Portugal

Old Age, Disability, and Survivors

Regulatory Framework

First law: 1935 (1919 legislation not implemented).

Current laws: 1980 (noncontributory scheme), 1980 (social pension), 1990 (survivor pension), 1994 (survivor benefits), 2007 (general scheme), 2007 (social security system), 2009 (disability), and 2009, 2010, and 2011 (contributory schemes).

Type of program: Social insurance and social assistance system.

Coverage

Social insurance: Employed persons; 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 social benefit rate and for persons not covered by any other compulsory contributory program.

The social benefit rate is €419.22 a month.

Special systems are being gradually unified with the general system.

Social assistance: Residents of Portugal, including citizens of Australia, Brazil, Canada, Cape Verde, and the European Union countries.

Source of Funds

Insured person

Social insurance: 11% of gross earnings.

Of the total 34.75% of the combined insured person and employer contributions, 20.21% finances old-age benefits, 4.29% finances disability benefits, and 2.44% finances survivor benefits.

The insured's contributions also finance sickness and maternity, occupational disease, and unemployment benefits.

Social assistance: None.

Self-employed person

Social insurance: 29.6% of reference income; 34.75% for special categories of self-employed persons (sole proprietors and owners of Single Member Limited Liability Companies as well as their spouses or partners).

The self-employed person chooses the reference income used to calculate contributions from a range of one to 11 times the social benefit rate.

The social benefit rate is €419.22 a month.

The self-employed person's contributions also finance sickness, maternity, and occupational disease benefits; for special categories of self-employed persons, the contributions also finance unemployment benefits.

Social assistance: None.

Employer

Social insurance: 23.75% of payroll; 5% of the reference income for self-employed persons who are economically dependent on an employer (if he or she receives 80% of total annual income from the employer).

Of the total 34.75% of the combined insured person and employer contributions, 20.21% finances old-age benefits, 4.29% finances disability benefits, 2.44% finances survivor benefits.

The employer's contributions also finance sickness and maternity, occupational disease, and unemployment benefits.

Social assistance: None.

Government

Social insurance: Partially finances the program through a portion of the value-added tax.

Social assistance: The total cost.

Qualifying Conditions

Old-age pension (social insurance): Age 66 and two months with at least 15 calendar years of contributions; certain workers, such as miners, seamen, and fishermen, may retire earlier with at least 15 calendar years of contributions.

A qualifying calendar year requires 120 days of registered pay. Calendar years with less than 120 days may be combined to complete a single year. Coverage periods under other domestic or foreign social security programs may be included with at least one calendar year of registered earnings under the general system.

Early pension: Age 55 with at least 30 calendar years of contributions.

Deferred pension: The pension may be deferred until age 70.

Unemployed worker's old-age pension (social insurance): Age 62 with at least 15 years of contributions and unemployed; or age 57 with at least 22 years of contributions and unemployed. Unemployment must have begun since age 57 (with 15 years of contributions) or age 52 (with 22 years of contributions) and the insured must have exhausted entitlement to unemployment benefits.

Long-term care supplement: Paid for a first-degree dependence (the insured person's income must not exceed €600 and 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).

Dependent spouse's supplement: Paid to pensioners with a dependent spouse who first received a pension before January 1, 1994.

Employment must cease.

Benefits are payable abroad.

Old-age social pension (social assistance, means tested): Age 66 and two months and ineligible for any contributory social security program.

Means test: Monthly income must not exceed 40% (for an unmarried person) or 60% (for a couple) of the social benefit rate.

The social benefit rate is €419.22 a month.

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).

Benefits are payable abroad under reciprocal agreement.

Solidarity supplement for the elderly (social assistance, means tested): Paid to pensioners aged 66 and two months or older, to recipients of the lifelong allowance (see Family Allowances) and to elderly persons ineligible for the old-age social pension. The insured must have resided in Portugal for at least six years before applying for the benefit.

Means test: The beneficiary's annual income must be less than €5,022; €8,788.50 for a couple.

Disability pension (social insurance): Paid for a total disability (100% loss of earning capacity) with at least three calendar years of contributions and for a partial disability (at least a 66.7% loss of earning capacity) with at least five calendar years of contributions.

A special disability pension is paid to persons with a permanent disability who cannot work even through the use of appliances or other support products.

Long-term care supplement: Paid for a first-degree dependence (the insured person's income not to exceed €600 and 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).

Disability social pension (social assistance, means tested): Aged 18 or older, disabled, and ineligible for any contributory social security program

Means test: Monthly income must not exceed 40% (for an unmarried person) or 60% (for a couple) of the social benefit rate.

The social benefit rate is €419.22 a month.

