Digital Transformation of Social Security: The New Communication Model

Digital Transformation of Social Security: The New Communication Model

As part of the digital transformation program of the Social Security system – aimed at simplifying and optimizing communications between contributing entities, beneficiaries, and Social Security services – Decree-Law No. 127/2025 was published on December 9, 2025, introducing significant amendments to the Code of Contribution Schemes of the Social Security Welfare System.

The corresponding regulatory framework was likewise amended by Regulatory Decree No. 7/2025.

The changes introduced by these instruments pursue the following main objectives:

i) Strengthening the quality and management of information communicated to Social Security, particularly that required for identifying workers and determining their respective remuneration, thereby contributing to the prevention of fraud and contribution evasion;

ii) Simplifying procedures and reducing costs for contributing entities throughout the employment relationship.

The new contribution communication model is based on a set of structural measures, notably the following:

a) Employers are required to communicate the admission of workers to the competent Social Security institution, via the Social Security Direct service, no later than the start of the employment contract;

b) In case of failure to communicate admission, it is presumed that the worker began duties on the first day of the third month prior to the non-compliance;

c) Employers must communicate to Social Security, in particular, the worker’s Social Security Identification Number (NISS), the type of employment contract, as well as the amount of permanent remuneration and any changes thereto;

d) The deadline for payment of contributions and quotas is extended, now to be made monthly, based on the data provided by Social Security between the 1st and 25th of the month following the one to which they refer;

e) An automatic correction mechanism is created, allowing Social Security to supply or correct, automatically, the absence or insufficiency of remuneration communications, using the data available to it;

f) In terms of sanctions, it is established that:

i) Failure to declare remuneration relating to a worker constitutes a very serious offense;

ii) Failure to correct values that form part of the contributory base constitutes a minor offense when regularized within 60 days after the legal deadline (i.e., by the 20th day of the month following the one concerned), or a serious offense in all other cases.

The new contribution communication model enters into force on January 1, 2026, with a transitional period during 2026, during which employers may join the new regime at any time, upon request and confirmation by Social Security services. The application of the new model becomes mandatory for all employers as of January 1, 2027.

Maria Mendonça | Carmo Pereira Coutinho Labor Law