The Social Support Index (IAS) for 2026 has been set at €537.13 by Ordinance no. 480-A/2025/1, of 30 December, representing an increase of 2.8% compared to €522.50 in 2025 (+€14.63). This index, crucial for the Portuguese Social Security system, triggers a cascade of adjustments across dozens of legal thresholds. Consequently, there is an increase in the minimum contributory base for managers, the exemption thresholds for self-employed workers, the level defining the qualification of contracting entities, and various social benefits. Understanding these changes is fundamental for financial planning and compliance with tax and social security obligations for companies and professionals.

The Social Support Index (IAS) is one of the pillars of the Social Security and tax architecture in Portugal. Although it is rarely a figure memorised by the general public, its annual update has a transversal impact, affecting everything from human resources management in companies to the financial planning of self-employed workers and access to social benefits. Its primary function is to serve as a reference for the automatic update of a wide range of values that would otherwise require constant and time-consuming legislative revisions. This article details the IAS value for 2026, explores its vast range of indexation, and presents practical examples illustrating the financial impact for managers, self-employed workers, and companies that use freelance services.

1. The IAS Value in 2026 and Its Evolution

The IAS for the year 2026 has been set at €537.13, as stipulated in Ordinance no. 480-A/2025/1, of 30 December, effective from 1 January 2026. This value reflects an increase of 2.8% compared to the 2025 IAS, which was €522.50. In absolute terms, the increase is €14.63 per month. This annual update is an essential mechanism to ensure that the system's reference values remain aligned with the country's economic and social evolution.

It is crucial to understand that this seemingly modest variation has significant consequences when applied to multiples of the IAS, which are used to define important thresholds within Social Security and taxation. The table above demonstrates how common thresholds, such as 4 or 6 times the IAS, are impacted by this update.

2. The Concept and Function of the IAS in the Portuguese Legal System

The Social Support Index (IAS) was created by Law no. 53-B/2006, of 29 December, which established its update regime. Its primary purpose is to serve as a reference for the determination and automatic update of a vast set of values, from social benefits to contributions, and from limits and conditions for accessing various benefits and regimes. Before its creation, many of these values were fixed in euros in legal diplomas, quickly becoming obsolete and requiring constant legislative interventions. With the IAS, the legislator chose to index these values to a multiple of the IAS (e.g., "1 IAS", "4 IAS", "6 IAS"), ensuring their dynamic and debureaucratised update.

It is fundamental not to confuse the IAS with the National Minimum Wage (Guaranteed Minimum Monthly Remuneration - RMMG). Although both are important economic indicators and are updated annually, they serve distinct purposes and are set by different diplomas. The Minimum Wage regulates minimum remunerations in the labour market, while the IAS is a technical index that primarily balances contributory, social, and, to a lesser extent, tax calculations. The Ordinance that sets the IAS is distinct from the diploma that establishes the National Minimum Wage.

3. Impact of the IAS on Social Security for Companies and Workers

For companies and workers, the IAS is a central element in determining various obligations and rights within Social Security. The most relevant IAS-indexed thresholds for 2026 are as follows:

Additionally, the IAS is, as its name suggests, the "Social Support Index", so its update directly impacts the amounts of unemployment, sickness, parental, family allowance, social integration income benefits, among others, as well as the conditions for accessing many of these supports. Law no. 4/2007, of 16 January (Social Security Basic Law), establishes the general framework for its use.

3.1. Minimum Contributory Base for Managers and Administrators

Members of statutory bodies (MOE) who perform management or administration functions, or who receive remuneration from the company, are subject to the general Social Security regime. Their contributory base cannot be less than 1 IAS, except for rare exceptions provided by law (cf. Art. 46 of the CRCSPSS). One of the most common exceptions is the accumulation of functions with another activity subject to a social protection regime that covers all contingencies and on a contributory base equal to or greater than 1 IAS.

With the 2026 IAS set at €537.13, and considering the global contributory rate of 34.75% (23.75% borne by the employer and 11% borne by the manager, as per Arts. 53 and 54 of the CRCSPSS), the minimum monthly contribution in 2026 will be:

In comparison, in 2025, with the IAS at €522.50, the minimum contribution was approximately €181.57 (€522.50 x 34.75%). Thus, the increase in the IAS represents an increase of about €5.08 per month per manager on the minimum base. It is important to note that other members of statutory bodies without management functions, whose remunerations are not based on the effective management of the company, contribute at a global rate of 29.6% (20.3% borne by the company + 9.3% borne by the MOE), with a reduced scope of social protection.

