Thinking about working in Portugal or planning a move soon? In the last several years, Portugal became one of Europe’s most attractive destinations for expats, digital nomads, and remote workers. The lifestyle is relaxed, the food is unforgettable, and the people are known for their kindness. What surprises many newcomers most are the country’s labor laws, which offer a strong level of protection and stability for workers. If you are job hunting, planning to relocate, or simply curious about what working life is like in Portugal, here are 12 things you probably did not know about the Portuguese workplace.
1. Portugal Has Strong Employee Protections and an Growing Minimum Wage.
Portugal has steadily raised its national minimum wage as part of a long term strategy to improve worker protections and overall quality of life. For full time employees, the minimum wage was 760 euros per month in 2023, then increased again to 820 euros per month in 2024. It further increased to 870 euros per month in 2025. While wages remain lower than in northern Europe, these yearly increases show a clear effort to continue to improve earning power in Portugal. Expats should expect lower salaries compared to the United States or northern Europe, but the tradeoff often includes a lower cost of living and stronger labor protections.
2. The Standard Portuguese Workweek Is 40 Hours, but Many Companies Offer Less.
The legal maximum workweek is 40 hours with a daily limit of eight hours. However, many businesses, especially in tech, creative fields, public services, and international companies, opt for 35 to 38 hour workweeks. Portugal has also tested versions of the four-day workweek, which shows promising results that may influence future policy. This overall trend toward shorter work hours should appeal to many expats seeking a healthier work life balance.
3. You Get at Least 22 Paid Vacation Days Per Year.
All employees receive a minimum of 22 working days of paid annual leave, and it is common for companies to add extra days. Additional leave may be granted for seniority, birthdays, or company anniversaries. Some workers can even earn extra vacation days through excellent attendance, which is known locally as assiduidade. For expats coming from countries with limited vacation time, Portugal’s approach may be a welcome change.
4. Portugal Passed a Landmark Remote Work Law in 2021.
In November 2021, Portugal became one of the first countries in Europe to update its labor laws specifically for remote work. These laws were created after the pandemic brought new challenges to the workplace. Under the new rules, employers with ten or more employees can face penalties for contacting workers outside normal working hours. Companies must help cover remote work expenses such as electricity and internet, and these contributions can be counted as business expenses. Employers are also prohibited from monitoring remote workers in their homes. Parents with children under eight gained the right to work from home without needing prior approval. To reduce isolation, employers must organize regular face to face meetings at least every two months. These changes were described as a major shift in work culture and became part of Portugal’s strategy to attract remote workers and digital nomads.
5. Overtime Pay Is Strictly Regulated and More Generous Than People Expect.
Overtime in Portugal follows strict rules to protect workers. Employees must be paid at higher rates for overtime hours with additional increases for work on weekends and holidays. There is also a yearly limit on how much overtime a company can request except in essential services. These protections help prevent burnout and excessive working hours.
6. The 13th and 14th Month Salary Is Common in Portugal.
In Portugal, many workers receive what is known as the 13th and 14th month salary, which means that instead of dividing your annual pay into twelve equal monthly payments, your employer may divide it into fourteen. These extra payments are called the holiday allowance and the Christmas allowance. At least one of them is required by law, but many industries provide both. The holiday allowance is usually paid in the summer before workers take their vacations, and the Christmas allowance is typically paid in December. This system is deeply embedded in Portuguese work culture and often surprises expats who are used to a standard twelve-month pay structure.
To understand how this works in practice, imagine you earn 1,000 euros per month. In a country with a traditional twelve-month system, you would earn a total of 12,000 euros in a year. In Portugal, you would still earn the same annual amount in terms of base salary, but you would receive two extra instalments: one in the summer and one at Christmas. This means you would receive your regular 1,000 euros each month, plus an additional 1,000 euros during holiday season and another 1,000 euros in December. By the end of the year, your total earnings would be 14,000 euros, simply distributed in a different way.
For expats, this structure can feel like receiving two substantial bonuses each year, even though it is really part of your normal compensation. It offers a welcome financial cushion during the times of year when people tend to spend more especially during summer holidays and the end of year holidays.
