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Portugal
| Total population (m.): | 10.7 |
| GDP per capita (USD): | 22765 |
Old Age, Disability and Survivors
Regulatory Framework
First law: 1935 (1919 legislation not implemented).
Current laws: 1980 (Decree-Law No. 160/80, noncontributory scheme), 2007 (Decree-Law No. 187, on the general scheme), 2007 (N° 4 of 16 January, on Social Security), and 2009 (Decree-Law N°90 of 31 August, invalidity in case of incertain diseases).
Type of program: Social insurance and social assistance system.
Current laws: 1980 (Decree-Law No. 160/80, noncontributory scheme), 2007 (Decree-Law No. 187, on the general scheme), 2007 (N° 4 of 16 January, on Social Security), and 2009 (Decree-Law N°90 of 31 August, invalidity in case of incertain diseases).
Type of program: Social insurance and social assistance system.
Coverage
Social insurance: Employed persons and self-employed persons with gross annual income greater than six times the social benefit rate.
Voluntary coverage for self-employed persons with gross annual income up to six times the value of the social benefit rate and for persons not covered by the contributory program.
The social benefit rate is €419.22 a month.
Special systems for miners, longshoremen, fishermen, merchant seamen, civil aviation workers, air traffic controllers, and dancers. (Special systems are being gradually unified with the general system.)
Social assistance: Persons not covered under a contributory program.
Voluntary coverage for self-employed persons with gross annual income up to six times the value of the social benefit rate and for persons not covered by the contributory program.
The social benefit rate is €419.22 a month.
Special systems for miners, longshoremen, fishermen, merchant seamen, civil aviation workers, air traffic controllers, and dancers. (Special systems are being gradually unified with the general system.)
Social assistance: Persons not covered under a contributory program.
Source of funds
Insured person: 11% of gross earnings.
Of the total 34.75% of gross earnings contributed by the insured person and employer, 16.01% finances old-age benefits, 3.42% finances disability benefits, and 3.67% finances survivor benefits.
The insured's contributions also finance sickness and maternity, occupational disease, unemployment, and family benefits.
Self-employed person: 25.4% of reference income for mandatory coverage or 32% for voluntary coverage.
The reference income for contribution calculation purposes is chosen by the self-employed person from a range of 1.5 to 12 times the social benefit rate.
The social benefit rate is €419.22 a month.
The self-employed person's contributions also finance sickness and maternity, occupational disease, and family benefits.
Employer: 23.75% of payroll.
Of the total 34.75% of payroll contributed by the insured person and employer, 16.01% finances old-age benefits, 3.42% finances disability benefits, 3.67% finances survivor benefits.
The employer's contributions also finance sickness and maternity, occupational disease, unemployment, and family benefits.
Government: Subsidizes the social pension.
Of the total 34.75% of gross earnings contributed by the insured person and employer, 16.01% finances old-age benefits, 3.42% finances disability benefits, and 3.67% finances survivor benefits.
The insured's contributions also finance sickness and maternity, occupational disease, unemployment, and family benefits.
Self-employed person: 25.4% of reference income for mandatory coverage or 32% for voluntary coverage.
The reference income for contribution calculation purposes is chosen by the self-employed person from a range of 1.5 to 12 times the social benefit rate.
The social benefit rate is €419.22 a month.
The self-employed person's contributions also finance sickness and maternity, occupational disease, and family benefits.
Employer: 23.75% of payroll.
Of the total 34.75% of payroll contributed by the insured person and employer, 16.01% finances old-age benefits, 3.42% finances disability benefits, 3.67% finances survivor benefits.
The employer's contributions also finance sickness and maternity, occupational disease, unemployment, and family benefits.
Government: Subsidizes the social pension.
Qualifying conditions
Old-age pension: Age 65 with at least 15 calendar years of contributions.
A total of 120 days of registered pay are needed for a qualifying calendar year. Calendar years with less than 120 days of registered pay may be aggregated to complete a single qualifying calendar year. Coverage periods completed under other domestic or foreign social security programs may be taken into account provided that the insured has at least 1 calendar year of registered earnings under the general system.
