Portuguese Social Security system had a surplus of 4.4 billion euros until July

Portugal's Segurança Social system posted a budget surplus of 4.416 billion euros in the first seven months of 2026. According to the data of the Parliament's budget control unit UTAO, this figure corresponds to a 37.4 percent increase compared to the same period last year and is the highest level recorded for the January-July period in the last decade.

The result was both the strong increase in social security premiums and the slower increase in pension and social aid expenditures than anticipated in the state budget.

Premium income increased by 7.3 percent

Social security contributions to Segurança Social increased by 7.3 percent in the first seven months of the year compared to the same period last year.

UTAO associates this increase with the improvement in employment and wages.

According to INE data, while the employed population increased by 2.9 percent on an annual basis in the second quarter of 2026, the average monthly gross wage per employee increased by 5.1 percent in nominal terms.

As more people work and wages increase, the amount of premiums entering the Segurança Social system also increases.

Spending increased slower than expected in the budget

Segurança Social's effective expenditures increased by 4.4 percent in the January-July period.

In the 2026 state budget, an expenditure increase of approximately 9 percent was predicted for the year overall.

Pension expenses increased by 4.3 percent in the first seven months. The annual reference in OE2026 was 6.1 percent.

Social benefits other than retirement While the increase is 5.8 percent, the budget predicts a 12.2 percent increase for the year overall.

The number of people receiving unemployment benefits decreased

Unemployment aid spending rose 2.2 percent through July.

However, the number of people receiving aid decreased by 9,416 people, or 5.3 percent, in the same period.

On the other hand, some social aid items grew above budget expectations. Prestação Social para a Inclusão expenditures increased by 16.4 percent, and sickness benefit expenditures increased by 9.5 percent.

Does this figure mean “the retirement system problem has been solved”?

No.

The figure of 4.4 billion euros shows the cash/budget realization of a certain period. Sustainability of the long-term pension system; It depends on much longer-term variables such as population aging, the working-retired ratio, wages, migration, economic growth and future pension obligations.

UTAO also calculates the adjusted balance of Segurança Social at approximately 4.370 billion euros, when factors affecting comparability are extracted.

Therefore, the result indicates a strong budget performance for the first seven months of 2026; but it is not the sole answer to the long-term system debate.

Resources

ECO — Luís Leitão — 16 September 2026

https://eco.sapo.pt/2026/09/16/excedente-da-seguranca-social-cresce-374-ate-julho/