Minimum Working Conditions
Employers and employees in Portugal are generally free to negotiate the terms of their employment relationship. Nonetheless, the Portuguese Labour Code establishes certain minimum working conditions that cannot be overridden, except in some cases by Collective Regulation Instruments. Such agreements may only modify these conditions if they provide more favourable terms for employees and do not contradict the legal terms regarding the following aspects:
- Personality rights, equality and non-discrimination
- Protection during parenthood
- Labour developed by minors
- Employees with reduced working capacity, disabilities or chronic illness
- Student employees
- The employer’s duty to provide information
- Limits on the length of normal daily and weekly working periods
- Minimum length of rest periods, including the minimum length of the annual holiday period
- Maximum working hours for night employees
- Form of fulfilment and guarantees of remuneration, as well as payment for overtime work
- Remote work
- Prevention and remedying of accidents at work and occupational diseases and the legislation that regulates it
- Transfer of company or undertaking
- Rights of elected employees’ representatives.
Salary
The minimum statutory wage for 2025 is EUR 870 per month and applies to all full-time employees, irrespective of their age and experience.
Collective Regulation Instruments may establish specific benefits as well as a minimum salary above the minimum statutory wage, based on the employees’ professional category and job level.
Employees are entitled to 14 monthly payments per annum:
- 11 payments corresponding to 11 months of work actually performed
- A 12th payment corresponding to holiday remuneration
- A 13th payment corresponding to holiday bonus and
- A 14th payment corresponding to Christmas bonus.
Although not mandatory under the general regime, it is common for employees to receive meal allowance, paid daily per each day of effective work performed, either in cash or in meal card.
Collective Regulation Instruments may foresee this benefit (also common), in which case it is mandatory.
Some companies (such as multinational corporations) frequently also offer the following benefits (although not necessarily all of them) to their employees:
- Participation in health insurance scheme
- Participation in life insurance / private pension scheme
- Participation in variable remuneration/ bonus / incentive scheme
- Participation in share / stock option scheme
- Company car
- Education vouchers (that co-fund schooling expenses)
Maximum Working Week
Generally, an employee is subject to maximum working hour limits as follows:
- Eight hours per day
- 40 hours per week
Key points related to working hours include:
- Normal working hours: The typical full-time schedule cannot exceed 40 hours per week or 8 hours per day.
- Overtime: In general terms, any work performed beyond the standard daily or weekly limits requested by the employer is considered overtime and must be compensated with higher pay and/or additional time off, depending on the circumstances.
- Flexible Schedules: Other working time regimes may be agreed, for example, exemption from normal working hours agreements pursuant to which an employee is not bound by a fixed work schedule; collective bank of hours; or adaptability regime under which the employee’s normal work period is defined in average terms over a given period.
- Reduced Schedules: Part-time employment may be agreed upon; Additionally, Collective Regulation Instruments can reduce the working week to fewer hours.
- Rest periods: Employees are also entitled to a minimum rest period of 11 consecutive hours between two working days/periods and at least one full day off per week (general regime – Sunday). Additionally, the work period must be interrupted by a rest break with a duration of no less than one hour and no more than two hours, ensuring that the employee does not work for more than five consecutive hours without a break.
- Flexible or reduced schedules: Some exceptions apply, such as in cases of exemption from working hours, part-time employment, or specific employment contracts. Additionally, Collective Regulation Instruments can reduce the working week to fewer hours.
Overtime
Overtime occurs when an employee works more than the established daily or weekly working hours.
It must be duly justified and it may be required for reasons such as increased workload, extraordinary business needs or emergency situations.
The law sets limits on the amount of overtime an employee can work, which generally cannot exceed: 2 hours per day and 150 hours per year for most employees. These limits may vary based on specific Collective Regulation Instruments or business sectors.
Overtime is remunerated as follows (under the provisions of the Labour Code):
If the employee renders less than 100 hours annually of overtime work:
- An additional 25% for the first hour or fraction and an additional 37.5% per subsequent
hours or fraction, on normal working days
- An additional 50% per hour or fraction on weekly rest days or public holiday
If the employee renders more than 100 hours annually of overtime work:
- An additional 50% for the first hour or fraction and an additional 75% per subsequent hours or fraction, on normal working days
- An additional 100% per hour or fraction on weekly rest days or public holiday
The performance of overtime is subject to statutory limits.
Employer’s Obligation to Provide a Healthy and Safe Workplace
Employer’s Obligation to Provide a Healthy and Safe Workplace
Under Portuguese law, employers are required to organize occupational safety and health services according to specific modalities, which are outlined in the legislation to ensure compliance with safety standards, the most relevant being the following:
- Internal Service (Serviço Interno): The company organizes its own internal occupational safety and health (OSH) service. This is typically required for companies with higher risk activities or those employing a large number of workers. The employer is also required to appoint qualified personnel responsible for implementing health and safety measures.
- External Service (Serviço Externo): Companies can outsource their occupational safety and health services to specialized external entities certified for this purpose. The external service provider must comply with all legal requirements and ensure that the company adheres to health and safety standards.
- Mixed System (Sistema Misto): In some cases, companies may choose a mixed approach, combining internal and external services. For example, they may maintain internal staff for certain areas while outsourcing others.
Once the employer selects the appropriate modality, they must implement safety measures in line with the law. This includes creating emergency plans, conducting risk assessments, providing training, and ensuring ongoing compliance through regular safety checks and employee health evaluations.
In addition to these modalities, employers must also take into account specific obligations, such as training a sufficient number of employees in first aid, fire safety, and evacuation procedures, providing safety and health training relevant to each employee’s job, and ensuring proper medical examinations and work accident insurance coverage for all employees.
Complaint Procedures
In addition to filing internal complaints within the Company, employees have the right to report any legal violations to the Authority for Working Conditions (“Autoridade Para as Condições de Trabalho”). This entity is responsible for overseeing compliance with labour laws, particularly those related to health and safety in the workplace. The ACT also has the authority to investigate reported violations and impose penalties on employers for non-compliance with the relevant legislation.
Protection from Retaliation
Under Portuguese law, employees cannot be penalized for leaving their workstation or a hazardous area when faced with serious and imminent danger. Additionally, they are protected from any disciplinary action for taking measures to safeguard their own safety or the safety of others in such situations.