Social Security Reforms: New Reporting Model and Key Updates for 2026

At a glance

• New contributory reporting model effective 1 January 2026, mandatory from 2027.
• Employers must report hiring, contract changes, and remuneration details through digital platforms.
• Guaranteed Minimum Monthly Wage for 2026 set at €920.00.
• Statutory retirement age for 2027 fixed at 66 years and 11 months.

Digital Transformation of Social Security

The Portuguese Social Security system is undergoing a major digital transformation. Two legislative instruments—Decree-Law No. 127/2025 and Regulatory Decree No. 7/2025—introduce a new contributory reporting model designed to streamline communication between employers and Social Security.

Employers must notify Social Security of all new hires before the employment contract begins, using the “Segurança Social Direta” platform. The declaration must include the worker’s Social Security Identification Number (NISS), contract type, and permanent remuneration. Failure to comply triggers presumptions about the employment start date and continued contribution obligations. Similarly, any termination, suspension, or amendment of employment contracts must be reported by the 10th day of the following month. Until reported, the employment relationship is presumed active, and contributions remain due.

Monthly remuneration records will reference 30 days per employer, regardless of actual days worked. Employers must declare all amounts owed, including adjustments for periods of inactivity. The system calculates contributions based on a formula tied to base remuneration and days worked. Employers generally confirm Social Security’s automatically calculated amounts unless changes occur. Confirmation is due by the 20th of the following month (with an exception for July). Payments are made monthly, based on Social Security data available between the 1st and 25th of the following month. Failure to declare remuneration constitutes a very serious offence, while late corrections can escalate from minor to serious offences depending on timing. Employers may correct or supplement declarations within two months, with limited options up to four months later.

The new model applies from 1 January 2026, with a transition period until 31 December 2026. It becomes mandatory for all employers on 1 January 2027.

Minimum Wage: Decree-Law No. 139/2025 sets the guaranteed minimum monthly wage for 2026 at €920.00, impacting pay levels and contribution bases.

Retirement Age: Ordinance No. 476/2025/1 establishes the statutory retirement age for 2027 at 66 years and 11 months.