In 2024, there were 220,400 workers registered with Social Security, but only 23%—approximately 51,500—had declared contributions, according to official data sent to Lusa by the Social Security Institute (ISS).

The number of officially registered workers has remained stable over the past three years, but the percentage with contributions is consistently less than a quarter of the total. In 2022, 23% declared contributions; In 2023, the figure rose slightly to 24%, falling again to 23% in 2024.

According to the White Paper "Decent Domestic Work," published in April 2024 by the Union of Workers in Janitorial, Security, Cleaning, Domestic, and Miscellaneous Activities (STAD) with the support of the Commission for Citizenship and Gender Equality (CIG), 48% of female workers do not make deductions, with employers—mostly individuals—paying the deductions "in the vast majority of cases."

The same study indicates a 69% drop in the number of domestic workers filing Social Security taxes between 1990 and 2022, despite the 42% increase in the number of employers in the same period.

In December 2024, the average declared wage in the sector was €358 per month, below the national minimum wage (€820). Since 2022, the average remuneration has increased by 40 euros, but remains well below the legal minimum wage.

When work is paid by the hour, the declared amount for contribution purposes is 3.01 euros, even if the actual pay is higher. The law requires a minimum of 30 hours to be declared per month, and the total contribution rate is 28.3% (18.9% paid by the employer and 9.4% by the employee).

Failure to make contributions compromises the right to an old-age pension, unemployment benefit, sickness benefit, parental allowances, and Christmas and vacation bonuses.

Reform

The "Trabalho XXI" labour reform bill, presented by Luís Montenegro's administration, aims to end the criminalization of failure to notify Social Security of employee admissions—a rule that, since May 2023, could lead to prison sentences of up to three years or fines of up to €180,000 for employers who fail to declare contracts within the legal deadline.

The office of Labour Minister Maria do Rosário Palma Ramalho did not explain the reasons for the measure or its potential impact on tax and social security evasion.

Lawyers interviewed by Lusa warn of the risk of worsening informality. Madalena Caldeira, of Gómez-Acebo & Pombo, believes that "the absence of criminal consequences can be interpreted as a weakening of state protection," increasing workers' vulnerability. Rita Robalo de Almeida, of Antas da Cunha Ecija, emphasizes the preventive role of criminalization "from a psychological perspective" and anticipates "a significant increase" in tax evasion if the change is not accompanied by reinforced enforcement, awareness campaigns, and simplified reporting procedures.

Even with the change, the obligation to declare contracts will remain, and noncompliance will continue to be subject to fines, but not imprisonment or criminal fines.