Benefit take-up rate
The proportion of individuals or households that are eligible for a benefit that have applied for and are receiving benefit payments.
Complementary system
Benefits provided outside of the state system, for instance private pensions.
Contributory benefit
A benefit that requires the claimant to have contributed a certain number of months or years of social contributions (normally while working).
Earnings deduction rate
The rate at which the means-test is applied to earnings in the household. For example, an earnings deduction rate of 50% reduces any benefit entitlement by 50% of the earnings of the household.
Evaluation
Formal methods used to understand the effects of a policy reform. Impact evaluation focusses on the long-term objectives and policy outcomes, typically using quantitative methods to formally quantify the causal effects of the reforms. Process evaluation focusses on understanding whether reforms had the expected effect on various aspects of the policy area, understanding whether the reform is working as intended without formally assessing the impact on long-term outcomes.
Family protection subsystem
A mixture of means-tested and non-means-tested benefits which are designed to cover additional costs. These are typically available to low-, middle- and, in some cases, high-income households.
Insurance system
Contributory-only benefits. For instance, unemployment and the main pension benefit.
Marginal tax rate
A measure of an individual’s financial work incentive at the margin: for instance, the income effect of working one more hour per week. Calculated in the same way as the participation tax rate.
Means-tested benefit
A benefit that is contingent on the household income and assets of the claimant.
Minimum Income Benefit (Rendimento social de inserção)
The main working-age safety-net benefit in Portugal which is available to all households provided their income meets the means-testing requirement.
Monitoring
A process of qualitatively and quantitatively observing various aspects of reform implementation during implementation. Reporting of results is usually quick and timely.
Participation tax rate
A measure of an individual’s financial incentive to work a given number of hours compared to not working. It measures the difference between income while working, and while not working. A PTR of 100% means that the working income is the same as the non-working income. A PTR of 0% means that the difference in income is equal to their gross earnings (that is they keep all their gross earnings and benefit).
Pensioner Social Assistance Benefit (Complemento solidário para idosos)
The main pensioner safety-net benefit in Portugal which is available to all households provided their income meets the means-testing requirement.
Social benefit
A non-contributory benefit, or a benefit that is both contributory and means-tested. For a complete list and definitions see Section 1.1.1.
Solidarity subsystem
Means-tested income-replacement benefits in Portugal that are targeted at individuals and households with very-low income and typically no earnings. For a complete list and definitions see Section 1.1.1.