Portugal
Amendment to the Social Security Contributory Regimes Code
Impact date: 1 January 2026
Decree-Law No 127/2025 of 9 December amended the Social Security Contributory Regimes Code and introduced the following amendments:
1. Communication of Employee Admissions
- the hiring of all employees must be mandatorily communicated through “Segurança Social Direta”
- this communication must be made no later than the start of the employment contract
- in addition to the Social Security Identification Number (NISS) and the type of contract, employers are now also required to report the employee’s permanent remuneration
- failure to communicate the admission results in a legal presumption that the employment relationship began on the first day of the third month prior to the non-compliance, unless proven otherwise
2. Declaration of Remunerations
- a confirmation system of amounts automatically calculated based on previously reported information (permanent remuneration) has been introduced
- confirmation must occur by the 20th day of the following month
- silence is deemed automatic acceptance of the amounts calculated by the system
3. Correction of Data
- Social Security may complete or correct missing or incomplete data
- corrections are made based on the information available in the system, and the employer is notified accordingly
4. Payment of Contributions
- the payment of contributions and deductions is now based on the data available in the system
- payment must be made between the 1st and the 25th day of the month following the relevant remuneration period
Employer implications/action needed Under the new regime, employers face increased responsibilities for accurate and timely digital reporting of employee data, remuneration and contributions.
Employer risk Potential legal and financial consequences for non-compliance.
Statute of the Informal Caregiver
Impact date: 1 January 2026
Decree-Law No. 138/2025 of 29 December updates the Statute of the Informal Caregiver to clarify caregivers’ rights. It also amends the regulatory framework governing how caregivers are recognized and supported, ensuring that the contribution for primary informal caregivers remains part of the social protection system and updating the rules for its access.
Employer implications/action needed N/A
Employer risk N/A
Minimum wage increase
Impact date: 1 January 2026
Decree-Law No. 139/2025 of 29 December updates the statutory minimum wage in Portugal (RMMG) to €920 per month for 2026 and establishes special rules for certain service contracts affected by this wage increase.
Employer implications/action needed Employers must adjust employees’ salaries, where necessary, to ensure compliance with the statutory minimum wage in 2026.
Employer risk Employers face the risk of legal penalties or contractual disputes if they fail to comply with the statutory minimum wage.
Retirement age in 2027
Impact date: 1 January 2026
Executive Order No. 476/2025/1 of 29 December updates the age for accessing a standard old-age pension to 66 years and 11 months in 2027.
Employer implications/action needed N/A
Employer risk N/A
Annual update of the Social Support Index
Impact date: 1 January 2026
Executive Order No. 480-A/2025/1 of 30 December updates the Social Support Index (IAS – Indexante dos Apoios Sociais), setting the IAS for 2026 at €537.13.
Employer implications/action needed N/A
Employer risk N/A
Annual update of pensions and other social benefits
Impact date: 1 January 2026
Executive Order No. 480 B/2025/1 of 30 December updates pensions and other social benefits paid under the Portuguese social security system, as well as pensions paid by the Caixa Geral de Aposentações (CGA) and other regimes.
Employer implications/action needed N/A
Employer risk N/A
Annual update of work-accident pensions
Impact date: 1 January 2026
Executive Order No. 480 C/2025/1 of 30 December updates the work-accident pensions. Pensions for permanent disability and death resulting from work accidents are increased by 2.80% for 2026.
Employer implications/action needed N/A
Employer risk N/A
Update of the reference value of the Solidarity Supplement for the Elderly
Impact date: 1 January 2026
Executive Order No. 480-D/2025/1 of 30 December updates the reference value of the Solidarity Supplement for the Elderly (CSI), setting its annual reference amount at €8,040.00.
Employer implications/action needed N/A
Employer risk N/A
Update of the meal allowance for Public Administration employees
Impact date: 1 January 2026
Executive Order No. 51 B/2026/1 of 30 January 2026 updates the meal allowance for Public Administration employees to €6.15 per day.
