The Portuguese Social Security System (Self-employed)
A. Organization
Self-employed individuals performing non-salaried professional activities are mandatorily covered under the general social security system for self-employed workers (regime geral de Segurança Social dos trabalhadores independentes) after 12 months of activity, regardless of their income*. They may request social security coverage before this deadline (in this case, coverage takes effect at the beginning of the month following the request).
This system provides coverage against the following risks:
- illness (doença)
- maternity/paternity (parentalidade)
- occupational diseases (doenças profissionais)
- disability (invalidez)
- old age (velhice)
- death (morte)
- unemployment (desemprego): only for certain categories of self-employed workers, for example, economically dependent workers or founders of individual commercial and industrial enterprises.
Self-employed workers with low incomes may be eligible for family benefits granted under the citizenship social protection system.
Finally, self-employed workers are also mandatorily covered against occupational accidents and are required to obtain insurance from a private insurance company.
- Before 2019, only workers whose income exceeded a certain threshold were covered.
Social protection in Portugal consists of 3 distinct systems:
- The insurance system, which includes the general social security system, financed by social contributions, providing workers with benefits in case of illness, maternity, disability, old age, death, unemployment, work accidents, and occupational diseases;
- The citizenship social protection system comprising social action, solidarity, and family protection subsystems. This system, funded by the State budget, ensures basic rights for citizens in precarious situations and supports families as well as disabled persons or those requiring long-term care;
- The complementary system of voluntary individual enrollment offering a public capitalization-based scheme providing supplementary benefits to the general scheme, collective complementary schemes (e.g., occupational schemes), and individual complementary schemes (notably retirement savings plans or life insurance).
Under the supervision of the Ministry of Labor, Solidarity and Social Security (Ministério do Trabalho, da Solidariedade e Segurança Social), the management of the general scheme and social action benefits is handled by the Social Security Institute (Instituto da Segurança Social, I.P.). Social security funding is managed by the Financial Management Institute of Social Security (Instituto de Gestão Financeira da Segurança Social, I.P.).
Mandatory workplace accident insurance is managed by private insurance companies under the supervision of the Ministry of Finance (Ministério das Finanças).
Healthcare services are provided by the National Health Service (Serviço Nacional de Saúde) and fall under the responsibility of the Ministry of Health (Ministério da Saúde).
Contributions
Disability, old age and survivors’ insurance, workplace accidents and occupational diseases, as well as part of sickness-maternity insurance (cash benefits) and unemployment are funded through social contributions. Benefits in kind for sickness-maternity insurance and family benefits are funded through taxes.
B. Sickness & Maternity
Regarding healthcare, health insurance covers all persons residing in Portugal.
To receive daily sickness benefits or maternity/paternity benefits, one must be insured through professional activity.
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Sickness
Benefits in kind (healthcare)
Doctors The insured person has free choice of general practitioner within the National Health Service*. Access to specialists is determined by the general practitioner.
- Healthcare professionals in the National Health Service – Serviço Nacional de Saúde (SNS) – are civil servants attached to the Ministry of Health.
Patients are required to pay a co-payment whose amount depends on the type of medical consultation. In 2020, this is €4.50 for a general practitioner consultation (€9 for a home visit) and €7 for a specialist visit. Certain categories of patients are exempt (pregnant women, children under 18, people with low incomes, etc.).
Certain categories of patients are exempt from co-payments: pregnant women, children under 18, people with low incomes, or those with at least 60% work incapacity. Consultations related to certain conditions (diabetes, cancer, mental health, HIV, chronic pain, etc.) are also exempt from co-payments. Additionally, the co-payment is waived when the healthcare center consultation follows a request to the SNS call center.
In Portugal, the majority of co-payments (taxas moderadoras) charged to insured persons were gradually eliminated between 2020 and June 2022. However, a fixed contribution is still required from insured persons for emergency services (€14/16/18 depending on the service, and up to €40 additional for examinations). This co-payment should not apply if the emergency visit occurs following an SNS prescription* or if it is followed by hospitalization.
A financial contribution from insured persons is also maintained for medication purchases.
- Following a consultation at a health center or a call to 808 24 24 24 (SNS 24 line).
Hospitalization
Except in emergencies, hospitalization must be prescribed by a general practitioner. It is free for insured persons within a National Health Service facility.
For emergency consultations, the patient’s contribution is €14. This co-payment is waived when the emergency visit occurs on recommendation from a doctor or the SNS call center.
