ᐅ Last reviewed 20 January 2024
Persons liable for Social Security contributions
Social security contributions (either predetermined by law or agreed upon by conventions) are due on the remunerations obtained by:
employees;
board members;
self-employed workers.
Excluded income
Daily allowances (capped at the amount determined for PIT purposes).
Supplementary retirement pensions.
Supplementary sickness benefits.
Transportation expenses. (1)
Profit distributions.
Compensation for unused holidays or days off.
Compensation for the termination of the labour contract. (2)
Lunch allowance (capped at the amounts determined for PIT purposes) and cost of meals made available at the employer’s canteens.
Vacation, Christmas and other similar allowances in the part covered by collective agreements.
Occasional subsidies granted to employees and respective relatives for medical assistance/medicines.
Subsidy for the employees’ family expenses namely kindergarten, pre-school, educational facilities, retirement homes and other social support services or facilites.so
Discounts granted to employees for the acquisition of shareholdings in the employer company or in group companies.
(1) In case the company makes available transportation to its employees that does not exceed the value of the social pass, or, in its absence, the amount that would result from using public transportation. In all these cases this benefit should have a general character.
(2) The exemption is applicable in the following situations:
i) following a declaration of illegal termination of employment issued by a court;
ii) following a collective dismissal; elimination of the job concerned; inability of the employee to perform the work; lack of prior notice for termination; expiration of the work contract and termination by the employee;
iii) following the termination of the labour contract prior to the end date, in case of labour contracts with a term.
Social Security regimes
Description
Employee
Company
Employees
11%
23.75%
Students in school holidays
–
26.1%
Disabled people with undetermined term labour contract (1)
11%
11.90%
Very long-lasting unemployment
11%
(2)
First employment and long-lasting unemployment
11%
(3)
Employees in early-retirement period, whose agreement foresees:
1) Suspension of the performance of work
2) Reduction of the performance of work
18.30%
8.60%
Rate determined at the time of the early-retirement applies
Pensioners performing work:
1) Old Age
- Performing public functions
- No public functions performed
2) Invalidity
- Performing public functions
- No public functions performed
7.80%
7.50%
9.20%
8.90%
17.50%
16.40%
20.40%
19.30%
Statutory board members (4)
9.3% / 11%
20.3% / 23.75%
Self-employed
21.4% / 25.2% (5)
7% / 10% (6)
Short term assignment:
To other countries
To Portugal
(7)
(8)
–
–
(1) Ability to work is less than 80%.
(2) Exemption for a period of 3 years.
(3) 50% temporary reduction on the contribution owed by employers, for a maximum period of 5 years (in case of young people looking for a first job) or 3 years (hiring of long-term unemployed people), under certain conditions and requirements.
(4) Minimum cap of one Social Support Index (amounting to € 509.26 in 2024). Board members performing management or administration functions are entitled to protection in the event of unemployment. The applicable rates are 34.75% - 23.75% to the employer and 11% to the employee. A rate of 20.3% (employer) and 9.3% (employee) applies for other board members.
(5) After the first twelve months of activity. Social protection granted to self-employed workers who are entrepreneurs, and owners of Individual Establishments of Limited Responsibility and respective spouses shall include the right to protection in the event of unemployment. In these cases, the contribution rate is set at 25.2%.
(6) A 7% contribution rate is due by employers in case 50% to 80% of the total amount the activity of a self-employed worker is carried out on behalf of the same employer in a given calendar year (natural or legal person, regardless of the respective nature and purpose). If representing more than 80% of the activity, the applicable rate is 10%. This obligation applies only in case self-employees are obliged to make contributions with an annual income exceeding 6 x Social Support Index (€ 3.055,56, considering the Social Support Index in force in 2024).
(7) May continue to make contributions in Portugal.
(8) May continue to make contributions in the country of origin, being temporarily exempt in Portugal.