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).

Benefits are payable abroad under reciprocal agreement.

Survivor pension (social insurance): The deceased had at least 36 months of contributions at the time of death.

Eligible survivors include the surviving spouse, ex-spouse or common law partner and children younger than age 18 (age 27 if a student, no limit if disabled or if receiving a social pension).

Benefits are payable abroad.

Spouse's social pension (social assistance, means tested): Paid if the deceased was receiving an old-age or disability social pension.

Means test: Monthly income must not exceed 40% (for an unmarried person) or 60% (for a couple) of the social benefit rate.

The social benefit rate is €419.22 a month.

Orphan's social pension (social assistance, means tested): Paid if the deceased was receiving an old-age or disability social pension.

Means test: Monthly income must not exceed 40% (for an unmarried person) or 60% (for a couple) of the social benefit rate.

The social benefit rate is €419.22 a month.

Death grant (social insurance): Paid when an insured person dies.

Benefits are payable abroad under reciprocal agreement.

Funeral grant (social assistance, means tested): Paid if the deceased was a resident of Portugal and was not entitled to a death grant.

Old-Age Benefits

Old-age pension (social insurance): 2% of the insured's reference earnings is paid with less than 21 qualifying years; 2% to 2.3% according to the insured's reference earnings for 21 to 40 years; 3% for certain diseases.

Reference earnings are the average monthly earnings for all years of coverage, up to 40 years.

For a transitional period (through December 31, 2016), pensions may be calculated according to the previous 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 a fixed monthly amount according to the number of calendar years of contributions (ranging from €261.95 with up to 15 calendar years of contributions to €379.04 with at least 31 years).

There is no maximum pension, but the amount may not exceed 92% of the reference earnings used for pension calculation.

Unemployed worker's old-age pension (social insurance): No reduction if aged 62 and unemployment began since age 57; the pension is reduced by 0.5% if aged 57 and unemployment began since age 52.

Early pension: The pension is reduced by 0.5% for each month the pension is received before the normal retirement age. (For each calendar year of contributions greater than 40 calendar years, 4 months of reductions are waived.) The early pension amount is adjusted according to the financial sustainability factor.

The financial sustainability factor is calculated based on the average life expectancy at age 65 in 2000 and in the year before the early retirement.

Deferred pension: The pension is increased for each additional calendar year of contributions from the normal retirement age to age 70 (from 0.33% a year with 15 to 24 calendar years of contributions to 1% a year with more than 40 calendar years) plus 0.65% for each month from the eligibility age for an early pension without a reduction and the normal retirement age.

Long-term care supplement: €100.77 is paid for a first-degree dependence; €181.58 for a second-degree dependence.

Dependent spouse's supplement: €36.80 a month is paid.

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 the consumer price index without housing (suspended since 2010).

Old-age social pension (social assistance, means tested): €237.33 a month (plus an additional payment of €219.07 in July) is paid if younger than age 70; €256.30 (plus an additional €236.59 in July) if aged 70 or older.

The monthly amount includes a basic social pension, an extra payment divided in 12 months and a solidarity extra supplement.

Long-term care supplement: €90.69 is paid for a first-degree dependence; €171.30 for a second-degree dependence.

Solidarity supplement for the elderly (social assistance, means tested): The annual supplement is the difference between the insured's annual income and the supplement annual threshold of €5,022 for a single person or €8,788.50 for a couple.

Benefit adjustment: Benefits are adjusted annually according to changes in the GDP growth rate and the consumer price index without housing.

Permanent Disability Benefits

Disability pension (social insurance): 2% of the insured's reference earnings is paid with less than 21 qualifying years; 2% to 2.3% according to the insured's reference earnings for 21 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 (through December 31, 2016), pensions may be calculated according to the previous 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 a fixed monthly amount according to the number of calendar years of contributions, from €261.95 with less than 15 calendar years of contributions to €379.04 with 31 years or more.

There is no maximum pension but the amount may not exceed 92% of the reference earnings used for pension calculation.

At the normal retirement age the disability pension is converted into an old-age pension. The financial sustainability factor is applied to the amount of the pension, unless the person has been receiving a total disability pension for more than 20 years.

The financial sustainability factor is calculated based on the average life expectancy at age 65 in 2000 and in the year before the early retirement.

Long-term care supplement: €100.77 is paid for a first-degree dependence; €181.38 for a second-degree dependence.

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 consumer's price index without housing (suspended since 2010).

A partial disability pension can be combined with earnings from gainful activity under certain conditions.

Disability social pension (social assistance, means tested): €237.33 a month (plus an additional payment of €219.07 in July) is paid if younger than age 70; €256.30 (plus an additional €236.59 in July) if aged 70 or older.

