In order to provide a comprehensive view of the issues relating to the application of the ratified Conventions on social security, the Committee considers it appropriate to examine Conventions Nos 12 (agriculture), 17 (accidents), 18 (occupational diseases), 19 (equality of treatment) and 102 (minimum standards) together.

The Committee notes the observations of the General Confederation of Portuguese Workers (CGTP-IN), communicated with the Government’s reports.

Part V (Old-age benefit). Article 26(2) of Convention No. 102. Pensionable age.Working ability of older persons. The Committee notes the information provided by the Government in its report concerning the reform of the pension system, which was aimed at enhancing its financial sustainability. The Committee notes that the legal age for entitlement to an old-age pension has been gradually increased to 66 years and 4 months in 2023. The Committee takes note of the observations of the CGTP-IN, that the expectancy of healthy life years at 65 years was only 7.7 years in Portugal in 2020, and that the level of employability of workers over 65 in 2022 reached just 9.3 per cent. The Committee further notes the information provided by the Government in its 2023 report on the application of the European Code of Social Security and its Protocol, which indicates that the number of elderly persons aged 65 compared to the number of persons of working age (from 15 to 64) reached 33.6 per cent in 2018, compared to 20.3 per cent in 1990. The Committee recalls that Article 26(2) of the Convention allows for an increase of pensionable age beyond 65 years with due regard to the working ability of older persons in the country concerned. The Committee therefore requests the Government to: (i) reply to the observations made by theGeneral Confederation of Portuguese Workers (CGTP-IN)in this regard; and (ii) provide statistical information on the working ability of older persons, notably on the healthy life expectancy, the life expectancy at 65 and the employability of persons aged 65 and over.

Article 36 of Convention No. 102. Payment of compensation in the form of a lump sum. The Committee notes the information provided by the Government that, in the event of incapacity for work of more than 30 per cent and less than 75 per cent, the conversion of a periodic payment into a lump sum is permitted only partially and at the request of a beneficiary, in accordance with section 75 of Act No. 98/2009. The Committee further takes note that, in such a situation, the partial conversion is subject to two limitations: (i) the remaining annual pension may not be less than six times the amount of the guaranteed minimum monthly remuneration in force; and (ii) the lump sum may not exceed that which would result from a pension calculated based on an incapacity of 30 per cent. The Committee notes Government’s indication that such limitations are sufficient to ensure that the lump sum is properly utilized as to guarantee the preservation of the subsistence income for the beneficiary of an employment injury pension.

Part XI of Convention No. 102 (Standards to be complied with by periodical payments). Article 65(10). 1. Review of the rates of employment injury pensions. The Committee takes due note of the information provided by the Government as regards the adjustment of disability pensions payable either by private insurance companies in case of an accident at work or by the Social Security Institute in case of an occupational disease.

2. Review of the rates of old-age, employment injury, invalidity, and survivors’ benefits. The Committee notes the statistical data provided by the Government on the evolution of the cost-of-living index and average wages, as well as the amount of standard old-age, employment injury and invalidity benefits since 2010. The Committee observes that minimum pensions during this period have increased at the same rate as the consumer price index (IPC) but that the social support index (IAS), which determines the level of other pensions, increased at a substantially lower rate. The Committee also takes note that there was no regular updating of pensions in 2021 and that the Government approved an extraordinary increase to be applied to lower pensions in 2022. The Committee notes the concerns expressed by the CGTP-IN, indicating that, in 2023, the Government set, at its discretion, the percentages for updating pensions at a much lower level than the legal formula, and that Law No. 53-B/2006 does not guarantee the maintenance of the real purchasing power. In this context, the Committee observes that the practice of adjusting mainly lower pensions without following the substantial changes in the cost of living may not guarantee the purchasing power of the pension payments. In view of this, the Committee requests the Government to (i) reply to the observations of the CGTP-IN in this regard; (ii) provide up to date statistical information on the changes in the index of earnings, the cost of living and the amount of old-age, employment injury, invalidity and survivors’ benefits since 2020, in accordance with Title VI of the report form for the Convention; and (iii) indicate how such changes guarantee the maintenance of the purchasing power as to the standard beneficiary under the terms of the Convention.