Outpatient consultations generally require patient contribution. However, the co-payment may be waived in certain cases (particularly for the first specialist consultation when prescribed).
Dental Care
- “Dental voucher” system (cheque-dentista) allowing access to care, provided that patients consult a practitioner participating in the program.
The insured person has free choice of dentist within the National Health Service system. Certain treatments are covered for:
- children up to age 16 (18 in certain cases);
- pregnant women monitored under the National Health Service;
- beneficiaries of the elderly solidarity supplement;
- AIDS patients.
Dental prostheses are partially covered by health insurance for elderly people in difficult economic situations.
Pharmaceutical Products
Coverage of medications depends on the patient’s illness and varies according to medication category:
- Category A: 90%
- Category B: 69%
- Category C: 37%
- Category D: 15%
Note: The coverage rate is higher for pensioners who receive an annual pension less than 14 times the guaranteed monthly minimum remuneration (Retribuição Mínima Mensal Garantida) from the previous year or 14 times the current IAS** value when the latter is higher than the minimum remuneration.
Certain pharmaceutical products, intended to treat specific conditions or defined patient groups, are either fully covered by the State or partially covered, according to special provisions.
- Namely 95% for Category A medications, or 84%, 52%, or 30% for medications in categories B, C, and D.
** The IAS (indexante dos apoios sociais) is an indexing mechanism for certain social benefits. IAS in 2020: €438.81.
Cash Benefits (Sickness Benefits)
Conditions: To receive daily sickness benefits (subsídio de doença), self-employed workers must demonstrate at least 6 months of membership with registered earnings. Contributions for the quarter preceding work stoppage must have been paid.
Duration of Payment Daily sickness benefits are provided to self-employed workers starting from the 11th day of incapacity. In cases of tuberculosis, hospitalization, outpatient surgery, or illness beginning during parental leave and extending beyond it, benefits are paid from the first day of incapacity.
Benefits guide is available regarding sickness benefits.
Benefits may be granted to self-employed workers for up to 365 days (indefinite duration in cases of tuberculosis).
Amount When work incapacity lasts less than 91 days, a 5% increase is applied if the reference income does not exceed €500 or if the insured person has at least 3 dependent children for whom family allowance is paid (or children who are eligible for the disabled child supplement).
The daily benefit amount depends on the duration of incapacity:
- Up to 30 days: 55% of reference income
- From 31 to 90 days: 60% of reference income
- Between 91 and 365 days: 70% of reference income
The income taken into account is that of the 6 months prior to the 2 months preceding work stoppage. The average income for this period must be divided by 180 to obtain a daily amount.
- In cases of tuberculosis, the daily benefit amount represents 80% of reference income (100% if there are more than 2 dependents).
The minimum monthly benefit amount equals 30% of the IAS*, or equals the reference income if this is lower than this amount. In 2020, unless reference income is lower, the daily benefit is at least €4.39 (approximately €131.64 per month).
- IAS in 2020: €438.81.
Competent Organizations
The district centers (os Centros Distritais) of the Social Security Institute and the competent institutions of the autonomous regions of the Azores and Madeira are responsible for providing cash benefits under sickness insurance.
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Maternity
Healthcare services provided to mothers are covered under the same conditions as regular health insurance (residency requirement in Portugal). Medical examinations and care related to maternity are not subject to co-payments.
The right to cash benefits (allowances) is available to self-employed workers who can demonstrate 6 months of membership with registered earnings, consecutive or not. Contributions for the quarter preceding work stoppage must have been paid.
Parental, Maternity, and Paternity Benefits Self-employed workers who meet the membership duration requirement can choose to receive paid parental leave of either 120 or 150 days (licença parental inicial).
Within this parental leave, the mother can take 30 days of leave before childbirth and must cease activity for 6 weeks (42 days) after childbirth (licença parental inicial exclusiva da mãe). The father is entitled to 20 days of leave to be taken within 6 weeks following the child’s birth, including 5 consecutive days immediately after birth (licença parental inicial exclusiva do pai). After this period, he can take an additional 5 optional leave days during the mother’s leave period. Parents can share the remaining days as they wish. Parental leave is extended by 30 days when both parents share it, with each taking 30 consecutive days or two periods of 15 consecutive days (after the mother’s mandatory leave).
In case of multiple births, leave is extended by 30 days per additional child.