The monthly amount includes a basic social pension, an extra payment divided in 12 months, and a solidarity extra supplement.

Long-term care supplement: €90.69 is paid for a first-degree dependence; €171.30 for a second-degree dependence.

Benefit adjustment: Benefits are adjusted annually according to changes in the GDP growth rate and the consumer price index without housing.

Survivor Benefits

Spouse's pension (social insurance): 60% of the old-age or disability pension the deceased received or was entitled to receive (70% if both the surviving spouse and a divorced spouse are eligible) is paid. For a spouse younger than age 35, the pension is paid for five years or, if the spouse has a child, until the youngest child is no longer entitled to receive an orphan's pension. No limit with a total disability or if the spouse is aged 35 or older.

Orphan's pension: 20% of the old-age or disability pension the deceased received or was entitled to receive is paid 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); the pension is doubled for full orphans.

Other eligible survivors (in the absence of the above): 30%, 50%, or 80% of the deceased's pension is paid to parents and grandparents 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.

Spouse's social pension (social assistance, means tested): 60% of the social pension is paid.

The social pension is €201.53 a month.

Orphan's social pension (social assistance, means tested): 20%, 30% or 40% of the social pension is paid, for one, two or more orphans, respectively; the pension is doubled for full orphans.

The social pension is €201.53 a month.

Death grant (social insurance): A lump sum of three times the social benefit rate is paid.

The social benefit rate is €419.22 a month.

Benefit adjustment: Benefits are adjusted annually according to changes in the GDP growth rate and the consumer price index without housing.

Funeral grant (social assistance, means tested): €213.86 is paid.

Administrative Organization

Ministry of Labor, Solidarity, and Social Security (http://www.portugal.gov.pt/pt/ministerios/mtsss.aspx) provides general supervision through the State Secretariat for Social Security.

Social Security Institute (http://www.seg-social.pt) administers the program through the National Pension Center.

Sickness and Maternity

Regulatory Framework

First law: 1935 (1919 legislation not implemented).

Current laws: 1979 (National Health Service); 1990 (Framework Law on Health); 2004, 2005, 2009 (sickness); 2007 (social security); 2009 (contributory schemes); 2009 (parental benefits); 2010 (means test); and 2011 (co-payments).

Type of program: Social insurance (cash benefits), social assistance (cash benefits), and universal (medical benefits) system.

Coverage

Cash sickness benefits (social insurance): Employed and self-employed persons, including household workers.

Voluntary coverage for certain categories of persons not covered by any other compulsory contributory program.

Cash maternity, paternity, and adoption benefits (social insurance): Employed and self-employed persons.

Voluntary coverage for certain categories of persons not covered by any other compulsory contributory program.

Cash maternity, paternity, and adoption benefits (social assistance): Needy residents of Portugal.

Medical benefits: Residents of Portugal, including illegal immigrants.

Source of Funds

Insured person: Of the total 34.75% of the combined insured person and employer contributions (see source of funds under Old Age, Disability, and Survivors), 1.41% of gross earnings finances sickness benefits and 0.76% finances maternity benefits.

Self-employed person: See source of funds under Old Age, Disability, and Survivors.

Employer: Of the total 34.75% of the combined insured person and employer contributions (see source of funds under Old Age, Disability, and Survivors), 1.41% finances sickness benefits and 0.76% finances maternity benefits.

Government: The cost of cash benefits for social assistance recipients; finances medical benefits.

Qualifying Conditions

Cash sickness benefit (social insurance): Must have at least six months of contributions, including 12 days of paid or credited (for paid sick leave occurring within 60 days after the end of a previous illness; paid maternity, paternity, or adoption leave; or compulsory military or community service) contributions in the four months before the month in which the incapacity began.

Maternity, paternity, and adoption benefits (subsidio parental, social insurance): Must have at least six months of contributions. A disabled or sick child allowance is also paid to grandparents if the child's parent is younger than age 16 and lives at home; allowance is not paid to self-employed persons.

Maternity risk allowance (subsídio por risco clínico durante a gravidez, social insurance): Paid for an at-risk pregnancy to insured women with at least six months of contributions before ceasing work because of the pregnancy. A medical certification is required.

Special maternity allowance (subsídio por riscos específicos, social insurance): Must have at least six months of contributions and work at night or be exposed to workplace health and safety risks, and is pregnant, recently gave birth, or breastfeeds an infant.

Grandparent's benefit (subsídio para assistência a neto, social insurance): Must have at least six months of contributions, the adolescent parent must be younger than age 16 and the child must live with the grandparents.

