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Benefits in Portugal

Mandatory Employee Benefits in Portugal





Christmas and holiday subsidies


In Portugal, annual salaries are divided into 14 payments instead of the standard 12. The extra two salaries are provided as a Christmas bonus paid by the 15th of December and a holiday bonus paid before the employee's annual leave (usually June).


Employers need to sign a written agreement with each employee stating that 50% of the Christmas and Holiday allowances will be paid in 12 times, along with the monthly retribution. The remaining 50% will still be due on the dates stated in the paragraph above. It is not possible to include the allowances 100% in the 12 months retributions.


Basic insurance by the national system


Employees in Portugal contributing to social security are covered for basic insurance by the government. This includes healthcare, pension fund, unemployment aid and paid parental leave.

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Wage guarantee fund


Employers are obliged to contribute monthly 1% of an employee's gross income to the Working Compensation Fund (Fundo de Compensação do Trabalho) and the Working Compensation Warranty Fund (Fundo de Garantia de Compensação do Trabalho). This protects employees from the risk of not receiving their salary in case the employer defaults.


Workers compensation insurance


All employees must be covered for accidents at work and on the way to and from work. Coverage insures employees with a temporary, permanent or partial disability or their families in case of death, including funeral grant, spouse or orphan's pension.




Non-Mandatory Employee Benefits in Portugal


Most common non-mandatory benefits in Portugal.


Meal vouchers


It is common to offer meal vouchers or lunch cards to employees. Meal allowances are tax-free up to €6.00 daily if paid in cash and €9.60 if paid through lunch tickets.


Public transportation allowance


Some companies offer monthly transportation allowance to and from work to employees.


Supplementary pension


Some companies offer private pension plans to employees.


Supplementary health & life insurance


Some employers offer supplementary health and life insurance to senior-level executives. Smaller companies usually provide an allowance in lieu of arranging insurance.




Depending on the nature of the job, some employees receive a cash bonus when fulfilling goals, quotas or targets. Same is valid for seniority bonuses.


Flexible working hours


Most tech companies offer flexible working hours to employees to accommodate their productivity.


Phone bills


Some companies offer smartphones to employees and cover the cost of their monthly phone plan. 




Tech companies usually allow employees to select work equipment of their choice. 


Business travel allowance


For jobs that require business travel, companies usually offer a tax-free daily allowance of €50.20 (€69.19 for members of the board) for trips within Portugal and €89.35 (€100.24 for members of the board) for international trips.


Gym membership


Companies in the tech space usually offer gym membership or gym discounts to their employees.


Curious to discover what benefits great employers offer in Portugal?

Download our handy infographic to learn more.





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