The pension is paid to unemployed persons at age 62 if they are no longer entitled to receive unemployment benefits; at age 57 (with at least 22 years of contributions) with a reduced pension.
Early pension: From age 55 if the insured has at least 30 years of contributions.
Deferred pension: A deferred pension is possible from age 65. Retirement from covered employment is necessary at age 70.
Social old-age pension (means-tested): Aged 65 or older and with no coverage under any contributory social security program.
Means test: Monthly income must not exceed 30% of the social benefit rate for an unmarried person; 50% for a couple.
The social benefit rate is €419.22 a month.
Solidarity extra supplement: Paid to supplement the social pension.
Long-term care supplement: Paid for a first-degree dependence (the insured requires the attendance of another person to perform ordinary daily activities) or a second-degree dependence (the insured is bedridden or suffers from a severe mental illness).
Solidarity supplement for the elderly (means-tested): Paid to pensioners aged 65 or older, to recipients of the lifelong allowance (see Family Allowances) and to elderly persons not eligible for the social pension. The insured must have resided in Portugal for at least 6 years before claiming for the benefit.
Means test: The beneficiary's annual income must be less than €5,022; €8,788.50 for a couple.
Disability pension: Paid for a total permanent disability with at least 3 years of contributions. Paid for a partial disability (an assessed loss of at least 66.7% of earning capacity) with at least 5 years of contributions. At least 120 days of registered pay are required for a qualifying year.
A special disability pension is paid to persons with certain diseases, such as HIV/AIDS or cancer.
Social disability pension (means-tested): Aged 18 or older, disabled, and with no coverage under any contributory program.
Means test: Monthly income must not exceed 30% of the social benefit rate for an unmarried person; 50% for a couple.
The social benefit rate is €419.22 a month.
Solidarity extra supplement: Paid to supplement the social pension.
Long-term care supplement: Paid for a first-degree dependence (the insured requires the attendance of another person to perform ordinary daily activities) or a second-degree dependence (the insured is bedridden or suffers from a severe mental illness).
Survivor pension: The deceased received or was entitled to receive an old-age pension or a disability pension at the time of death.
Eligible survivors are the deceased's spouse and children younger than age 18 (age 27 if a student, no limit if disabled).
Death grant: Paid for the death of the insured person.
A total of 120 days of registered pay are needed for a qualifying calendar year. Calendar years with less than 120 days of registered pay may be aggregated to complete a single qualifying calendar year. Coverage periods completed under other domestic or foreign social security programs may be taken into account provided that the insured has at least 1 calendar year of registered earnings under the general system.
The pension is paid to unemployed persons at age 62 if they are no longer entitled to receive unemployment benefits; at age 57 (with at least 22 years of contributions) with a reduced pension.
Early pension: From age 55 if the insured has at least 30 years of contributions.
Deferred pension: A deferred pension is possible from age 65. Retirement from covered employment is necessary at age 70.
Social old-age pension (means-tested): Aged 65 or older and with no coverage under any contributory social security program.
Means test: Monthly income must not exceed 30% of the social benefit rate for an unmarried person; 50% for a couple.
The social benefit rate is €419.22 a month.
Solidarity extra supplement: Paid to supplement the social pension.
Long-term care supplement: Paid for a first-degree dependence (the insured requires the attendance of another person to perform ordinary daily activities) or a second-degree dependence (the insured is bedridden or suffers from a severe mental illness).
Solidarity supplement for the elderly (means-tested): Paid to pensioners aged 65 or older, to recipients of the lifelong allowance (see Family Allowances) and to elderly persons not eligible for the social pension. The insured must have resided in Portugal for at least 6 years before claiming for the benefit.
Means test: The beneficiary's annual income must be less than €5,022; €8,788.50 for a couple.
Disability pension: Paid for a total permanent disability with at least 3 years of contributions. Paid for a partial disability (an assessed loss of at least 66.7% of earning capacity) with at least 5 years of contributions. At least 120 days of registered pay are required for a qualifying year.
A special disability pension is paid to persons with certain diseases, such as HIV/AIDS or cancer.
Social disability pension (means-tested): Aged 18 or older, disabled, and with no coverage under any contributory program.
