Jobless drain Social Security

Increasing unemployment levels will force the Social Security to spend an extra €200 million than it had foreseen in its 2012 Rectification Budget in March.

The unforeseen expense with unemployment is likely to reduce the amount in the State Pensions Fund.

In the 2012 State Budget, unemployment benefits were expected to cost the State €2 billion, but after the amended budget in March and recent European Commission predictions pointing to an unemployment rate of 15.5% in Portugal, benefits are expected to rise by a total of €400 million.