Portugal unemployment benefits to rise

Portugal unemployment benefits to rise
December 6, 2025

LATEST NEWS

Portugal unemployment benefits to rise

The maximum unemployment benefit is expected to increase by approximately 36 euros, reaching 1,342 euros in January, driven by the update to the Social Support Index (IAS), which will increase to around 537 euros in 2026.

Now, according to Social Security, the minimum unemployment benefit is equivalent to 1.15 times the IAS, with the minimum being 600.88 euros in 2025 and rising to 617.52 euros next year.

On the other hand, the maximum unemployment benefit corresponds to 2.5 times the IAS, which means that in January it should increase to €1,342.5, €36 more than currently.

Other benefits increases

In addition to unemployment benefits, several Social Security benefits will increase in 2026 following the update of the Social Support Index (IAS), which should rise to €537, according to calculations by the Lusa news agency.

It should be noted that the IAS serves as a reference for Social Security to calculate various social benefits, namely sickness benefit, unemployment benefit or social insertion income, as well as family allowance, access to scholarships, or the solidarity supplement for the elderly, among others.

The formula for updating the IAS takes into account the average annual growth rate of the Gross Domestic Product (GDP) over the last two years, ending in the 3rd quarter, as well as the average inflation of the last 12 months, excluding housing, referring to November.

Thus, based on data released by the National Institute of Statistics (INE), and considering that the update is rounded to the first decimal place, the IAS will increase by 2.8% in 2026 to 537.13 euros, according to Lusa’s calculations.

This represents an increase of 14.63 euros compared to the current 522.50 euros in effect.

What is IAS?

According to the law, the IAS (Social Support Index) “constitutes the determining benchmark for the establishment, calculation and updating of support and other expenses and revenues of the central administration of the State, the Autonomous Regions and local authorities, whatever their nature, provided for in legislative or regulatory acts”.

According to the rules, the value of the IAS is “updated annually with effect from January 1st of each year, taking into account the following reference indicators”:

The real growth of the gross domestic product (GDP), corresponding to the average annual growth rate of the last two years, ending in the 3rd quarter of the year prior to that to which the update refers, or in the immediately preceding quarter, if the former is not available on December 10th;

The average variation of the last 12 months of the CPI (Consumer Price Index), excluding housing, available in December of the year prior to that to which the update refers, or on November 30th, if the latter is not available on the date of signing the updating decree.

Furthermore: “For the purposes of this law, the annual variation in GDP is that which occurs between the 4th quarter of one year and the 3rd quarter of the following year.”

Share this post:

POLL

Who Will Vote For?

Other

Republican

Democrat

RECENT NEWS

Europeans choosing Portugal for New Year

Europeans choosing Portugal for New Year

Tech Care - The Portugal News

Tech Care – The Portugal News

Portugal with highest forest growth in EU

Portugal with highest forest growth in EU

Dynamic Country URL Go to Country Info Page