend, while there has been an increase in 2020.”
The average payment amount per application is 5,426 euros, but the amount paid to the worker will be deducted from social security payments, IRS withholding tax and any applicable taxes.