Accidents at work and occupational diseases. Ombudsperson calls for updating of the way compensation is calculated

The Ombudsperson, Maria Lúcia Amaral, has recommended that the government urgently update the calculation of capital compensation awarded to workers who have suffered an accident at work or occupational disease, so that it reflects both current average life expectancy and interest rates.
These two indicators, which are part of determining the amount to be paid, are far out of date, creating disadvantageous situations for workers and undue benefits for payers.

The lack of updating provided for a long time ago in the Law on Accidents at Work (Law no. 98/2009, of 4 September) has generated several complaints. Currently, the calculation of capital compensation is still based on Ordinance no. 11/2000 of 13 January, legislation that is more than 24 years old and uses demographic data from 1988-1990. This data assumes, for example, an average life expectancy at the age of 65 of 13.07 years – around six years lower than the current average.

In addition, an interest rate of 5.25% is assumed, which is much higher than what is currently being charged, resulting in estimated monetisation gains that don’t correspond to reality. What’s more, in several situations, beneficiaries don’t even have the option of refusing this conversion of their pension into a lump sum, as it is legally obligatory.

Recalling that this situation results from a legislative omission already signalled to Parliament, the Ombudsperson reinforces the need to adopt current and adjusted criteria, subject to continuous updating, in order to guarantee respect for the right of workers or their families, in the event of death, to fair compensation.

To read the full Recommendation click here [in Portuguese only].