Means test: Monthly income must not exceed 30% of the social benefit rate for an unmarried person; 50% for a couple.
The social benefit rate is €419.22 a month.
Solidarity extra supplement: Paid to supplement the social pension.
Long-term care supplement: Paid for a first-degree dependence (the insured requires the attendance of another person to perform ordinary daily activities) or a second-degree dependence (the insured is bedridden or suffers from a severe mental illness).
Survivor pension: The deceased received or was entitled to receive an old-age pension or a disability pension at the time of death.
Eligible survivors are the deceased's spouse and children younger than age 18 (age 27 if a student, no limit if disabled).
Death grant: Paid for the death of the insured person.
Cash benefits for insured workers (except permanent disability)
Old-age pension: The monthly pension is 2% of the average adjusted lifetime monthly salary for each qualifying calendar year for those with less than 21 qualifying years; 2% to 2.3% according to the insured's reference earnings for those with 21 or more qualifying years, up to 40 years; 3% if the insured suffers from certain diseases.
Reference earnings are calculated as the average monthly earnings for all years of coverage, up to 40 years.
For a transitional period, pensions are calculated according to the former method (2% of average annual earnings for the best 10 calendar years out of the last 15 years multiplied by the total number of qualifying calendar years) or the current method (above). The total pension amount is adjusted according to average life expectancy.
The minimum pension is either 30% of the reference earnings used for pension calculation or a monthly amount fixed according to the length of the insured's career (ranging from €246.36 for a career of up to 15 years to €379.04 for a career of at least 31 years), whichever is greater.
The maximum pension is 92% of the reference earnings used for pension calculation.
Early pension: The pension is reduced by 0.5% for each month the pension is received before age 65. (For each 3-year period of contributions greater than 30 years, 12 months of reductions are waived.)
Deferred pension: The pension is increased for each additional year of contributions between age 65 and 70 (from 0.33% a year with a contribution record of 15 to 24 years to 1% a year with a contribution record greater than 40 years). The pension is further increased by 0.65% for each month of contributions greater than 30 years made before age 65.
Long-term care supplement: €94.77 is paid for a first-degree dependence (the insured requires the attendance of another person to perform ordinary daily activities) or €170.58 for a second-degree dependence (the insured is bedridden or suffers from a severe mental illness).
Dependent spouse's supplement: €36.80 a month is paid to pensioners who first received a pension after December 31, 1993.
The old-age pension can be combined with earnings from gainful activity.
Benefits are payable abroad.
Schedule of payments: Benefits are paid monthly, with additional payments in July and December.
Benefit adjustment: Benefits are adjusted annually according to changes in the GDP growth rate.
Social old-age pension (means-tested): €189.52 a month is paid.
Solidarity extra supplement: €17.54 is paid for persons up to age 69; €35.06 if aged 70 or older.
Long-term care supplement: €85.28 is paid for a first-degree dependence or €161.09 for a second-degree dependence.
Benefits are payable abroad under reciprocal agreement.
Solidarity supplement for the elderly (means-tested): The annual supplement is the difference between the insured's annual income and €5,022 or €8,788.50 for a couple.
Solidarity supplement for the elderly (means-tested): The annual supplement is the difference between the insured's annual income and €5,022 or €8,788.50 for a couple.
Reference earnings are calculated as the average monthly earnings for all years of coverage, up to 40 years.
For a transitional period, pensions are calculated according to the former method (2% of average annual earnings for the best 10 calendar years out of the last 15 years multiplied by the total number of qualifying calendar years) or the current method (above). The total pension amount is adjusted according to average life expectancy.
The minimum pension is either 30% of the reference earnings used for pension calculation or a monthly amount fixed according to the length of the insured's career (ranging from €246.36 for a career of up to 15 years to €379.04 for a career of at least 31 years), whichever is greater.
The maximum pension is 92% of the reference earnings used for pension calculation.
Early pension: The pension is reduced by 0.5% for each month the pension is received before age 65. (For each 3-year period of contributions greater than 30 years, 12 months of reductions are waived.)
