SRS Legal Shots: Social Security launches the SCC – Simplification of the Contribution Cycle

Decree-Law 127/2025, of 9 December, establishes a new model of interaction between Social Security and contributors through an interoperability system (the Interoperability Services Platform). This system enables systematic data cross-checking and significantly reduces the need for employer intervention.

The transition to the new Social Security contribution-reporting model will take place voluntarily between 1 January and 31 December 2026. After this date, all employers will be required to use the SCC. Social Security has already initiated a broad data-review and cross-checking process, issuing notifications to employers to regularise situations ahead of the new system entering into force.

Under the new SCC model for reporting and calculating contributions, Social Security will automatically determine monthly contribution amounts based on information already held regarding each employee, namely: employment relationships, applicable contribution rates, permanent remuneration (P), working days, absences or suspensions known to Social Security (such as sickness, parental leave or contract suspensions), and any applicable hiring-incentive reductions.

Employers will no longer submit monthly Remuneration Statements (DR). Instead, they must confirm, by the 20th day of the following month, the values automatically generated by the system based on previously declared permanent remuneration, as well as validate any changes to monthly remuneration or other amounts due. Failure to respond will be deemed acceptance of the values calculated by Social Security.

All communications must be made through the electronic channels provided by Social Security, in particular through the Interoperability Services Platform. Employers with fewer than 10 employees may alternatively use the Social Security online portal.

Social Security has already begun cross-checking employer data and issuing notifications to regularise unclear situations ahead of the new system taking effect. Employers should act now to review and regularise any outstanding compliance issues.