Daily Allowance Amounts:
| Situation | Duration of Payment | Daily Allowance Amount (% of reference income*) |
|---|---|---|
| Parental Leave | 120 days | 100% |
| 150 days | 80% | |
| Shared Parental Leave | 150 days (120 + 30) | 100% |
| 180 days (150 + 30) | 83% | |
| Multiple Births | +30 days per additional child | 100% (regardless of leave duration) |
| Father’s Parental Leave | 20 days (mandatory leave) | 100% |
| 5 days (optional leave) | 100% |
- Reference income equals the total income of the 6 months before the 2 months preceding work stoppage, divided by 180. Source: Official Portuguese Social Security website
Note: The daily allowance amount cannot be less than 80% of 1/30 of the IAS (IAS in 2020: €438.81), meaning a minimum of €11.70 per day.
Child Care Allowance
For a child with a disability, chronic illness, or cancer, an allowance (subsídio para assistência a filho com deficiência, doença crónica ou doença oncológica) may be paid for up to 6 months (possible extension up to 4 years, or up to 6 years in case of cancer). Corresponding to 65% of gross reference income, the benefit cannot exceed twice the IAS (€877.62 in 2020).
Self-employed workers can request a child care allowance (subsídio para assistência a filho). This benefit may be granted to the parent who interrupts work to care for a sick child under 12 years of age (no age condition if the child is disabled or has a chronic illness). The allowance is paid for a maximum duration of 30 days per year (limited to 15 days for children aged 12 and over). As of April 1, 2020, its amount corresponds to the parent’s net income*, and cannot be less than 80% of 1/30 of the IAS (IAS in 2020: €438.81), meaning €11.70, nor less than 65% of gross reference income*.
- Reference income corresponds to the total income of the last 6 months before the 2 months preceding work stoppage, divided by 180.
Competent Organizations The centers (Centros Distritais) of the Social Security Institute and the competent institutions of the autonomous regions of the Azores and Madeira provide maternity insurance cash benefits.
C. Work Accidents and Occupational Diseases
Coverage for workplace accidents risk is provided by private insurance companies with which self-employed workers are required to register.
Work accidents are recognized as damages occurring at the workplace and during working hours or caused by professional activity, resulting in bodily injury, functional disorder, or illness that leads to reduced work capacity, earnings, or causes the worker’s death.
Occupational diseases are listed in an official register (lista das doenças profissionais). However, bodily injuries and functional disorders that are a direct consequence of the worker’s activity may also be recognized as occupational diseases even if they do not appear on this list.
In case of workplace accidents, healthcare is fully covered by private insurance companies. These companies may specify the healthcare provider. The patient does not pay any contribution.
For occupational diseases, care is provided by healthcare providers chosen by the insured person. These may be subject to reimbursement of costs advanced by the patient, or provided directly by the National Health Service (Serviço Nacional de Saúde).
Temporary Disability
In case of total temporary disability, the benefit equals 70% of reference income* for the first 12 months, and 75% from the 13th month.
In case of partial temporary disability, the benefit amount corresponds to 70% of the loss of general earning capacity.
- Reference income = gross annual remuneration. In case of workplace accidents, the reference income cannot be less than 14 times the guaranteed monthly minimum remuneration.
Permanent Disability
The pension amount depends on the extent of disability.
Three situations should be distinguished:
- In case of total permanent disability (all professions): the pension amount equals 80% of reference income, increased by 10% for each dependent family member up to 100% of reference income.
- In case of total disability for usual profession: the pension amount is between 50% and 70% of reference income, depending on remaining capacity to perform another profession.
- In case of partial permanent disability: the pension amount corresponds to 70% of estimated lost earnings.
Supplement for Third-Party Assistance (prestação suplementar para assistência de terceira pessoa): granted to recipients of a permanent disability pension due to accident or occupational illness who require third-party assistance for daily activities. The supplement amount corresponds to the remuneration paid to the person providing assistance, up to 1.1 times the IAS (IAS in 2020: €438.81).
Death
In case of the insured person’s death following a workplace accident or occupational disease, a survivor’s pension may be paid to the surviving spouse, former spouse who received alimony at the time of death, person who lived with the deceased in a marriage-like relationship, and children or parents who were dependent on the deceased.
