Pension
All employees are covered by a national social security system that provides funds upon retirement. The retirement age is 66 years and 4 months in 2024 and 66 years and 7 months in 2025. Employees must have paid contributions for 15 years. Early retirement may be available at the age of 57 years with at least 22 years of contributions.
The monthly pension is calculated as 2% of the average remuneration of the employee per year of contribution for less than 20 years of contribution. For contributions of 21 or more years, the amount of pension depends on the average remuneration relative to the social support index value. The maximum pension is 92% of the average salary. Pensioners are entitled to receive an additional bonus equal to the monthly pension in July and December every year.
Contributions to social security are paid by both the employees and employers.
Dependents/Survivors Benefits
Survivors of a deceased employee are entitled to benefits if the employee has made at least 36 monthly contributions. Survivors include spouses, ex-spouses, dependent children, and ascendants of the deceased employee. The pension paid to survivors is dependent on the old-age or disability pension the employee was entitled to receive or would have been entitled to receive. Pension is 60% for a spouse, 20-40% for children, and 30-80% for descendants (depending on the number of survivors). In addition, a lump-sum death grant is paid to the beneficiary's family members as EUR 1,527.78.
Employers are responsible for paying pensions to the survivors of employees who die due to work accidents or occupational diseases. The pension is 30-40% for the spouse, 20-50% for children, and 10-30% for descendants (depending on the number of survivors).
Invalidity Benefits
The National Social Security Scheme of Portugal provides life and disability benefits to insured employees who have permanently lost more than a third or the entirety of their ability to earn with at least 3-5 years of either collective or cumulative remuneration. The employee must also have exhausted sickness benefits and is subject to incapacity verification assessments.
Employees are also entitled to compensation from their employers for damages from a work-related accident or illness. Compensation depends on the type and degree of disability. Employers also cover expenses incurred in medical treatment.