The Simplification of the Contribution Cycle (SCC) introduced by Social Security represents a structural change in the way employers communicate their contribution obligations. The traditional monthly submission of the Remuneration Statement is replaced by a system in which Social Security itself automatically presents the contribution amounts, based on information already recorded, such as employment relationships, permanent remuneration and reported events, including absences or suspensions.
This new process takes place in three main stages:
- Automatic presentation of the contribution obligation by Social Security.
- Validation, correction or communication of new amounts by the employer.
- Payment of the contribution obligation based on the confirmed amounts.
Communications are carried out via the Interoperability Services Platform (PSi) or through the Social Security Direct portal, depending on the size of the employer. This technological system enables direct and secure communication between company IT systems and those of Social Security, reducing manual tasks and the likelihood of errors.
Adoption of the new model is voluntary during 2026 but becomes mandatory from 1 January 2027. Once adoption has taken place, it is definitive, and declarations submitted under the previous model will no longer be valid for contribution purposes.
This reform aims not only to reduce the administrative burden on companies, but also to strengthen the predictability and transparency of contribution obligations and to improve the quality of social data within the national contribution system.
Conclusion
The implementation of the Simplification of the Contribution Cycle marks a significant step in the digitalisation and modernisation of the relationship between Social Security and contributors in Portugal. Automating the calculation and reporting of contributions is expected to reduce bureaucracy, increase efficiency and enhance the quality of information declared by employers. For businesses, the transition requires an initial adaptation effort but delivers clear medium- and long-term benefits in terms of predictability and the reduction of repetitive administrative tasks.
How Nominaurea can help
Nominaurea, with offices in Lisbon and Porto, provides specialised consultancy services in accounting and human resources management, supporting companies in adapting to the new contribution cycle model, from data and systems preparation to validation and integration with the Interoperability Services Platform. In addition, it offers training, ongoing support and tailored solutions for all your company’s contribution and tax obligations. Speak with our team of certified accountants and payroll specialists.