3.2. Exemption for Self-Employed Workers in Accumulation: The 4 IAS Threshold

One of the most relevant points for professionals who combine employed work with providing services as a self-employed worker (TI) is the possibility of exemption from Social Security contributions as a TI. This exemption, provided for in Article 157 of the CRCSPSS, aims to avoid double contributions to the same social protection system. The conditions for this exemption are cumulative and strict:

• The average monthly relevant income calculated quarterly must be less than 4 IAS. For 2026, this value corresponds to €2,148.52 (€537.13 x 4). The relevant income for TIs generally corresponds to 70% of service provision income and 20% of income from the production and sale of goods.
• Activities must be provided to distinct entities, i.e., the TI cannot provide services to the same employer or to entities with which they have a relationship of control or group.
• Employed work must guarantee coverage under another mandatory social protection regime that covers all contingencies (retirement, sickness, parental leave, etc.).
• The average monthly salary earned in employed work must be equal to or greater than 1 IAS. For 2026, this value is €537.13.

Practical Example 1: Self-Employed Worker Exemption
Consider an engineer who has an employment contract with a gross monthly salary of €1,500. In parallel, they provide services as a TI, invoicing €9,500 in the first quarter of 2026 (January to March).
1. Average monthly salary: €1,500 (greater than 1 IAS of €537.13) - Condition 4 met.
2. Quarterly relevant income as TI: 70% of €9,500 = €6,650.
3. Average monthly relevant income for the quarter: €6,650 / 3 = €2,216.67.
In this case, the average monthly relevant income (€2,216.67) is higher than the 4 IAS limit (€2,148.52). Thus, this engineer, despite meeting the other conditions, will not be exempt from contributions as a TI to Social Security in the following quarter, and will have to pay the respective contributions. If the average monthly relevant income were, for example, €2,100, they would be exempt, provided the other conditions were met.

The contributory rate for self-employed workers remains at 21.4% on the relevant income calculated (25.2% for sole traders with organised accounting, as per Art. 168 of the CRCSPSS). The minimum contribution, when there is an obligation to contribute, is €20/month.

3.3. Contracting Entities: The 6 IAS Threshold

The figure of the "contracting entity" was introduced to mitigate precarious work and ensure the social protection of self-employed workers who are economically dependent on a single or few entities. If a company concentrates more than 50% of a self-employed worker's annual invoicing volume, it may be qualified as a contracting entity and, consequently, have an obligation to pay an additional contribution to Social Security (cf. Art. 140 of the CRCSPSS). This obligation only materialises if two essential conditions are met:

• The self-employed worker must be subject to the obligation to contribute to the self-employed workers' regime.
• The self-employed worker's annual service provision income must be greater than 6 IAS. For 2026, this threshold is €3,222.78 (€537.13 x 6).

The rates applicable to the contracting entity are 10% of the total value of services provided if economic dependence exceeds 80%, and 7% in other cases (i.e., when dependence is between 50% and 80%). The calculation of this value is ex officio, carried out by Social Security based on the Quarterly Declarations (DT) of self-employed workers or tax data, and payment is made in a single instalment in the year following the provision of services.

Practical Example 2: Contracting Entity Obligation
A company contracts a marketing consultant (self-employed worker) who invoices €8,000 for services during 2026. Of this amount, €7,000 is invoiced to the company in question, and the remaining €1,000 to other clients. The consultant is not exempt from contributions as a TI.
1. Annual TI income: €8,000 (greater than 6 IAS of €3,222.78) - Condition 2 met.
2. Percentage of invoicing concentrated in the company: (€7,000 / €8,000) x 100% = 87.5%.
As the percentage of economic dependence (87.5%) exceeds 80%, the company will be qualified as a contracting entity and will have to pay an additional contribution of 10% on the value of services provided to the consultant (€7,000).
Contracting Entity Contribution: €7,000 x 10% = €700.

This amount will be calculated by Social Security in 2027 and notified to the company for payment.

