January is a contribution month of the Social Security Fund (FSS).  The FSS reminds employers that they must fulfill their social security obligations on time, which include employer registration, enrollment of employees who have never been enrolled in the FSS as beneficiaries and payment of obligatory system contributions for employees in the contribution month; otherwise the employers concerned may be liable to a financial penalty. 

The contribution months of the FSS are January, April, July and October of each year.  Under the law, to comply with contribution obligation, employers who establish labour relations with others for the first time must visit the FSS offices to complete employer registration in the contribution month that immediately follows the commencement of labour relations.  If the new hire has never been enrolled in the social security system as beneficiary, his/her employer must also enroll him/her at the same time.  Even though it is not necessary for the employer to make contributions for the long-term employee who works less than 15 days in the start month of employment, he/she is still required to report this new hire to the FSS and enroll him/her in the social security system.  The following is an example:

Company A started business in December last year and hired, on December 19^th, a new employee A who has never been enrolled in the social security system as beneficiary.  Since employee A worked less than 15 days in the start month of employment, the employer is not required to pay contributions for employee A but is still required to complete employer registration and enroll employee A as beneficiary in the contribution month that immediately follows the hiring (i.e. in this month).

Furthermore, the payment periods for the contributions of long-term employees and casual workers are different.  Contributions of long-term employees are paid quarterly in the contribution month that immediately follows the hiring and contributions of casual workers are paid in the month that follows their work month (The amount of contributions is halved for casual workers who work less than 15 days in the month).  If a causal worker has never been enrolled in the social security system as beneficiary, his/her employer should also enroll the casual worker in the month that follows the work month.  The following is a common example: 

Company B hired, in November last year, a casual worker B who has never been enrolled in the social security system as beneficiary.  Since the contributions of causal workers are paid in the month that follows the work month, company B should enroll casual worker B and pay contributions for him/her in December last year.  However, if company B goes through the above formalities quarterly (i.e. in this month), it will be considered as late payment and the employer may be liable to a financial penalty.

The FSS reminds employers of new business that after they report their newly started business to the Financial Services Bureau and submit Salaries Tax－Group I, Registration Form (M/2) of the new hires, they are still required to visit the FSS office to complete employer registration and employee enrollment.  Violators are liable to a financial penalty of 200 to 1,000 patacas for each employee affected by their infractions. 

For late payment of contributions, the default contributions must be rectified within 60 days after the statutory payment period, with late payment interest of 3% per month on the amount of overdue contributions.  Where a fraction of a month shall be counted as a full month and the minimum charge is 50 patacas.  However, if the default contribution is not rectified after 60 days, a minimum financial penalty of 500 patacas up to half of the overdue contributions will be charged on top of the late payment interest. 

For more information about the social security system, members of the public may call 2853 2850, or visit the FSS website at www.fss.gov.mo/en/social/social-guide.