Part XIII (Common provisions). Article 69. Suspension of employment injury benefits. The Committee notes the Government’s indication that sections 14, 15, 16 and 17 of Law No. 98/2009 establish the situations in which suspension of benefits is allowed or that there would be no entitlement to employment injury benefits. The Committee also notes the Government’s explanation that these exclusions have very strict limits, which reduce the extent of their application.

Article 71. Financing of the social security system. The Committee takes due note of the information and data provided by the Government, which indicate that the overall contribution borne by employees attained 18.8 per cent of the total revenues in 2021, within the level allowed by Article 71 of the Convention.

Social security and poverty reduction. The Committee notes the Government’s statistical information on the reduction of poverty, despite the temporary reversal in 2020 resulting from the social effects of the COVID-19 pandemic. The Committee further notes, from the 38th report on the European Code of Social Security, that 16.4 per cent of people were at risk of poverty in 2021, 2 per cent less than in 2020, and that social transfers related to sickness and disability, family, unemployment, and social inclusion (excluding pensions) contributed to reducing the risk of poverty by 5.1 per cent.

Article 1 of Conventions Nos 17 and 18 and Article 71(3) of Convention No. 102. General responsibility of the State for the due payment of employment injury benefits. The Committee takes note of the information provided by the Government that delays in the provision of benefits were related to one single operator and that the Insurance and Pension Funds Supervisory Authority took specific measures, resulting in the normalization of the operations in 2022. The Committee notes the CGTP-IN’s observation as to the persistent delays in recognizing the occurrence of an accident at work or an occupational disease, particularly due to lack of medical personnel, which may deprive injured workers (and their families, in the event of death) of income for long periods of time. Furthermore, it indicates the under-declaration of wages for insurance purposes leading to a reduction of the amount of cash benefits paid in this regard. The Committee wishes to recall once more that Article 1 of Conventions Nos 17 and 18 and Article 71(3) of Convention No. 102 establish the responsibility of the State for the due payment of employment injury benefits and that the State must take all measures required for this purpose, including appropriate enforcement and compliance measures. The Committee requests the Government to: (i) reply to the observations of the CGTP-IN in this regard; and (ii) provide statistical information concerning the number of claims and the average time elapsed between the reporting of an accident at work/occupational disease, its recognition, and the beginning of payment of the respective cash benefits.

Application of the Conventions Nos 12, 17 and 18 in practice. The Committee notes the Government’s indication that, since 2014, the Working Conditions Authority (ACT) has adopted measures to prevent accidents at work, comprising training, awareness- raising and information activities aimed at certain sectors, including agriculture and fisheries, to reduce the number of accidents at work and the risk factors associated with occupational diseases. The Committee also notes the statistical information demonstrating the decrease in the number of accidents at work detected from 2014 to 2021, particularly in the agricultural, livestock and fishing sectors. The Committee also notes the information provided concerning the collection of statistical data on the incidence and prevalence of occupational diseases, showing that pilot exercises are currently being carried out, according to the framework regulation No. 1338/2008 of the European Parliament and of the Council, on community statistics on public health and health and safety at work, with a view to establishing a conceptual harmonization methodology to standardize the classifications of occupational diseases. The Committee notes that, according to the CGTP-IN, although the legislation concerning compensation for accidents at work applies to all workers and occupational accident insurance is compulsory, neither of them is fully applied in sectors characterized by the existence of various forms of subcontracting and temporary work, such as agriculture, resulting in, among other issues, the underreporting of cases. It indicates furthermore that injured workers are often dismissed without reintegration or professional rehabilitation. The Committee requests the Government to reply to the observations of the CGTP-IN in this regard, and to provide information on: (i) the number of accidents at work and occupational diseases, the violations detected by the labour inspection in this context and the number and nature of penalties applied; (ii) the measures adopted or envisaged to improve the reporting of accidents at work and occupational diseases, particularly in agriculture; and (iii) the results obtained by the pilot exercises regarding the incidence and prevalence of occupational diseases.