Foreign Workers Now Account for Over 12% of Social Security Contributions in Portugal
The role of immigrant workers in Portugal’s economy is becoming more significant, with their contributions to the country’s social security system more than doubling in just four years. In 2024, foreign workers paid a total of 3.645 billion euros into social security, up from 1.4 billion euros in 2020. That is a staggering increase of 157% and these payments now represent 12.4% of the system’s total revenue, according to data from the Ministry of Labor, Solidarity, and Social Security.
Rising Immigration Helps Fill Labor Shortages
The increase in contributions comes as Portugal continues to rely on foreign workers to address shortages in key industries. Many immigrants find jobs in the restaurant and service sectors, where demand for workers remains high. To attract employees from abroad, some companies offer contracts and housing. However, businesses still face challenges in bringing workers into the country due to bureaucratic hurdles.
Largest Contributions Come from Brazilian Workers
Among immigrant workers, Brazilians contribute the most to Portugal’s social security system. They are followed by workers from India, Nepal, Cape Verde, and Angola. These nationalities make up a large portion of the country’s foreign workforce, particularly in lower-wage jobs that many local workers and European expats are unwilling to take.
The CEO of Pestana says that "doing hospitality without thinking about immigrants is completely impossible nowadays." Therefore, he urges the creation of conditions to welcome those arriving in the country, particularly in terms of housing.
José Theotónio (CEO Pestana Group) in Jornal de Negocios
Trend Expected to Continue in the Coming Years
With labor shortages persisting and Portugal aiming to meet economic recovery goals, immigrant workers are likely to play an even bigger role in the country’s workforce. The steady rise in foreign contributions suggests that their presence in the economy will only grow, helping sustain the social security system for years to come.
Source: RTP Madeira
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