Portugal to Merge 13 Welfare Payments into a Single Social Benefit

The Portuguese government has approved a draft law to create the Single Social Benefit (PSU), which will consolidate 13 non‑contributory welfare payments—including unemployment aid, social and disability pensions, orphan and survivor benefits, and various maternity and adoption subsidies—into one streamlined allowance. The measure, slated for parliamentary debate starting 12 June, aims to simplify access, reduce bureaucracy, and curb fraud.

Eligibility will be limited to residents aged 18 or older, with non‑EU citizens required to have at least one year of residence. Benefits will be calculated on total household income, taking into account earnings, property, capital and other social aid. Recipients must register with an employment centre, accept suitable job offers or training, and perform unpaid "social work" for public or non‑profit organisations.

Finance Minister Joaquim Miranda Sarmento described the reform as "an incentive to work," arguing that the current system discourages labour market entry and contributes to Portugal’s labour shortage. Prime Minister Luís Montenegro highlighted the dual goal of simplifying the system and preventing misuse. Opposition parties, particularly the PS, have called for clearer criteria, benefit levels and impact assessments, warning they may vote against the proposal.