New Social Security Contribution Cycle: What Changes for Employers?

From January 2027, Portuguese Social Security will automatically calculate social contributions based on employee information reported on the admission process.

Employers are responsible for verifying the automatically calculated amounts and reporting any necessary changes. This new model, known as Simplificação do Ciclo Contributivo (SCC) — Contribution Cycle Simplification, replaces the traditional submission of the Remuneration Statement (Declaração de Remunerações).

What is changing?

• Previously, employers reported remuneration data from their payroll calculations to Social Security until the 10th day of the following month.
• Now, under the new model, employers must review the amounts recorded by the Social Security and report any necessary corrections until the 20th day of the following month.

During 2026, enrolment was voluntary and phased. From January 1st 2027, the model becomes mandatory for all employers. Companies with more than 10 employees must submit information through the Interoperability Services Platform (Plataforma de Serviços de Interoperabilidade — PSi).

CSCC has been training its team to implement the transition to the new Social Security model and adapting its payroll systems to integrate with PSi, which enables direct communication with Social Security.