10.10.100 Portugal Glossary

Introduction

This section contains definitions of terms applicable to the Agreement with Portugal.

Benefit

Benefit, for Australia, means a pension, benefit or allowance payable under Australian social security legislation as specified in Article 2 of the Agreement. It also includes any additional amount or increase that is payable to a person who qualifies for that increase. RA, PhA, TAL and RAA are payable to people inside Australia, but are subject to the portability restrictions of the SSAct for people outside Australia.

Bereavement Allowance

Under the Agreement with Portugal, bereavement allowance can be paid only to widowed persons (male or female) who stop being partnered persons because of the death of their partner. It does not include someone who has a new partner.

Carer Payment

Under the Agreement, qualification for CP is restricted to a partner who cares for a severely disabled partner who is in receipt of an age or DSP and residing in Portugal. CP is not payable to a person who has never been an Australian resident.

Disability Support Pension

When the former Agreement was negotiated, DSP was known as 'invalid pension'. That Agreement therefore covers DSP for both the severely disabled and the non-severely disabled. The current Agreement restricts DSP to severely disabled persons.

Legislation

Legislation means, for Australia, the social security law applying to Age, DSP, WP, CP, PPS, BVA and additional child amounts. It also applies, where relevant, to the Superannuation Guarantee (Administration) Act 1992, the Superannuation Guarantee Charge Act 1992 and the Superannuation (Administration) Regulations.

Parenting Payment (Single)

Under the Agreement with Portugal, PPS can be paid to a woman with dependent children who is a legal widow or a dependent female (i.e. a woman who was a member of a couple for 3 years before her partner died and was wholly or mainly financially maintained by him).

Portugal

Portugal is the Republic of Portugal. It comprises the territory of Portugal on the European continent and the archipelagos of the Azores and Madeira.

Portuguese Contributory Payments

The following are Portuguese contributory payments:

  • Sickness benefit - subsídio de doença,
  • Maternity allowance - subsídio de maternidade,
  • Paternity allowance - subsídio de paternidade,
  • Adoption allowance - subsídio por adopção,
  • Parental leave allowance - subsídio por licença parental,
  • Allowance for the care of sick underage or handicapped children - subsídio para assistência a deficientes profundos e doentes crónicos,
  • Allowance for specific risks - subsídio por riscos específicos,
  • Grand-parents' specific leave allowance - subsídio por faltas especiais dos avós,
  • Pregnancy allowance - subsídio de gravidez,
  • Family allowance for children and young people - subsídio familiar a crianças e jovens,
  • Increase to the family allowance due to handicap - bonificação, por deficiência, do subsídio familiar a çriancas e jovens,
  • Special education allowance - subsídio pela frequência de estabelecimento de ensino especial,
  • Monthly lifelong benefit - subsídio mensal vitalício,
  • Constant attendance allowance - subsídio por assistência de terceira pessoa,
  • Funeral grant - subsídio por morte,
  • Invalidity pension - pensão de invalidez,
  • Old age pension - pensão de velhice,
  • Social supplement - complemento social,
  • Allowance for care - complemento por dependência,
  • Survivors' pension - pensão de sobrevivência,
  • Death grant - subsídio por morte, and
  • Unemployment benefit - subsídio de desemprego.

Also under the contributory scheme is the 'Regime Rural'. This payment applies to a closed group of former pensioners of the special social security scheme for agricultural workers and working beneficiaries covered by that scheme who on 1 January 1987 had broken up their record of contributions.

Portuguese Contributory Social Security System

Under Portuguese law, every employee and self-employed person (with income over a specified amount) over the age of 16 years must pay social insurance contributions under the General Scheme or one of the Special Schemes. This is usually 11% of salary for employees. The employer also makes a contribution of 23.75% to an employee's social insurance payments. Contribution rates for agricultural and self-employed workers are calculated at a different percentage. People who are getting disability, unemployment or maternity benefits, or invalidity or retirement pensions are credited with Portugese contributions.

Portuguese Death Grant
Portuguese death grant (a single payment) is payable on the death of an insured person. No minimum number of contributions are required.
Portuguese Family Allowance for Children and Young People of Pensioners

Portuguese family allowance for pensioners is available for dependent children up to school leaving age (14) or up to age 25 if still in full-time education but it is subject to an income test on the student's earnings. Rates of the allowance depend on the age of the dependants. Under the Agreement, this payment is available to Australian residents and does not preclude the payment of Australian family payment.

Portuguese Funeral Grant

A one-time payment to assist with the funeral expenses of an insured person or the dependant of an insured person.

