Both permanent and fixed-term contracts are covered, and the job must be located on mainland Portugal.

"This ordinance creates an exceptional measure to encourage the return to work of unemployed young people (IRT Jovem), with the aim of stimulating the active search for employment and financially compensating young people who sign employment contracts before the end of the unemployment insurance period," states the decree published today.

This support is intended for young people under 30 who are already registered with the Institute of Employment and Vocational Training (IEFP) as unemployed and are receiving unemployment benefits.

If they enter into a new employment contract, they will be entitled, under this measure, to financial support corresponding to 25% (if the employment contract is fixed-term) or 35% of the benefit they are receiving (if the employment contract is permanent).

This financial support is limited to the remaining period of the unemployment insurance benefit or the duration of the current employment contract, if this is shorter than the remaining period.

The ordinance details that only full-time employment contracts signed as of this Thursday, October 9th, and lasting six months or more are eligible.

It is also stipulated that employment contracts must be signed with entities registered in mainland Portugal, and the job must be located on the mainland.

On the other hand, the decree published by the Government makes it clear that employment contracts signed with the young beneficiary's previous employer are not eligible.

Luís Montenegro's government also establishes that young people can only benefit from this support once. It emphasizes that, in the event of a suspension of the employment contract (for example, in a layoff situation), the support is maintained, as the contractual relationship continues.

The IEFP will be responsible for implementing this new incentive, which will be responsible for defining the application period and preparing a support guide for interested young people (by October 18th).

According to the decree, young people must submit their applications within a maximum period of 30 days from the start date of their employment contract, and the IEFP will then have ten business days to make a decision on the application.

"Within ten business days of receiving notification of the approval decision, recipients must submit to the IEFP the acceptance form of the approval decision, indicating their IBAN," the legislation adds.

Regarding payment, the Government explains that there will be three major milestones: 30% of the total approved amount, within 20 business days of submission of the acceptance form and other supporting documentation; 30% of the total approved amount, after half of the time period has elapsed; and 40% within 20 business days of the end of the time period.

This exceptional measure to encourage young people to return to work will be in effect until June 30, 2026. It will then be evaluated by the Social Consultation.