The General Treasury of Social Security has reconsidered its position and now requires contributions on amounts paid for lack of notice in objective dismissals, equating them to salary payments.
The General Treasury of Social Security (TGSS) has shifted its interpretation regarding objective dismissals. From now on, the amounts that companies pay to workers for not respecting the notice period in an objective contract termination must be contributed as a salary concept.
This change, recorded in the official bulletin of the TGSS on July 14, 2026, represents an increase in the contribution base for the worker and, therefore, an increase in revenue for the public system. Until now, the General Subdirectorate of Organisation and Appeals considered these amounts to be compensatory and exempt from contributions.
What has changed in the notice period contribution?
The TGSS has reconsidered its previous stance. As explained in its bulletin, Article 53 of the Workers' Statute (ET) clearly distinguishes two concepts in the objective termination of the contract: the compensation of 20 days per year of service and the granting of a notice period. The lack of this notice generates an economic compensation that, for Social Security, has a nature closer to salary than to compensation.
“It is thus clearly distinguished what is compensation and what is a differentiated concept of notice, whose nature is not defined, but which in any case would have a character closer to salary,” points out the TGSS in its bulletin. This separation means that the amount received for lack of notice must be contributed in the eyes of the TGSS.
Specifically, it must now be considered a complementary payment to the salary. “Amounts paid for lack of notice must be contributed in the corresponding complementary settlements, considering the termination as the moment of its accrual,” states the bulletin from the Ministry of Inclusion, Social Security and Migration.
Practical impact for companies and workers
This change in criteria has direct consequences for both companies and workers affected by an objective dismissal. For the worker, the amount received for lack of notice will be integrated into their contribution base for the month of termination, which may slightly increase their contributions and, therefore, their future benefits (such as unemployment or pension). However, it also means that this amount will be subject to income tax withholdings and social contributions, reducing the net amount received.
For the company, the obligation to contribute for this concept implies a higher labour cost. It will need to include the amount in the complementary settlements of Social Security, which requires adjustments in the processes for calculating severance payments and in the submission of social insurance. Companies that have carried out objective dismissals without notice in recent months could face regularisations if the TGSS reviews their settlements.
This change adds to other recent measures by Social Security to increase revenue, such as the reduction of up to 17% in the pension of those who retire early with more than 41 years of contributions. The TGSS thus seeks to “disincentivise” early retirement and, in this case, clarify the salary nature of certain compensations.
Labour experts recommend that companies review their procedures for objective dismissals and, in case of doubt, consult with advisors to avoid penalties. For workers, it is important to know that compensation for lack of notice is no longer exempt from contributions, which affects the calculation of severance payments.
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