The pension is paid to the surviving spouse, former spouse, and person who lived with the deceased under the same conditions as in the survivors’ pension insurance scheme. The orphan’s pension is for children under 18 years (22 or 25 years if studying, depending on the type of studies). The age limit may be removed in cases of disability or chronic illness affecting work capacity.
Survivor pension amounts are calculated based on the insured person’s reference income*.
The pension for surviving spouse or person who lived with the deceased equals 30% of the deceased’s annual earnings*. This increases to 40% for beneficiaries who have reached legal retirement age or have a disability or chronic illness. For former spouses, this amount cannot exceed the previously received alimony.
In 2020, the legal retirement age was 66 years and 5 months. For 2023 and 2024, it is set at 66 years and 4 months.
For orphans who have lost both parents, the pension corresponds to 40% (1 child) or 80% (2 or more children) of reference income*.
The orphan’s pension is respectively 20%, 40%, or 50% of reference income* for 1, 2, or 3 or more children.
The pension amount for dependent parents varies from 10% to 20% of reference income* per dependent person, based on the number of survivors, beneficiary’s age, and health status.
The total of pensions must not exceed 80% of the deceased’s reference income*.
Death Benefit
The death benefit (subsídio por morte) corresponds to 12 times the value of 1.1 times the IAS*. It is shared between spouse (50%) and children eligible for survivor’s pensions (50%).
- IAS in 2020: €438.81.
Funeral Expenses Allowance The funeral expenses allowance (subsídio por despesas de funeral) aims to cover burial expenses, up to 4 times the IAS*. This amount is doubled if body transport is required.
- IAS in 2020: €438.81.
D. Pensions
Self-employed workers are mandatorily covered by pension insurance which provides disability, old-age, and survivor pensions (death of the insured).
The self-employed person’s pension is calculated according to the provisions of the general scheme for employed workers, and the same eligibility conditions apply to both employees and self-employed workers.
E. Unemployment
In Portugal, the unemployment insurance system under the general social security scheme only covers employed workers. There is no voluntary insurance. However, self-employed workers may, under certain conditions, be eligible for professional activity cessation benefit (subsídio por cessação de atividade profissional) or partial professional activity cessation benefit (subsídio parcial por cessação de atividade profissional)*.
This applies to:
- self-employed workers conducting commercial or industrial activity within an individual enterprise
- owners of limited liability individual companies (EIRL)
- their spouses who regularly participate in the company’s activity
- Self-employed workers in situations of economic dependency, meaning those who perform at least 50% of their activity for a contracting entity (service contract), may potentially claim an activity cessation benefit (subsídio por cessação de atividade) or partial activity cessation benefit (subsídio parcial por cessação de atividade). For more information on these benefits, consult the Social Security Institute’s practical guide.
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Professional Activity Cessation Benefit (subsídio por cessação de atividade profissional)
Conditions
Self-employed workers covered by activity cessation benefits are liable for a global contribution of 25.2% of their reference income (instead of 21.4% for other self-employed workers).
The professional activity cessation benefit is provided subject to having contributed for at least 720 days during the 48 months preceding the cessation of activity.
The cessation of activity must be involuntary, and the individual must be registered with the employment center (centro de emprego) in their place of residence. They must also be up to date with their social security contributions.
Duration of Payment The duration of benefit payment depends on the applicant’s age and the number of months for which they have paid contributions:
| Age of Beneficiary | Number of Contribution Months | Benefit Payment Duration |
|---|---|---|
| Number of Compensated Days | Increase | |
| Under 30 years | Equal to or greater than 24 | 330 |
| 30 to 39 years | 420 | |
| 40 to 49 years | 540 | |
| 50 years or more | 540 | |
| Source: Official Portuguese Social Security website |
Amount The benefit amount corresponds to 65% of average daily income*. It is increased by 10% in the following situations:
- when both members of the couple are benefit recipients and have dependent children
- in case of single-parent families
The monthly amount received cannot exceed 2.5 times the IAS (in 2020, the benefit is therefore capped at €1,097.03 per month).
- Average daily income = sum of income during the 12 months preceding the 2nd month prior to activity cessation, divided by 360.
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Partial Professional Activity Cessation Benefit (subsídio parcial por cessação de atividade profissional)
This is a cash benefit granted to self-employed workers engaged in entrepreneurial activity and to managers or administrators of companies who have applied for the professional activity cessation benefit (subsídio por cessação de atividade profissional), or who already receive this benefit, and begin part-time employed work or self-employed activity.