Disabled or sick child allowance (subsidio para assistencia a filho, social insurance): Paid to a parent with at least six months of contributions who takes care of a child due to sickness or accident. Both parents must be working.

Maternity, paternity, and adoption benefits (subsidio social parental, social assistance, means tested): Must not qualify for maternity or paternity contributory benefits (social insurance).

Means test: Total household assets (bank accounts, stocks, investment funds, etc.) must not exceed 240 times the social benefit rate. Monthly household per capita income must not exceed 80% of the social benefit rate.

The social benefit rate is €419.22 a month.

Prenatal family allowance (abono de família pré-natal, social assistance, means tested): Paid to a resident pregnant mother from the 13th week of the pregnancy for six months or until childbirth. The pregnancy must be confirmed.

Means test: Total household assets (bank accounts, stocks, investment funds, etc.) must not exceed 240 times the social benefit rate or an annual reference income exceeding €8,803.63.

The social benefit rate is €419.22 a month.

Maternity risk social allowance (subsídio social por risco clínico durante a gravidez, social assistance, means tested): Paid for an at-risk pregnancy to women who do not qualify for contributory benefits (social insurance). A medical certification is required stating the length of the leave.

Means test: Total household assets (bank accounts, stocks, investment funds, etc.) must not exceed 240 times the social benefit rate. Monthly household per capita income must not exceed 80% of the social benefit rate.

The social benefit rate is €419.22 a month.

Special maternity allowance (subsídio social por riscos específicos, social assistance): Paid to a resident pregnant mother not entitled to the contributory benefit (social insurance) who works at night or is exposed to workplace health and safety risks, and is pregnant, recently gave birth, or breastfeeds an infant.

Sickness and Maternity Benefits

Cash sickness benefit (social insurance): 55% of the insured's average daily earnings is paid for the first 30 days (with a minimum benefit of €300 if the insured's monthly reference salary is higher than €500); 60% from the 31st up to the 90th day (with a minimum benefit of €325 if the insured's monthly reference salary is higher than €500); 70% from the 91st up to the 365th day; thereafter, 75%.

If the insured's monthly reference salary is €500 or less, if the insured has three or more children aged 16 or younger (aged 24 or younger if receiving family allowances), or if the insured receives family allowances (abono de familia), 60% of the insured's average daily earnings is paid for the first 30 days; 65% from the 31st up to the 90th day; 70% from the 91st up to the 365th day; thereafter, 75%.

For tuberculosis, 80% of the insured's average daily earnings is paid if the insured has two dependents; 100% with three or more dependents.

The benefit is paid after a three-day waiting period (30 days for self-employed persons; no waiting period for hospitalization, tuberculosis, or during the postpartum period).

The benefit is paid for up to 1,095 days (365 days for self-employed persons); no limit for tuberculosis.

Average daily earnings are the insured's net earnings (minus social insurance contributions and tax) in the six months prior to the last two months before the incapacity began.

The minimum sickness benefit is either 30% of the social benefit rate or 100% of the average reference earnings, whichever is lower.

The social benefit rate is €419.22 a month.

The maximum sickness benefit is the insured's average daily earnings used for cash sickness benefit calculation.

Maternity and paternity benefit (subsidio parental, social insurance): 100% of the insured's average daily earnings is paid to an insured mother and father for a shared total of 120 days (may be extended for up to 30 days for multiple births or if the leave is shared by both parents in separate periods). The beneficiary can opt for a 150-day leave period paid at 80% of the insured's daily earnings (may also be extended for up to 30 days at 83%). For multiple births, 30 days for each additional child.

In the event of clinical risk or voluntary interruption of pregnancy, 14 to 30 days of benefits are paid (may be extended for clinical risk).

Average daily earnings are the insured's earnings in the six months prior to the last two months before the expected date of childbirth.

The benefit is paid exclusively to the mother for a minimum period of up to 72 days (30 optional days before and 42 compulsory days after childbirth for employed mothers; 42 days after childbirth for other mothers).

The benefit must be paid to the father for at least 10 days (five days immediately after childbirth and five days in the 30 days following childbirth); may be extended by two days for each child from a multiple birth.

If one parent is unable to take leave due to physical or mental illness or if one parent dies, the entire benefit is paid to the other parent.

The daily minimum benefit is 80% of 1/30 of the social benefit rate (40% for an extended benefit).

The social benefit rate is €419.22 a month.

The benefit may be paid for up to an additional three months.

Adoption benefit (social insurance): 100% of the insured's average daily earnings is paid for the first 120 days following the adoption of a child younger than age 15 (may be extended for up to 30 days for a multiple adoption or if the leave is shared by both parents in separate periods). The beneficiary can opt for a 150-day leave period paid at 80% of the insured's daily earnings (may also be extended for up to 30 days if the leave is shared by both parents in separate periods-paid at 83%). For multiple adoptions, 30 days for each additional child.

