Unemployment benefits will go up by €17,5 in 2019
Inflation and the economic growth rate are the reasons behind the expected increase in unemployment benefits. Those out of a job will get from seven to €17,5 more from the government in 2019.
Minimum and maximum levels of unemployment benefits will go up by seven and €17,5, respectively, starting next year.
The increase is related to the economic growth, and it is also a result of the application of an indexing formula for social benefits, the Social Support Index (IAS), which serves as a benchmark for pensions and other social benefits.
The increase in the IAS depends on the behaviour of the GDP and it also evolves depending on inflation levels. By law, if the Portuguese economic growth rate is above 2% and below 3% (which is exactly what is predicted for this year), the accruals on the IAS will correspond to a 0.5% add-up to the consumer price index (CPI).
If, for instance, by the end of the year, the average inflation rate reaches 1.14% (the value reached in July), there will be a 1.64% increase in the IAS, from €428,9 to €435,9. Those awarded the maximum amount of unemployment benefits would then witness a shift from €1.089,7 to €1.072,25.
The increase in the IAS is also going to benefit those receiving the social unemployment subsidy, which will go up around six to seven euros.
According to the data released by the Portuguese Social Security this July, over 168 thousand people were benefiting from all the different types of unemployment benefits in the country.
