LUSA 11/08/2025

Lusa - Business News - Portugal: Government expects to save €40M in 2026 with Social Security control

Lisbon, Nov. 7, 2025 (Lusa) - The government expects to save €40 million in 2026 by strengthening mechanisms to control fraud and undue payments in Social Security and implementing the "First People" programme, the labour minister said on Friday.

In her opening speech at the hearing on the specialised discussion of the proposed State Budget for 2026 (OE2026), the minister of labour, solidarity and social security said that the government would “continue to strengthen the control mechanisms that prevent individual Social Security payments and prevent fraud” in the system, stressing that this measure “together with the 'First People” programme should allow for very significant savings for the public purse over the next few years'.

'In 2026 alone, we estimate a saving of €40 million with the combination of these two measures,' said Rosário Palma Ramalho.

On 24 October, during the general debate on the State Budget for 2026, the minister said that the implementation of this programme had enabled more than 2 million people to be taken away from face-to-face Social Security services.

According to the minister, among the measures that will be implemented under the “First People” programme, with a view to "significantly improving the relationship between Social Security and people and companies", is "simplifying the declaration of remuneration to Social Security", a measure that will go ahead in January next year, to reduce "the context costs for companies".

The “First People” programme aims to modernise and digitalise Social Security services and, among other measures, allows payments to be made via virtual IBAN, MB Way or the app.

When asked by the MP and leader of the Liberal Initiative about measures to encourage savings accounts, she said that, during the first round of questions, the "Ministry of Finance will study this matter next year", with a view to "presenting a proposal for a law that would frame savings accounts, possibly with tax benefits".

"As it's not specifically my area, I can't say how the measure will be modelled at the moment," she stressed, adding, however, that [the government] is not “unaware” of the "very audible and recent communications" from the European Commission on the matter.

She also pointed out that the working group studying the sustainability of Social Security should also "present proposals to extend the subscription to complementary schemes, to capitalisation schemes".

JMF/ADB // ADB.

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