4. Contributory Rates and Procedural Novelties in 2026

The State Budget for 2026 (Law no. 73-A/2025, of 30 December) did not introduce changes to Social Security contributory rates. Thus, the rates remain the same as in previous years:

• General Regime (Employed Work): 34.75% (23.75% borne by the employer and 11% borne by the worker).
• Members of Statutory Bodies (non-management): 29.6% (20.3% borne by the company and 9.3% borne by the MOE).
• Self-Employed Workers: 21.4% on relevant income; 25.2% for sole traders with organised accounting.
• Contracting Entities: 7% or 10%, depending on the degree of economic dependence.

The major novelties for 2026 lie in procedural changes, namely the simplification of the contributory cycle. Decree-Law no. 127/2025, of 20 December, established a new model for calculating and paying Social Security contributions. This diploma provides for the automatic calculation of contributions by Social Security, replacing the Monthly Remuneration Declaration (DMR) by employers. Payment of calculated contributions will now be made between the 1st and 25th of the month following that to which the remunerations refer.

For 2026, adherence to this new model is voluntary for employers. However, from 1 January 2027, this system will become mandatory for all employers. Companies that choose not to adhere in 2026 maintain the classic deadline for submitting the DMR and paying contributions between the 10th and 20th of the following month. The deadlines for self-employed workers remain unchanged.

Another point to highlight from the State Budget for 2026 is Article 96, which provides for an exceptional regime of IRS exemption and exclusion from the contributory base for productivity bonuses. These bonuses, paid in 2026, are exempt from IRS and are not considered for the calculation base of Social Security contributions, provided they do not exceed 6% of the worker's annual basic remuneration and that the company demonstrates having implemented eligible salary increases of at least 4.6% for the generality of its workers. This measure aims to encourage productivity and salary valorisation, offering a tax and contributory benefit for both companies and workers.

5. Common Errors to Avoid in Applying the IAS

The complexity of Social Security legislation and the interlinking of the IAS with various regimes often lead to errors by companies and professionals. Knowing and avoiding these mistakes is fundamental to ensure compliance with obligations and optimise charges.

1. Confusing IAS with the National Minimum Wage (RMMG): As already mentioned, these are distinct indicators. The Minimum Wage applies to employed labour relations, while the IAS is an index for benefits, contributions, and social thresholds.
2. Disregarding the annual update of the IAS: Failure to update IAS-indexed thresholds can lead to inaccuracies in calculating contributory bases, loss of exemptions, or non-compliance with requirements for accessing support, resulting in fines or the need to regularise amounts.
3. Error in calculating Relevant Income for TIs: Many self-employed workers calculate their contributions based on the totality of their gross income, forgetting that relevant income is, as a rule, 70% of services or 20% of the sale of goods. This inaccuracy can lead to over or under-contributions.
4. Ignoring the cumulative conditions for exemption for TIs with an employment contract: The exemption under Article 157 of the CRCSPSS requires that ALL four conditions be met. Failing one of them (e.g., employed salary below 1 IAS, or relevant income above 4 IAS) implies the obligation to contribute as a self-employed person.
5. Failing to foresee qualification as a Contracting Entity: Companies that regularly work with freelancers should monitor invoicing to avoid surprises. Exceeding 50% economic dependence and 6 IAS of the TI's annual income can generate an unexpected additional contribution in the following year.
6. Unawareness of exceptions to the minimum base for managers: Although the general rule is 1 IAS, there are specific situations (such as accumulation with another regime) where the base may be lower or where the manager may be exempt. Careful analysis of the individual framework is crucial.
7. Not keeping up with procedural novelties: The transition to the new contributory cycle in 2026 (voluntary) and 2027 (mandatory) requires attention. Failure to adapt to new deadlines and calculation methods can lead to penalties.

6. Conclusion and Practical Recommendations

The IAS is more than just a number; it is a dynamic factor that shapes the obligations and rights of companies and workers in the Portuguese Social Security system. Its update for 2026, set at €537.13, entails adjustments in multiple aspects, from the minimum contributory base for managers and administrators to the exemption thresholds for self-employed workers and the conditions for the qualification of contracting entities.

For companies, it is imperative to:

• Review the contributory framework of managers: Ensure that the contributory bases are correct and up-to-date.
• Monitor the relationship with self-employed workers: Assess the risk of qualification as a contracting entity, especially for those with whom there is a higher volume of invoicing.
• Keep abreast of procedural changes: Prepare for the transition to the new Social Security contributory cycle, evaluating the convenience of adhering to the voluntary regime in 2026.
• Analyse the impact of Article 96 of the OE2026: If the company intends to award productivity bonuses, verify the conditions for benefiting from IRS exemption and exclusion from the contributory base.