Employer implications/action needed Although the Executive Order directly concerns public sector allowances, the increase also affects the tax exemption thresholds applicable in the private sector:
- €6.15 per day when paid in cash, and
- €10.46 per day when paid via meal card or voucher
Employer risk N/A
Update of the annual reference value of the base component, annual reference value of the social inclusion benefit supplement and annual maximum limit for the accumulation of the base component with earned income
Impact date: 1 January 2026
Executive Order No 58-A/2026/1 of 3 February updates the Social Inclusion Benefit (PSI) — a social benefit in Portugal designed to support people with disabilities and help combat poverty and social exclusion. The ordinance adjusts the following key parameters for 2026:
1. Base Component of the PSI
- the annual reference value of the base component of the PSI has been updated to €4,003.68 for 2026
2. PSI Supplement
- the annual reference value of the PSI supplement has been set at €8,040 for 2026
3. Maximum Accumulation Limit with Earned Income
- the annual maximum limit for accumulating the base component of the PSI with earned income is €12,880 for 2026
Employer implications/action needed N/A
Employer risk N/A
Reference value of social insertion income benefit
Impact date: 1 January 2026
Executive Order No 71/2026/1, 13 February updates the reference value of the social insertion income benefit (RSI) for the year 2026. RSI is a social benefit designed to guarantee a minimum income and help combat poverty and social exclusion. The updated RSI reference value for 2026 is €247.56 per month.
Employer implications/action needed N/A
Employer risk N/A
Social support and simplified lay off scheme for areas affected by Storm “Kristin”
Impact date: 28 January 2026
Decree Law No. 31 C/2026, 5 February establishes a special regime of social support and a simplified lay off scheme for areas affected by Storm “Kristin”, aimed at helping families, employees and businesses in the disaster zone recover from the impacts of the storm.
Here are some of the key highlights:
I. Simplified lay-off legal framework
In circumstances involving a business crisis resulting of the storm, employers may resort to the layoff provisions established by the Labour Code. This procedure is simplified, alleviating certain requirements related to employer communications, as well as the need for information sharing and consultation with employee representative bodies.
To evidence the situation of business crisis, it is sufficient to apply on the gov.pt and Social Security websites, providing the following elements: a) economic, financial or technical grounds b) chart of employees, broken down by sections c) criteria for selection of the affected employees and d) number and professional categories of affected employees II. Exemption of contributions to social security
Two types of exemptions are set out:
- total exemption: up to six months (extendable), for employers (and their statutory body members) and self-employed workers directly affected by the state of calamity (e.g. loss of premises and work tools)
- partial exemption: 50% of the contribution rate for a year, for employers hiring unemployed individuals affected by the disaster
In both cases, access requirements are specified, including the absence of outstanding debts to the Tax and Social Security authorities.
Exemption from the payment of contributions must be requested by means of an application form available at the Social Security platform (“Segurança Social Direta”) website.
III. Extraordinary financial incentive for job retention
This Decree-Law also regulates the financial aid in the field of employment and vocational training, to be granted by the IEFP, I.P. (“Instituto do Emprego e Formação Profissional, I.P”), for affected employers and employees (dependent and independent).
This financial aid is intended to support the payment of salaries, up to a limit, per employee, equivalent to two times the national minimum wage.
This support is granted for three months, extendable for an equal period.
Self-employed workers who have suffered a significant loss of income are also eligible for this extraordinary financial aid.
It must be requested to the IEFP, I.P. employment and vocational training center, either in person or electronically, using a form that is yet to be approved.
This regime is exceptional and temporary, applying only to companies located in the municipalities covered by the state of emergency and until the end of its duration, which has been extended until 11:59 pm of 15 February.
Employer implications/action needed The decree provides employers in storm-affected areas with temporary flexibility and wage relief through a simplified lay-off scheme and partial or total exemption from social security contributions.
Employer risk N/A
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