Deferred pension: The pension is increased for each additional year of contributions between age 65 and 70 (from 0.33% a year with a contribution record of 15 to 24 years to 1% a year with a contribution record greater than 40 years). The pension is further increased by 0.65% for each month of contributions greater than 30 years made before age 65.
Long-term care supplement: €94.77 is paid for a first-degree dependence (the insured requires the attendance of another person to perform ordinary daily activities) or €170.58 for a second-degree dependence (the insured is bedridden or suffers from a severe mental illness).
Dependent spouse's supplement: €36.80 a month is paid to pensioners who first received a pension after December 31, 1993.
The old-age pension can be combined with earnings from gainful activity.
Benefits are payable abroad.
Schedule of payments: Benefits are paid monthly, with additional payments in July and December.
Benefit adjustment: Benefits are adjusted annually according to changes in the GDP growth rate.
Social old-age pension (means-tested): €189.52 a month is paid.
Solidarity extra supplement: €17.54 is paid for persons up to age 69; €35.06 if aged 70 or older.
Long-term care supplement: €85.28 is paid for a first-degree dependence or €161.09 for a second-degree dependence.
Benefits are payable abroad under reciprocal agreement.
Solidarity supplement for the elderly (means-tested): The annual supplement is the difference between the insured's annual income and €5,022 or €8,788.50 for a couple.
Solidarity supplement for the elderly (means-tested): The annual supplement is the difference between the insured's annual income and €5,022 or €8,788.50 for a couple.
Permanent disability benefits for insured workers
Disability pension: The monthly pension is 2% of the average adjusted lifetime monthly salary for each qualifying calendar year for those with less than 21 qualifying years; 2% to 2.35% of the insured's reference earnings for those with 21 or more qualifying years, up to 40 years; 3% of the insured's reference earnings if suffering from certain diseases.
Reference earnings are calculated as the average monthly earnings for all years of coverage, up to 40 years.
For a transitional period, pensions are calculated according to the former method (2% of average annual earnings for the best 10 calendar years out of the last 15 years multiplied by the total number of qualifying calendar years) or the current method (above).
The minimum pension is either 30% of the reference earnings used for pension calculation or a monthly amount fixed according to the length of the insured's career (ranging from €246.36 for a career of up to 15 years to €379.04 for a career of at least 31 years), whichever is greater.
The maximum pension is 92% of the reference earnings used for pension calculation.
Long-term care supplement: €94.77 is paid for a first-degree dependence (the insured requires the attendance of another person to perform ordinary daily activities) or €170.58 for a second-degree dependence (the insured is bedridden or suffers from a severe mental illness).
Schedule of payments: Benefits are paid monthly, with additional payments in July and December.
Benefit adjustment: Benefits are adjusted annually according to changes in the GDP growth rate and cost of living.
A partial disability pension can be combined with earnings from gainful activity under certain conditions.
Social disability pension (income-tested): €189.52 a month is paid.
Solidarity extra supplement: €17.54 is paid for persons up to age 69; €35.06 if aged 70 or older.
Long-term care supplement: €85.28 is paid in case of a first-degree dependence or €161.09 in case of a second-degree dependence.
Benefits are payable abroad under reciprocal agreement.
Reference earnings are calculated as the average monthly earnings for all years of coverage, up to 40 years.
For a transitional period, pensions are calculated according to the former method (2% of average annual earnings for the best 10 calendar years out of the last 15 years multiplied by the total number of qualifying calendar years) or the current method (above).
The minimum pension is either 30% of the reference earnings used for pension calculation or a monthly amount fixed according to the length of the insured's career (ranging from €246.36 for a career of up to 15 years to €379.04 for a career of at least 31 years), whichever is greater.
The maximum pension is 92% of the reference earnings used for pension calculation.
Long-term care supplement: €94.77 is paid for a first-degree dependence (the insured requires the attendance of another person to perform ordinary daily activities) or €170.58 for a second-degree dependence (the insured is bedridden or suffers from a severe mental illness).
Schedule of payments: Benefits are paid monthly, with additional payments in July and December.
Benefit adjustment: Benefits are adjusted annually according to changes in the GDP growth rate and cost of living.