Average daily earnings are the earnings in the six months prior to the last two months before the adoption.

The benefit may be paid for up to an additional three months.

The daily minimum benefit is 80% of 1/30 of the social benefit rate (40% for an extended benefit).

The social benefit rate is €419.22 a month.

Maternity risk allowance (subsídio por risco clínico durante a gravidez, social insurance): 100% of the insured's average daily earnings is paid to an insured mother; the duration is determined by the medical certificate.

Special maternity allowance (subsídio por riscos específicos, social insurance): 65% of the insured's average daily earnings is paid.

Average daily earnings are based on the insured's earnings in the six months prior to the last two months before childbirth.

The daily minimum benefit is 80% of 1/30 of the social benefit rate (40% for an extended benefit).

The social benefit rate is €419.22 a month.

Grandparent's benefit (subsídio para assistência a neto, social insurance): 100% of the insured's average daily earnings is paid to the grandparents for up to a shared total of 30 days after childbirth; 65% of the insured's average daily earnings for up to 30 days a year for the sickness or accident of a dependent grandchild younger than age 18 (no limit if disabled).

Average daily earnings are the insured's earnings in the six months prior to the last two months before childbirth.

Disabled or sick child allowance (subsidio para assistencia a filho, social insurance): 65% of the insured's average daily earnings is paid for up to 30 days a year to each sick or injured child (or stepchild) younger than age 12 in need of care and living with the insured (no limit for a child with disability); 15 days for children aged 12 to 18 (at any age if dependent and living at home). The benefit period is increased by one day for each additional child. For a child with a serious disability or chronic illness, the allowance is paid for up to six months; may be extended for up to four years.

Average daily earnings are the insured's earnings in the six months prior to the last two months before the month the incapacity began.

Cash maternity, paternity, and adoption benefits (subsidio social parental, social assistance): 80% of the daily social benefit rate is paid for a 120-day parental leave period; 64% for a 150-day parental leave period; 66% in case of a 180-day shared leave period.

The social benefit rate is €419.22 a month.

Means test: Total household assets (bank accounts, stocks, investment funds, etc.) must not exceed 240 times the value of the social benefit rate. Monthly household per capita income must not exceed 80% of the social benefit rate.

Prenatal family allowance (abono de família pré-natal, social assistance, means tested): From €94.14 to €145.69 a month is paid for a child for six months; the benefit is doubled for twins and triplets; the benefit is increased by 35% for single parents.

Maternity risk social allowance (subsídio social por risco clínico durante a gravidez, social assistance, means tested): 80% of the daily social benefit rate is paid.

The social benefit rate is €419.22 a month.

Means test: Total household assets (bank accounts, stocks, investment funds, etc.) must not exceed 240 times the value of the social benefit rate. Monthly household per capita income must not exceed 80% of the social benefit rate.

Special maternity social allowance (subsídio social por riscos específicos, social assistance): 80% of the daily social benefit rate is paid to a woman who works at night or is exposed to workplace health and safety risks, and is pregnant, recently gave birth, or breastfeeds an infant.

The social benefit rate is €419.22 a month.

Means test: Total household assets (bank accounts, stocks, investment funds, etc.) must not exceed 240 times the value of the social benefit rate. Monthly household per capita income must not exceed 80% of the social benefit rate.

Workers' Medical Benefits

The National Health Service (NHS) provides medical services through hospitals, local health services, health centers, and groups of health centers. Benefits include general and specialist care, maternity care, hospitalization, surgery, approved medications, transportation, and long-term care.

Cost sharing: Patients pay €5 for a general practitioner visit; €4 for a nurse; €7.75 for a specialist; €10.30 for a home visit; and €15.45 for an emergency visit in NHS hospitals. There is no cost sharing for certain groups, including pregnant women, minors, certain needy persons, and certain unemployed persons.

No cost sharing for hospitalisation.

The government pays a portion of the cost of certain medicine; the total cost for listed essential medicine (such as insulin and immunomodulators). Needy elderly people may be fully reimbursed for dentures, medicine, glasses, and contact lenses.

There is no limit to duration.

Dependents' Medical Benefits

Medical benefits for dependents are the same as those for the insured.

Administrative Organization

Ministry of Labor, Solidarity, and Social Security (http://www.portugal.gov.pt/pt/ministerios/mtsss.aspx) provides general supervision through the State Secretariat for Social Security.

Social Security Institute (http://www.seg-social.pt) administers cash benefits.

