Fraud and improper payments in Social Security: new program should save 40 million

Reinforcement of control mechanisms and ‘People First’ program. Lower pensions are expected to increase by 2.79% next year.

The Government estimates saving 40 million euros in 2026 with the reinforcement of control of fraud and undue payments in Social Security and the implementation of the ‘People First’ program, said the Minister of Labor today.

In the initial intervention during the hearing of the discussion on the State Budget proposal for 2026 (OE2026), the Minister of Labour, Solidarity and Social Security indicated that the Government will “continue to reinforce the control mechanisms that prevent individual Social Security payments and prevent fraud” in the system, highlighting that this measure “together with the ‘First People’ program should allow very relevant savings for the public treasury over the next few years”.

“In 2026 alone we estimate a savings of 40 million euros with the combination of these two measures”, explained Rosário Palma Ramalho.

On October 24, during the hearing within the scope of the general discussion of OE2026, the minister stated that the implementation of this program had made it possible to remove more than two million people from in-person Social Security services.

According to the minister, among the measures that will be implemented under the program ‘People First’, taking into account “significantly improve the relationship between Social Security and people and companies“, is “the simplification of the declaration of remunerations to Social Security”, the measure of which will advance in January next year, to reduce “companies’ contextual costs”.

Increase in pensions

The Minister of Labor stated today, in parliament, that the lowest pensions are expected to increase by 2.79% in 2026 and that the allocation of an extraordinary supplement will depend on budgetary slack.

The minister reiterated that the Government will “increase pensions at the legal rate” and “there is budget slack” assign a new one to pensioners with lower pensions.

Palma Ramalho also indicated that, based on the “most recent data” from INE, the lowest pensions, that is, up to two IAS (the equivalent of 1,045 euros) “should have an increase of 2.79%, that is, 0.5 points above 2025 inflation”. According to the minister, this update covers approximately 90% of pensioners.