Legal Regime of Mandatory Social Protection of Self-Employed Workers in Angola
On May 2, 2022, Presidential Decree no. 97/22 was published in Angola, which aims to regulate the Legal Regime of Mandatory Social Protection for Self-Employed Workers, thus revoking Decree no. 42/08 of July 3, on the Regime of Self-Employed Workers.
This decree-law reiterates matters already provided for in the revoked decree-law, however, it introduces some changes that aim to broaden the scope of its application, namely:
- Requirement for Self-Employed Workers to register and declare their activity with the Managing Entity of Mandatory Social Protection (hereinafter “EGPSO”);
- The calculation of the amount of the contributions is based on the monthly remuneration declared at the moment of the registration, expressed in number of national minimum wages up to a limit of 35. However, the declared value can be modified at any moment;
- As for the contribution rate, it is 8% in the mandatory benefit modality and 11% in the extended benefit modality;
- The registration with the EGPSO was also regulated for SEW’s engaged in economic activities that generate low income, citing, by way of example, street traders, taxi drivers, motorcycle taxi drivers, farmers, fishermen, and mechanics;
- For registration purposes, contrary to the previous diploma, it is now sufficient to present identification documents, namely, the Identity Card or Passport, in the case of national or foreign self-employed workers, respectively. In the case of dependents, copies of the respective identification documents must also be submitted;
- There is currently a provisional registration regime for SEW’s, which must occur when they have no identification document or present a different one. The situation must be regularized within a maximum period of 12 months, counting from the registration date;
- There is also a reduction in the number of eventualities that must be covered by the SEW Regime, from three – Disability, Old Age and Death – to two – Old Age and Death, excluding Protection in the case of disability, in detriment of what was established in the previous diploma;
- The grace period for the non-payment of contributions was shortened from 18 months – interpolated or consecutive – to 12 consecutive months, which, strictly speaking, means that after one year without the payment of contributions, the right to receive any benefit is suspended. If the situation is, in the meantime, regularized, including the payment of interest on arrears, the right to such benefits is reinstated;
- A correction was also made to the previous diploma, namely in article 9.1 which stated that “the monthly remuneration declared should be expressed in number of national minimum wages up to a limit of 35%”. It is now stated that the limit is 35 minimum wages;
- SEW’s engaged in economic activities that generate low income must declare an income between 1 and 3 minimum wages, with reference to the agricultural sector, and may choose to enroll in the contribution and benefit regime specially created to receive them;
- In this special regime, the contribution rate is established at 4% of the amount of remuneration declared to the EGPSO, including protection in the event of old age and death;
- It should also be noted that the present diploma presents a period of 12 months for the PCTs that are already exercising their activity to regularize their situation – registration and contribution – at the EGPSO, being certain that at the end of the indicated period they will be obliged to pay interest and fines.