7. Parental Leave Benefits Are Strong Compared to Many Countries.
Portugal offers generous parental leave that can be split between parents. Mothers must take a short mandatory period after childbirth, and fathers receive dedicated paternity leave that employers must honor. Parents can also choose extended leave at different pay levels depending on how long they stay home. These policies create a more supportive environment for families and appeal to expats moving with young children.
8. You Cannot Be Fired Without a Clear Legal Process.
Terminating an employee in Portugal requires a specific and detailed process. Employers must provide a legally acceptable reason, follow documented steps, and allow the employee an opportunity to respond. If the dismissal is ruled unlawful, the employee can be reinstated or compensated. Job security is significantly stronger than in many other countries.
9. Meal Allowances Are a Standard Benefit.
Most workers receive a daily meal allowance called subsídio de alimentação. It can be paid through a card, voucher, or cash. This allowance receives favorable tax treatment, which makes it a standard benefit across many companies. The amount often increases slightly each year and helps offset daily meal costs.
10. Portugal Has 13 National Holidays plus Local Ones.
Portugal has one of the highest numbers of public holidays in the European Union. There are 13 national holidays, and each municipality may add its own regional holiday. Many workers enjoy days off for city celebrations or local patron saint festivals. Holiday pay for employees who work on these dates is usually higher.
11. Probation Periods in Portugal Are Longer Than Many Expats Expect.
Portugal has clearly defined probation periods, and they can be longer than what many expats are used to in other countries. The length of the probation period depends on the type of employment contract and the nature of the position. For permanent contracts, most workers have a probation period of 90 days, but roles that require greater technical responsibility can have a probation period of 180 days, and management or senior leadership positions may have a probation period of 240 days. During this initial phase, both the employer and the employee have more flexibility to end the contract without the extended procedures required after the probation period ends. This structure can help companies ensure a good long term fit while still offering employees a clear timeline for when full job protections begin.
12. Sick Leave Is Paid Through Social Security.
If you fall ill, you are entitled to paid sick leave through Portugal’s Social Security system. The amount you receive increases the longer your medical leave lasts. Employees must provide valid medical documentation, and many companies offer supplemental support to minimize income loss. This system provides relief during stressful moments particularly for expats unfamiliar with European social protections.
How Does Portugal Compare to Spain, France, and Italy?
| Category | Portugal | Spain | France | Italy |
|---|---|---|---|---|
| Standard Workweek | 40 hours; many companies use 35 to 38 hours | 40 hours; some sectors 37.5 | 35 hours national standard | 40 hours; some industries shorter |
| Minimum Wage (Monthly, 2024) | €820 | ~€1,134 | ~€1,766 | ~€1,000 |
| Paid Vacation Days | 22 + seniority increases | 22 + seniority increases | 25 + RTT days for many workers | 20 + seniority or sector bonuses |
| 13th/14th Month Salary | Very common | Common in many industries | Not standard | Very common |
| Public Holidays | 13 national + local | 14 national + local | 11 national + many regional | 12 national + regional |
| Parental Leave | Generous and flexible; shared leave encouraged | Generous; strong protections | Very generous; long maternity options | Generous; varies by contract |
| Sick Leave | Paid through Social Security | Paid through Social Security | Paid through national health system | Paid through Social Security |
| Termination Rules | Highly regulated; strong worker protections | Regulated; compensation formulas | Very strict; high job protection | Regulated; strong protections |
| Remote Work Rules | Strong laws; employer must pay expenses; no contact after hours for larger companies | Regulated but less strict | Strong right to disconnect; strict overtime monitoring | Regulated; no universal right to disconnect |
| Meal Allowance | Common and tax friendly | Sometimes provided; not universal | Not standard | Often used in some sectors |
| Digital Nomad Friendliness | Very high; supportive laws | Increasing but mixed | Moderate | Moderate |
Closing Thoughts
Working in Portugal offers a balance of stability, flexibility, and quality of life that appeals to expats from all over the world. The country’s labor laws prioritize worker well being, protect personal time, and support families and remote professionals in meaningful ways. While salaries may be lower than in northern Europe or the United States, the benefits often extend far beyond a paycheck. From long vacation allowances to strong job security and a growing remote work culture, Portugal provides an environment where people can build both a career and a calmer, more fulfilling lifestyle. For anyone considering a move, understanding these laws is the first step toward embracing the rhythms of working life in Portugal.