For self-employed workers, it is advisable to:

• Recalculate exemption thresholds: If you accumulate with employed work, check whether your relevant income and salary continue to allow for exemption given the new values of 1 IAS and 4 IAS.
• Maintain organised financial records: Facilitate the calculation of relevant income and the communication of data to Social Security.

Proactive and informed management of these variables is crucial to avoid contingencies and optimise tax and contributory burdens. The complexity of the system often requires the support of specialised professionals.

For a complete understanding of your company's contributory obligations and to ensure compliance with the latest legislative updates, we invite you to consult our detailed guide on Social Security for companies. If you are planning new hires or re-evaluating your personnel costs, also explore our article on how much an employee costs a company.

HVR Business Consulting, in Lisbon, supports over 200 companies and professionals in managing their tax and contributory obligations. Our team of specialists is prepared to assist you in analysing the impact of IAS 2026 on your specific situation and in implementing best accounting and tax practices. Contact us or learn about our accounting services for personalised and strategic support.

Frequently Asked Questions (FAQ)

What is the IAS value in 2026?

The IAS (Social Support Index) has been set at €537.13 for 2026 by Ordinance no. 480-A/2025/1, of 30 December, effective from 1 January 2026. It represents an increase of 2.8% compared to the €522.50 in force during 2025, i.e., an additional €14.63 per month. This value serves as a reference for dozens of legal and contributory thresholds.

How much did the IAS increase compared to 2025?

The IAS increased by 2.8% in 2026: it went from €522.50 to €537.13, an increase of €14.63. As many Social Security thresholds are multiples of the IAS, all increase in the same proportion: 4 IAS go from €2,090.00 to €2,148.52 and 6 IAS go from €3,135.00 to €3,222.78. It is advisable to review frameworks and exemptions that depend on these values.

Is the IAS the same as the minimum wage?

No. The national minimum wage (guaranteed minimum monthly remuneration) is the minimum amount an employer can pay a worker. The IAS is a technical index: it serves as a calculation base for contributions, exemptions, social benefits, and other legal thresholds. They are set by different diplomas and have different values — in 2026 the IAS is €537.13.

How much does a manager pay for Social Security in 2026?

The minimum contributory base for managers and administrators is 1 IAS, i.e., €537.13 per month in 2026. On this base, the global rate of 34.75% applies (23.75% borne by the company and 11% borne by the manager), which results in a minimum contribution of approximately €186.65 per month. In 2025, with the IAS at €522.50, the minimum was approximately €181.57.

When is a self-employed worker exempt for also having an employment contract?

The exemption under Article 157 of the Contributory Regimes Code of the Social Security System (CRCSPSS) requires four cumulative conditions: average monthly relevant income for the quarter less than 4 IAS (€2,148.52 in 2026); activities provided to distinct entities, without a relationship of control or group; employed work covering all contingencies; and average monthly salary equal to or greater than 1 IAS (€537.13).

Does the IAS increase change Social Security rates in 2026?

No. The rates remain the same: 34.75% in the general regime (23.75% company + 11% worker), 21.4% for self-employed workers, 25.2% for sole traders, and 7% or 10% for contracting entities. What increases are the values indexed to the IAS — minimum bases, exemption thresholds, and social benefits — and procedures change, with the new contributory cycle of DL 127/2025.

Sources and Legal References

• Ordinance no. 480-A/2025/1, of 30 December: Sets the value of the Social Support Index (IAS) for the year 2026.
• Law no. 53-B/2006, of 29 December: Establishes the update regime for the Social Support Index.
• Law no. 4/2007, of 16 January (Social Security Basic Law): Relevant articles on the social protection system and the use of the IAS.
• Decree-Law no. 187/2007, of 10 May (Contributory Regimes Code of the Social Security System - CRCSPSS): Articles 46, 53, 54, 140, 157, 168 and subsequent, which regulate contributory bases, contributory rates, exemptions, and the regime of contracting entities.
• Law no. 73-A/2025, of 30 December (State Budget for 2026): Article 96 on the IRS exemption regime for productivity bonuses.
• Decree-Law no. 127/2025, of 20 December: Establishes the new model for calculating and paying Social Security contributions.