By means of Decree-Law No. 1/2025 of 7 January 2025, the Government of São Tomé and Príncipe has approved the third amendment to Decree-Law No. 19/2022 of 15 July 2022, which enacted the Compulsory Social Protection Regulations.

Among the key amendments is the introduction of a new contribution rate of 12%, which is shared between the employer and the employee in the proportions of 7% and 5%, respectively.
Accordingly, the amount payable is calculated as 12% of the employee’s gross salary, subject to social security contributions.

Under the revised regulations, the following new measures have been introduced:

• A total exemption from the employer’s contribution for up to one year may be granted by the National Social Security Institute ("Instituto Nacional de Segurança Social" – INSS) when an employer permanently hires long-term unemployed individuals who are at the age threshold required to complete the minimum career period for an old-age pension, or young people up to 25 years old seeking their first job.
• With INSS authorization, churches, private social solidarity institutions, companies with an annual turnover of up to 90 UCSS (equivalent to STN 108,000.00), the domestic sector, and other non-profit private entities may continue to benefit from the previous 10% contribution rate, where 4% is paid by employees and 6% by employers.

The new contribution rate came into effect on 1 January 2025, with payments due in February 2025, retroactive to January.

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