The benefit provisions in Article 10 pertain to old-age, survivors, and permanent disability benefits under the Portuguese general and special social security systems. Under the general system, old-age benefits are payable to men at age 65 and to women at age 62. Workers in certain arduous occupations, such as miners, may qualify for benefits at younger ages. To qualify for old-age benefits, the worker must be credited with at least 120 months of coverage. The monthly amount of the old-age benefit equals 2.2 percent of the worker's average monthly covered earnings times the number of the worker's years of coverage. "Average monthly earnings" for this purpose is defined as the worker's average monthly covered earnings during the five calendar years of highest earnings out of the 10 calendar years immediately preceding retirement, death or disability onset. The old-age benefit amount is subject to a minimum of 30 percent and a maximum of 80 percent of average monthly earnings. Under the general system, moreover, if a person's monthly benefit computed under the above formula is less than 13,000 escudos (1988 figure), the benefit is increased to that figure.
A small supplement equal to 500 escudos per month is added to the amount determined under the provisions described above. In addition, if the worker has a dependent spouse, the benefit may be increased by 1,900 escudos a month (1987 figure) less any other income the spouse derives A "severe disability supplement" may be paid if the retired worker requires the constant attention of a third person.
Survivors benefits may be paid if the deceased worker is credited with at least 36 months of contributions. A surviving spouse may receive 60 percent of the old-age or disability benefit which was paid to the deceased pensioner (disregarding spouse and constant attendance supplements) or which would have been paid to the deceased worker based on accrued years of coverage if he had attained retirement age or become disabled at the time of death. In computing survivors benefit amounts, if the amount of the worker's benefit was less than 50 percent of average monthly earnings, the retirement benefit Is assumed to have equaled this amount. A widower must have been at least age 65 at the wife's death or be permanently and totally disabled. A widow who is under 35 years of age, has no child in care, and is not disabled can receive benefits for only 5 years.
Surviving child's benefits are payable to children under the age of 18 (24 if a student; no age limit if disabled). Total benefits payable to all the worker's surviving children equal 20 percent of the deceased worker's benefit if there is one surviving child, 30 percent if two, and 40 percent if three or more. These amounts are doubled if the worker is not survived by a spouse. In the absence of immediate family, the worker's parents and certain other relatives may qualify for survivors benefits.
A survivor who requires the constant care of a third person can receive a supplement equal in 1988 to about 4,000 escudos. In addition to monthly survivors benefits, if the worker paid contributions for at least 3 months, the surviving spouse (or, in the absence of a spouse, another relative according to a specified order of priority) may receive a death grant equal to 6 times the worker's average monthly earnings during the 2 years of highest earnings out of the last 10 years.
Disability benefits may be paid to a worker who is permanently unable to earn more than one-third the amount ordinarily earned in his or her usual occupation. The disability is considered permanent if, despite rehabilitation measures, the worker's earnings capacity is not expected to reach 50 percent within 3 years or the worker has received short-term cash sickness benefits for the maximum period of 1,095 days. To qualify for disability benefits, a person must have paid contributions for at least 60 months unless the disability is due to a work-related accident or disease. There is no recency-of- coverage requirement for disability benefits. The amount of the disability benefit is calculated in the same manner as the old-age benefit, and a disability beneficiary may qualify for the same spouse and severe disability supplements as an old-age beneficiary.