Regional health administrations administer medical benefits and are supervised by the Ministry of Health.

Work Injury

Regulatory Framework

First law: 1913.

Current law: 2009 (work injury and occupational diseases).

Type of program: Employer-liability (work injury) and social insurance (occupational diseases) system.

Coverage

Employed and self-employed persons.

There is a special system for civil servants.

Source of Funds

Insured person: None for work injury. For occupational diseases, see source of funds under Old Age, Disability and Survivors.

Self-employed person: Self-employed persons must purchase liability insurance for work injury with a private carrier. For occupational diseases, see source of funds under Old Age, Disability, and Survivors.

Employer: Employers must purchase liability insurance for work injury with a private carrier (premiums vary according to assessed degree of risk). For occupational diseases, see source of funds under Old Age, Disability and Survivors.

Government: None.

Qualifying Conditions

Work injury benefits: There is no minimum qualifying period.

Temporary Disability Benefits

70% of reference earnings is paid during the first 12 months; thereafter, 75%. The benefit is paid until full recovery or certification of permanent total disability.

Reference earnings are based on the insured's gross annual wage.

The minimum reference earnings to calculate the temporary disability benefits is three times the social benefit rate.

The social benefit rate is €419.22 a month.

Partial disability: 70% of the insured's lost earning capacity is paid.

Permanent Disability Benefits

Permanent disability pension (social insurance and employer liability): For a total incapacity for all work, the pension is 80% of reference earnings plus 10% for each dependent, up to 100%. For a total incapacity for work in the usual profession, the pension is from 50% to 70% of reference earnings, depending on the insured's residual earning capacity.

Reference earnings are based on the insured's gross annual wage.

Partial disability: 70% of the insured's lost earning capacity is paid annually for life if the assessed degree of disability is 30% or more; a lump sum is paid for an assessed degree of disability less than 30%.

Survivor Benefits

Spouse's pension (social insurance and employer liability): 30% of the deceased's reference earnings is paid to a surviving spouse, partner, or divorced spouse; 40% if the beneficiary is aged 65 or older or disabled.

Reference earnings are based on the deceased's annual wage (work injury) or the average monthly wage (occupational diseases).

Orphan's pension (social insurance and employer liability): 20% of the deceased's reference earnings is paid for one orphan younger than age 18 (age 22 or 25 if a student); 40% for two orphans; 50% for three or more orphans. Full orphans receive double benefits, up to 80% of the deceased's earnings.

Reference earnings are based on the deceased's annual wage (work injury) or the average monthly wage (occupational diseases).

Parent's pension (social insurance and employer liability): 10% of the deceased's reference earnings is paid to each surviving parent, up to a total of 30%.

Reference earnings are based on the deceased's annual wage (work injury) or the average monthly wage (occupational diseases).

Funeral grant (social insurance and employer liability): The cost of the funeral is paid, up to four times 1.1 times the social benefit rate; the grant is doubled if transportation costs are necessary.

The social benefit rate is €419.22 a month.

Death allowance (social insurance and employer liability): A lump sum of 12 times 1.1 times the social benefit rate is paid (50% to the surviving spouse and 50% to the children; 100% with only one dependent survivor).

The social benefit rate is €419.22 a month.

Certain other allowances are paid under certain conditions, such as the need for constant attendance or training.

Administrative Organization

Work Injury: Ministry of Finance (http://www.portugal.gov.pt/) provides general supervision of the program through the Insurance and Pension Funds Supervision Authority (ASF).

Insurance companies manage work accident insurance policies.

Portuguese Insurance Institute supervises insurance companies.

Occupational disease: Ministry of Labor, Solidarity, and Social Security (http://www.portugal.gov.pt/pt/ministerios/mtsss.aspx) provides general supervision of the program.

Social Security Institute (http://www.seg-social.pt) administers the program through the National Occupational Disease Insurance Fund.

Unemployment

Regulatory Framework

First law: 1975.

Current law: 2006 and 2010 (unemployment), 2009 (contributory schemes), and 2010 (means test).

Type of program: Social insurance and social assistance system.

Coverage

Employed persons and previously disabled persons reassessed as capable of work.

Certain categories of self-employed persons: sole proprietors and owners of Single Member Limited Liability Companies and their spouses or partners, and persons who are economically dependent on an employer (if he or she receives 80% of total annual income from the employer).

Source of Funds

Insured person: Of the total 34.75% of the combined insured person and employer contributions (see source of funds under Old Age, Disability, and Survivors), 5.14% finances unemployment benefits.

