Portugal introduces Prestação Social Única to merge social benefits

Portugal is implementing a reform to its social security system through the creation of the Prestação Social Única (PSU), established by Decree-Law no. 166/2026. The new benefit integrates 13 non-contributory benefits into a single monthly payment, aiming to simplify access and administration.

The reform, which aligns with commitments made under the Recovery and Resilience Plan (PRR), will only take effect on December 31, 2026. Until then, current benefits will continue to be paid under the existing system. The PSU will replace the Rendimento Social de Inserção and incorporate the social old-age pension.

A transitional regime has been established to ensure that current beneficiaries do not lose money; those receiving existing benefits will maintain their current value for the duration of their current attribution period. No new applications are required for those transitioning. However, new applicants after the system's launch will be subject to the new rules and may receive different amounts. The reference value is set at 268.60 euros, which is half of the 2026 IAS. Certain benefits, such as family allowances, the Solidarity Supplement for the Elderly, and the Social Inclusion Benefit, remain outside the PSU framework.