Duration of Payment
The partial benefit is paid throughout the duration of the part-time activity, within the maximum duration limits set for the professional activity cessation benefit.
Amount Depending on the situation, the amount corresponds to:
- For part-time contract employees: the difference between the professional activity cessation benefit amount, increased by 35%, and the salary amount
- For those pursuing self-employed activity: the difference between the professional activity cessation benefit amount, increased by 35%, and 1/12th of the annual taxable income from the activity
- The full professional activity cessation benefit amount, when:
- The professional activity cessation benefit, increased by 35%, is less than the guaranteed minimum monthly remuneration, and
- The sum of income from employed/self-employed activity with the partial professional activity cessation benefit is also less than the guaranteed minimum monthly remuneration
F. Family Benefits
- Family Allowances Family allowances (abono de família para crianças e jovens) are paid subject to family income conditions for children residing in Portugal. The allowance amount also depends on the child’s age and household composition.
Generally, family allowances are provided until the child reaches 16 years of age. The age limit can be extended up to 24 years for students or those with disabilities, and in certain cases of infirmity, by an additional 3 years. The child must not engage in professional activity.
The family’s annual income must not exceed €15,358.35 (2020).
The amounts shown in the table below are increased by 35% for single-parent families.
Monthly Amounts in Effect as of January 1, 2020
| Annual Household Income* | Child under 36 months | Child between 36 and 72 months | Child over 72 months |
|---|---|---|---|
| Less than or equal to €3,071.67 | €149.85 | €49.95 | €37.46 |
| From €3,071.68 to €6,143.34 | €123.69 | €41.23 | €30.93 |
| From €6,143.35 to €9,215.01 | €97.31 | €32.44 | €28.00 |
| From €9,215.02 to €15,358.35 | €58.39 | €19.46 | – |
Income brackets are calculated based on multiples of the IAS (set at €438.81 in 2020) and correspond to:
- Income equal to or less than 0.5 x IAS x 14
- Income between 0.5 x IAS x 14 and 1 x IAS x 14
- Income between 1 x IAS x 14 and 1.5 x IAS x 14
- Income between 1.5 x IAS x 14 and 2.5 x IAS x 14 Source: Official Portuguese Social Security website
Families with annual income less than €3,071.67 (2020) receive an additional annual amount paid in September for any school-age child between 6 and 16 years. The amount corresponds to one monthly payment of the family allowance received for that child.
- Other Family Benefits
Prenatal Family Allowance The prenatal family allowance (abono de família pré-natal) is paid monthly starting from the month following the 13th week of pregnancy and for 6 months, or until the month of birth if the pregnancy period exceeds 40 weeks.
The amount received depends on household income (2019 amounts):
| Annual Household Income | Monthly Allowance | Single-Parent Families |
|---|---|---|
| Equal to or less than 0.5 x IAS x 14 | €149.85 | €202.30 |
| Between 0.5 x IAS x 14 and 1 x IAS x 14 | €123.69 | €166.98 |
| Between 1 x IAS x 14 and 1.5 x IAS x 14 | €97.31 | €131.37 |
| Between 1.5 x IAS x 14 and 2.5 x IAS x 14 | €58.39 | €78.83 |
| Source: Official Portuguese Social Security website |
Income Ceiling The prenatal family allowance is not granted when the annual household income exceeds €15,358.35 (2020).
Disability Supplement and Care Allowance The supplementary allowance for disabled young people (bonificação do abono de família para crianças e jovens com deficiência) is a supplement to family allowances, granted to disabled young people under 24 years of age.
Only allowances already granted as of September 30, 2019, continue to be paid until the recipients turn 24. For new applications since that date, the allowance is for children up to 10 years of age maximum.
In 2020, its monthly amount is:
- €63.01 (up to 14 years)
- €91.78 (between 14 and 18 years)
- €122.85 (from 18 years)
These amounts are increased by 35% for single-parent families.
In addition to this supplementary allowance, a care allowance (subsídio por assistência de terceira pessoa) of a fixed amount of €108.68 per month (2020) may be added when the disabled young person needs permanent assistance from a third party to perform ordinary daily life activities.
Funeral Allowance The funeral allowance (subsídio de funeral) is paid as a lump sum to the person residing in Portugal, whether a family member or not of the deceased person, who has borne the funeral expenses and is not entitled to the death grant (subsídio por morte) under the survivors’ insurance scheme.