Portuguese Invalidity Pension

Portuguese invalidity pension is payable to people who have already been receiving sickness benefit for 1,095 days and who are permanently incapable of work. There is a minimum requirement of 60 months of paid or credited contributions or, under the Agreement with Australia, an equivalent period made up of Portuguese contributions of one year combined with Australian residence between age 16 and Portuguese age pension age.

Non-Contributory/Portuguese Non-Contributory Benefits

Portuguese non-contributory benefits may be paid to a person who has had no affiliation with the contributory scheme. The payment is of a welfare nature and may be means tested. It cannot be paid outside Portugal. Non-contributory benefits are those of a 'carácter social' and include:

  • Family allowance for children and young people - subsídio familiar a crianças e jovens,
  • Increase to the family allowance due to handicap - bonificação, por deficiência, do subsídio familiar a çriancas e jovens,
  • Special education allowance - subsídio pela frequência de estabelecimento de ensino especial,
  • Constant attendance allowance - subsídio por assistência de terceira pessoa,
  • Invalidity pension - pensão de invalidez,
  • Old age pension - pensão de velhice,
  • Widowhood pension - pensão de viuvez,
  • Orphan's pension - pensão de orfandade,
  • Allowance for care - complemento por dependência,
  • Unemployment social benefit - subsídio social de desemprego, and
  • Minimum income cash benefit - prestação de rendimento minimo.
Portuguese Old Age Pension

Portuguese old age pension is paid to men and women at age 65. Claimants must have paid (or have credited) at least 15 years of contributions to qualify for payment. Under the Agreement they can combine with contributions Australian working life residence between age 16 and Portuguese age pension age to meet the minimum contribution conditions, provided there is at least 12 months of actual Portuguese contributions.

Portuguese Period of Insurance/Portuguese Periods of Insurance/Portuguese Insurance Period

This is a period when contributions were paid or credited under Portuguese law. Under Portuguese law, every employee and self-employed person with income over a specified amount and over the age of 16 years must pay social insurance contributions under the General Scheme or one of the Special Schemes. This is usually 11% of salary for employees. The employer also makes a contribution of 24½% to an employee's social insurance payments. Rates of contributions for agricultural and self-employed workers are calculated at a different percentage.

Portuguese Sickness and Maternity Benefits

Sickness benefit is available to people who have 6 months insurance (continuous or cumulative). In addition, salaried workers (as opposed to the self-employed) must also have an employment history of at least 12 days in the 4 months preceding the illness. Initial benefit is 65% of the reference salary (the average of total salaries in 6 of the 8 months preceding the illness), increasing to 70% after an illness spanning a continuous period of 12 months. Sickness benefit can be paid for a maximum period of 3 years. It is paid to people in Portugal only. Under Article 15 of the Agreement with Australia, periods of Australian working life residence can count towards qualification.

Maternity allowance is granted to the mother for 98 days, 60 of which must be after childbirth. Rate is based on the beneficiary's total earnings for the first 6 months preceding the second month before the contingency determining protection divided by 180. Cannot be inferior to 50% of the daily minimum earnings set for the beneficiary's activity sector.

Portuguese Survivor's Pension

Portuguese survivor's pension (death benefit) is based on the deceased 's contributions. The deceased must have contributed to the Portuguese scheme for at least 36 months. Under the Agreement, the insured person's residence between age 16 and Portuguese age pension age can be counted to meet the minimum contribution requirements. Survivor's pension payable to a spouse is payable for up to 5 years to a spouse who is aged under 35 years at the time of the insured person's death. There is no time limit on payment to spouses over 35 at the time of death or to people totally and permanently incapacitated for work. The pension is not payable if the person remarries. Survivor's pension payable to children is paid until they reach 18 years of age, or longer if they are students. There is no age limit on handicapped children entitled to family benefits. If there is no spouse or children entitled to survivor's pension, dependent parents of the deceased may be entitled.

Portuguese Unemployment Benefits

A claimant must have been employed for 540 days during the 24 months before unemployment and be available, fit and registered for work. Under the Agreement, periods of employment while the person is an Australian resident can count towards the minimum period so long as the person has at least 4 weeks insurance after returning to Portugal. The benefit will not be paid outside the territory of Portugal.

Widow

The term is restricted to legally married women whose husbands have died. It does not include a widow who has since formed a de facto relationship and continues to live in that relationship but includes de facto widows who lived in a marriage-like relationship with a man for at least 3 years immediately before his death. The term does not include divorced women whose ex-husbands have died or widowers. The term 'widow' does not include men.

Wife Pension

After 30 June 1995, WP cannot be granted, even under an Agreement.

Last reviewed: 1 July 2008