A partial disability pension can be combined with earnings from gainful activity under certain conditions.
Social disability pension (income-tested): €189.52 a month is paid.
Solidarity extra supplement: €17.54 is paid for persons up to age 69; €35.06 if aged 70 or older.
Long-term care supplement: €85.28 is paid in case of a first-degree dependence or €161.09 in case of a second-degree dependence.
Benefits are payable abroad under reciprocal agreement.
Survivors benefits for dependents
Survivor pension: The monthly widow(er)'s pension is 60% of the deceased's pension (70% if the spouse and a divorced spouse are both eligible). The pension is limited to 5 years unless the widow(er) is older than age 35, disabled, or caring for a child.
Orphan's pension: The monthly pension is 20% of the deceased's pension for one orphan, 30% for two orphans, or 40% for three or more orphans younger than age 18 (age 27 if a student, no limit if disabled); for full orphans the pension is 40%, 60%, or 80% for one, two, or three or more beneficiaries, respectively.
Other eligible survivors (in the absence of the above): Parents and grandparents receive 30%, 50%, or 80% of the deceased's pension, for one, two, or three or more beneficiaries, respectively.
All survivor benefits combined must not exceed 100% of the deceased's pension.
Schedule of payments: Benefits are paid monthly, with additional payments in July and December.
Benefits are paid abroad.
Death grant: The grant is six times the deceased's average monthly earnings in the best 2 of the last 5 years.
Widow(er)'s social pension (income-tested): The monthly pension is €113.71 (60% of the social pension).
Orphan's social pension (income-tested): The monthly pension is €37.90, €56.85, or €75.80 (20%, 30%, or 40% of the social pension, respectively) for one, two, or three or more orphans, respectively.
Benefits are payable abroad under reciprocal agreement.
Orphan's pension: The monthly pension is 20% of the deceased's pension for one orphan, 30% for two orphans, or 40% for three or more orphans younger than age 18 (age 27 if a student, no limit if disabled); for full orphans the pension is 40%, 60%, or 80% for one, two, or three or more beneficiaries, respectively.
Other eligible survivors (in the absence of the above): Parents and grandparents receive 30%, 50%, or 80% of the deceased's pension, for one, two, or three or more beneficiaries, respectively.
All survivor benefits combined must not exceed 100% of the deceased's pension.
Schedule of payments: Benefits are paid monthly, with additional payments in July and December.
Benefits are paid abroad.
Death grant: The grant is six times the deceased's average monthly earnings in the best 2 of the last 5 years.
Widow(er)'s social pension (income-tested): The monthly pension is €113.71 (60% of the social pension).
Orphan's social pension (income-tested): The monthly pension is €37.90, €56.85, or €75.80 (20%, 30%, or 40% of the social pension, respectively) for one, two, or three or more orphans, respectively.
Benefits are payable abroad under reciprocal agreement.
Administrative organization
Ministry of Labor and Social Solidarity (http://www.mtss.gov.pt) provides general supervision through the State Secretariat for Social Security.
Ministry of Labor and Social Solidarity
Praça de Londres, 2-16,
PT-1049-056 Lisbon,
Portugal
Tel.: +(351-21) 842 41 00
Fax: +(351-21) 842 41 08
Social Security Institute (http://www.seg-social.pt) administers the program through the National Pension Center.
Social Security Institut
Rua Rosa Araújo, 43,
PT-1250-194 Lisbon,
Portugal
Tel.: +(351-21) 310 20 00
Fax: +(351-21) 310 20 90
Ministry of Labor and Social Solidarity
Praça de Londres, 2-16,
PT-1049-056 Lisbon,
Portugal
Tel.: +(351-21) 842 41 00
Fax: +(351-21) 842 41 08
Social Security Institute (http://www.seg-social.pt) administers the program through the National Pension Center.
Social Security Institut
Rua Rosa Araújo, 43,
PT-1250-194 Lisbon,
Portugal
Tel.: +(351-21) 310 20 00
Fax: +(351-21) 310 20 90
Last survey reply: 01 January 2010
Last ISSA update: 01 January 2010
Exchange rate: US$1.00 equals 0.70 euros (€).