Social Security surplus hits highest mark in a decade

Portugal records €4.4 billion surplus through July, up 37.4 percent from the same period in 2025.

By Sidsel Senius , in News · 16 Sep 2026, 17:03 · 2 Comments

Social Security closed the first seven months of the year with a surplus of €4,416 million, ECO News reports.

This marks the highest figure for this period of the year within the last decade, and the balance recorded up to July translates into an increase of €1,201 million compared to the same period in 2025.

The result, which was revealed in the most recent budget execution report from the Budgetary Support Technical Unit (UTAO), represents a growth of 37.4% compared to the same period in 2025.

Contributions support surplus

The Social Security surplus was particularly “supported by the growth in contributions (7.3%) and the containment of expenditure on pensions and benefits (4.4% vs. 9.0% projected),” the report reveals.

According to INE data cited by UTAO, the employed population increased by 2.9% in the second quarter, and the average gross monthly remuneration per worker rose by 5.1% in nominal terms, ECO News reports.

Benefit spending remains below projections

In the analysis by category, “pension expenditure increased by 4.3%, below the benchmark of 6.1% foreseen in the 2026 Budget”, while “expenditure on social benefits (excluding pensions) grew by 5.8%, below the increase foreseen for the whole of 2026 (12.2%).”

Unemployment benefits rose by 2.2% through July, remaining below the estimated annual increase of 3.1%. The number of beneficiaries fell by 9,416 people, or 5.3%, reflecting the downward trend in unemployment recorded since the beginning of the year.

The most notable increases were in the Social Inclusion Benefit and the Sickness Benefit, respectively, at 16.4% and 9.5%.

After accounting for factors affecting comparisons between 2025 and 2026, the overall Social Security balance stands at €4.37 billion, below the €6.339 billion projected in the 2026 State Budget, according to UTAO.

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Their surplus after surplus means they are not paying due social assistance subsidies to the people most needing them and when they the amount is not even enough for two essencial baskets of food. Someone needs to immediately intervene in this mafia like public entity. They are only preoccupied on paying the absurd and shameful old age pensions to already very wealthy old people. Wake up Portugal, demand what is right by yours and complain to the regulatory and audit entities. I am already doing my part.

By Diogo F. from Madeira on 17 Sep 2026, 02:24

The surplus is due to a healthy economy, with rising employment, lower unemployment and good wage growth, all boosting contributions and limiting payments. A lesson for other countries running persistent deficits.
A €4.4 bn surplus also isn't negligible, it's around 1.5% of annual GDP, and in only the first 7 months of the year. That's a remarkable achievement.
Portugal is a lesson for other countries (UK, France) that keep spending and borrowing beyond their means, effectively kicking the can down the road and burdening taxpayers with high interest payments (8% of UK government spending is on debt interest payments alone), and future generations with high and punishing debt burdens.
Perhaps Portugal's experience in the sovereign debt crisis of the early 2010s caused it to never want to return to irresponible and profligate spending.

By Billy Bissett from Porto on 17 Sep 2026, 11:12