Self-employed person: For sole proprietors and owners of Single Member Limited Liability Companies and their spouses or partners, and persons who are economically dependent on an employer (if he or she receives 80% of total annual income from the employer) see source of funds under Old Age, Disability and Survivors.

Employer: Of the total 34.75% of the combined insured person and employer contributions (see source of funds under Old Age, Disability, and Survivors), 5.14% finances unemployment benefits.

5% of the reference income for self-employed persons who are economically dependent on an employer (if he or she receives 80% of total annual income from the employer).

Government: None.

Qualifying Conditions

Unemployment benefit: Must have at least 360 days of contributions in the last 24 months before unemployment (720 days in the last 48 months for self-employed persons) must register at an employment office, and be capable of and available for work. Unemployment must be involuntary.

Unemployment social benefit (means tested): Must have at least 180 days of contributions in the last 12 months before unemployment and be ineligible for or have exhausted unemployment benefits. The insured must register at an employment office and must be capable of and available for work. Unemployment must be involuntary.

Means test: Total household assets (bank accounts, stocks, investment funds, etc.) may not exceed 240 times the value of the social benefit rate. Monthly household per capita income may not exceed 80% of the social benefit rate.

The social benefit rate is €419.22 a month.

Part-time unemployment benefit: The insured receives unemployment benefits and works part-time from 20% to 75% of normal weekly working time with earnings lower than the unemployment benefit.

Unemployment Benefits

Unemployment benefit: 65% of the insured's average earnings is paid for the first 180 days; reduced by 10% after 180 days. The benefit is increased by 10% if both household members (spouses or common law partners) are receiving unemployment benefits and have dependent children.

Average earnings are the insured's earnings in the 12 months prior to the two months before the month unemployment began.

For self-employed persons: 65% of the reference earnings (based on earnings from one to 11 times the social benefit rate) multiplied by the percentage of the insured's level of economic dependency.

The minimum benefit is the social benefit rate.

The maximum benefit is two and a half times the social benefit rate or 75% of the net amount of the reference earnings used for the calculation of the unemployment benefit (for self-employed persons).

The net amount of the reference earnings used for the calculation of the unemployment benefit for self-employed persons is the monthly income minus social security contributions and income tax.

The social benefit rate is €419.22 a month.

The duration of benefits depends on the insured's age and the number of months with registered earnings since the last period of unemployment. For insured persons up to age 29, up to 330 days (30 extra days for every five years of registered earnings); if aged 30 to 39, up to 420 days (30 extra days for every five years of registered earnings during the last 20 years); if aged 40 to 49, up to 540 days (45 extra days for every five years of registered earnings during the last 20 years); if aged 50 or older, 540 days (60 extra days for every five years of registered earnings during last 20 years). The minimum period is 150 days.

If the insured had 450 days of contributions by March 31, 2012, the benefit is paid for a period ranging from 270 to 900 days for the first period of unemployment.

See Old-Age, Disability and Survivors for early old-age pension for long-term unemployed persons.

Social assistance unemployment benefit: 80% of the social benefit rate is paid to an unmarried person; 100% with dependents.

The social benefit rate is €419.22 a month.

The duration of benefits depends on the beneficiary's age when contributory unemployment benefits cease. If aged 40 and over, the duration is the same as the contributory unemployment benefit; if under age 40, the duration is half of the contributory unemployment benefit.

The social assistance unemployment benefit may be renewed until early pensionable age provided the insured became unemployed at age 52 or over and continues to qualify.

Part-time unemployment benefit: The benefit is the difference between 135% of the unemployment benefit and the value of earnings from part-time work. The benefit is paid for the same duration as the contributory unemployment benefit.

Administrative Organization

Ministry of Labor, Solidarity, and Social Security (http://www.portugal.gov.pt/pt/ministerios/mtsss.aspx) provides general supervision through the State Secretariat for Solidarity and Social Security and the State Secretary for Employment.

Social Security Institute (http://www.seg-social.pt) administers the program.

Employment centers review claimants' eligibility.

Family Allowances

Regulatory Framework

First law: 1942.

Current laws: 1997, 1999, 2003, (family benefits); 2007 (social security); and 2010 (means test).

Type of program: Social insurance and social assistance system.

Coverage

Portuguese citizens, foreign citizens, refugees, and noncitizens residents of Portugal.

Source of Funds

Insured person: None.

Self-employed person: None.

Employer: None.

Government: The total cost.

Qualifying Conditions

Family allowances (social assistance, means tested): The child must be younger than age 16 (age 24 if a student), without gainful activity.

Means test: The claimant and household members cannot have assets (bank accounts, stocks, investment funds, etc.) worth more than 240 times the value of the social benefit rate or an annual reference income exceeding €8,803.62.

