According to a Bank of Portugal analysis based on Social Security microdata, released ahead of its inclusion in the upcoming Economic Bulletin, this decline is attributed to wage growth outpacing adjustments to benefit caps, which are calculated based on the Social Support Index (IAS).

In absolute terms, the average benefit amount rose by 3.4% annually in nominal terms (1.3% in real terms), reaching €700 in 2025.

Labour market

The study also highlights shifts in the profile of beneficiaries and in the labour market.

In 2025, approximately 40% of new benefit recipients were workers earning up to €880 (in a year when the national minimum wage stood at €870).

By sector, the manufacturing industry and administrative activities led in support grants (both accounting for about 17%), followed by the trade sector (14.2%); notable trends included growth in the accommodation and food service sectors and a decline in construction and public administration compared to 2015.

Demographically, the share of workers aged 50 or older (21% to 26%) and women (51.6% to 53.4%) increased, as did foreign citizens, whose share of new entrants rose from 2.2% in 2015 to 26.6% in 2025.

The document also notes that 60% of beneficiaries who stopped receiving the benefit in 2024 returned to work within one month.

However, this transition often involved a loss of wages or a change in sector.

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