Social Security released more than €1 billion in social benefits in 2020, reflecting the growth in pension values and the number of retirees who live abroad or who have also paid in other European countries with which there is harmonization of social security systems. The transfer of amounts related to parental leave and other benefits, such as family allowances, decreased.
The latest statistics on the coordination of social security systems within the European Free Trade Association (EFTA) space, published last week by the European Union’s Directorate-General for Employment, Social Affairs and Inclusion, show that total social security in the context of the mobility of workers and pensioners amounted to 1.03 million euros in the year of the pandemic, an increase of 43 1 million euros, 4% more than the previous year.
Of the total expenditure, 85% refers to pensions of former immigrants or other people who have paid in Portugal, but also in one of the remaining 31 countries that make up the space for recognition of social protection rights. In 2020, there were still 28 in the European Union (including the United Kingdom), Switzerland, Iceland, Norway and Liechtenstein.
In this case, there were 2,84,894 beneficiaries, 2.4% more than the previous year, and also the equivalent of one in ten Portuguese retirees (9.8% of the total). They received 881.6 million euros from social security. In addition to the number of retirees, the average annual amount paid increased by 3,095 euros (3,047 euros in 2019). This value only reflects the functional time spent in Portugal.
Also, €142.9 million was paid to retirees living abroad. In fact, 64,056 beneficiaries, just 29 more than the previous year. They make up 2.2% of the total number of retirees and in 2020 they have on average a higher annual amount. It amounted to 2,232 euros, up from 2,103 euros in 2019.
Exports of benefits related to parental rights amounted to 436.6 thousand euros, 19% less than about 539 thousand euros paid in the previous year. Other benefits, such as a family allowance, disability or special education allowance, accounted for an expense of €8.2 million, 8% less than in 2019.
60% decrease in mobility
The report notes that despite the pandemic, no reduction in pensions or family benefits was observed in the EFTA group. But the restrictions on movement caused a significant decrease in the numbers of recruited workers and unemployed beneficiaries who moved to another country and who obtained health care abroad.
In 2020, the number of those who pay cash in Portugal who work here and in other countries (for example, truck drivers) fell by 60%, with much less than 10,000 social protection recognition documents issued to these workers. This was the second largest decrease in mobility in 32 countries, surpassed only in France (a drop of more than 80%).
There were also fewer unemployment benefits recipients looking for work abroad. Portugal issued just 350 licenses for this purpose, compared to 517 the year before.
On the contrary, the recognition of periods when unemployment benefits were prohibited has increased. Social Security issued 497 documents, mostly to Spain and France. In 2019, 447 people were sent, mostly to Bulgaria and Spain.
On the other hand, access to health care for dispatched workers remained virtually unchanged, while the total number of documents issued to identify subscription periods decreased significantly. There were 60,832 documents (77,389 in 2019).
