Social Security

[goispro]

Social Security

• The social security system in Portugal is known as Segurança Social, and provides benefits for health care, sickness, retirement, disability, death and old age, maternity, paternity and adoption.
• It is obligatory to make contributions if you are working in Portugal and not making contributions to the social security system of another country (see below). Voluntary registration can also be made by those who aren’t required to register.
• Employers must notify the Segurança Social when an employee starts work, and make payments deducted from the employee’s gross wage to the Segurança Social by the 15th day of the following month. The contribution is based on the actual monthly income of the individual.
• For the self- employed there is a choice of paying the mandatory 25.4% rate that gives compulsory cover only (retirement, disability, death and old age, maternity, paternity and adoption), or a 32% rate that also covers sickness and other family benefits. These rates apply on a monthly basis on an amount determined by the individual equal to between 1 and 12 times the Portuguese minimum monthly wage. Contributions are limited to a maximum of six times the minimum monthly wage for those aged 55 or over.
• All compulsory social security contributions are tax deductible.
• Portugal has reciprocal social security agreements with all EU countries plus Andorra, Argentina, Australia, Brazil, Cabo Verde, Canada, Iceland, Norway, Switzerland, Turkey, Uruguay, the USA and Venezuela. Employees from these countries who are transferred to Portugal for a limited period only and who continue to contribute to their home country’s social security scheme are exempt from paying contributions in Portugal for a period of one year. This exemption may be extended, but once the exemption period has elapsed, employees must pay social security contributions in Portugal.
• Credit for social security contributions made outside of Portugal may be taken into consideration by authorities when an individual applies for Portuguese benefits. EU citizens should fill out Form E106, available from their home country's social security office.
• For more information please see the Portuguese social security system website www.seg-social.pt or ring the free telephone hotline: Tel. 800-290 029 - Monday to Friday from 9am to 7pm.