The social benefit rate is €419.22 a month.

Disabled child special supplement: Paid for each child with a disability younger than age 24.

Constant-attendance supplement: Paid for each child with a disability who requires the constant attendance of others to perform daily functions.

Education supplement: Paid for children aged 6 to 16 in a low-income household to help with school fees.

Education allowance: Paid to secondary school students, younger than age 18, from households with total annual income under €5,869.08.

Disability supplement (bonificação por deficiência, social insurance and social assistance): Family allowance supplement paid to financially dependent family members younger than age 24 with an assessed physical or mental disability.

Under the social insurance system, 12 months of contributions in the last 14 months are required. The disabled dependent must not work under the compulsory social insurance system.

Under the social assistance system, the disabled dependent must not work under the compulsory social insurance system and the monthly family income is less than 1.5 times the social benefit rate or the individual monthly income is up to €125.77.

The social benefit rate is €419.22 a month.

Special education allowance: Paid to children with a disability younger than age 24 attending special education or private school, kindergarten, or receiving support from a specialized institution.

Lifelong allowance (subsídio mensal vitalício, social insurance): Paid to financially dependent family members aged 24 or older with an assessed physical or mental disability. Must have 12 months of contributions in the last 14 months.

Constant-attendance supplement: Paid for each financially dependent family member with an assessed physical or mental disability who requires the constant attendance of others to perform daily functions.

Minimum income (rendimiento social de insercao, social assistance, means tested): Paid to needy families.

Means test: Total household assets (bank accounts, stocks, investment funds, etc.) must not exceed 60 times the social benefit rate. Monthly household per capita income must not exceed €178.15 for single households; additional adult, €89.07; additional dependent child, €53.44.

The social benefit rate is €419.22 a month.

Family Allowance Benefits

Family allowances (social assistance, means tested): The allowance is based on the reference family income and the child's age. The reference family income is determined by dividing the total income of all working family members by the number of eligible children plus one. Reference income is grouped into three levels indexed to the social benefit rate.

The social benefit rate is €419.22 a month.

If the reference family income is up to 50% of the social benefit rate multiplied by 14, €145.69 a month is paid for each child up to 12 months of age, from €36.42 to €109.26 a month is paid for each child between 12 and 36 months (depending on the number of children) and €36.42 a month for each child older than 36 months.

Eligible children aged 6 to 16 receive an additional payment each September toward education fees.

If the reference family income is 51% to 100% of the social benefit rate multiplied by 14, €119.66 a month is paid for each child up to 12 months of age; from €29.92 to €89.75 a month for each child between 12 and 36 months (depending on the number of children); and €29.92 a month for each child older than 36 months. If the reference family income is 101% to 150% of the social benefit rate multiplied by 14, €94.14 a month is paid for each child up to 12 months of age; from €27.07 to €81.21 a month for each child between 12 and 36 months (depending on the number of children); and €26.54 a month for each child older than 36 months.

Disabled child special supplement: €59.48 a month is paid for a child younger than age 14; €86.62 if ages 14 to 18; €115.96 if ages 18 to 24. The amount of the supplement increases by 20% for beneficiaries living in single-parent families.

Constant-attendance supplement: €88.37 a month is paid if the child has a disability and requires the constant attendance of others to perform daily functions.

Education supplement: An additional family allowance benefit is paid in September.

Education allowance: If the reference family income is 51% to 100% of the social benefit rate times 14, €36.42 a month is paid (€49.17 to single-parent families); from 101% to 150% of the social benefit rate times 14, €29.92 a month is paid (€40.39 to single-parent families).

Disability supplement (bonificacao por deficiencia, social insurance and social assistance): €59.48 a month is paid up to age 13 (€80.30 for single-parent family); €86.82 a month is paid from age 14 to 17 (€116.94 for single-parent family); €115.96 a month is paid up from age 18 to 24 (€156.55 for single-parent family).

Special education allowance: A variable amount is paid according to household income.

Lifelong allowance (subsidio mensal vitalicio, social insurance): €176.76 a month is paid.

Solidarity supplement: €17.54 a month is paid for a family member younger than age 70; €35.06 if aged 70 or older.

Constant-attendance supplement: €88.37 a month is paid.

Minimum income (rendimiento social de insercao, social assistance, means tested): The difference between the household income per capita and the minimum income is paid for 12 months.

The minimum income is €178.15.

Administrative Organization

Ministry of Labor, Solidarity, and Social Security (http://www.portugal.gov.pt/pt/ministerios/mtsss.aspx) provides general supervision through the State Secretariat for Solidarity and Social Security.

Social Security Institute (http://www.seg-social.pt) administers the program.