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Portugal – Employment Terms and Conditions

Working Hours in Portugal

In Portugal, the standard working week is 40 hours, which is usually spread over five days. Employees are entitled to at least one day off per week, which is usually Sunday.

Overtime work is allowed in Portugal, and employees who work beyond their normal working hours are entitled to overtime pay. The rate of overtime pay is usually 1.5 times the normal hourly rate.

Employment Rights and Benefits in Portugal

Portugal has a range of employment rights and benefits in place to ensure that workers are treated fairly and with respect. Some of the key employment rights and benefits in Portugal include:

Annual leave

Employees in Portugal are entitled to at least 22 working days of paid annual leave per year. This entitlement increases to 25 working days after five years of service.

Sick leave


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Employees in Portugal are entitled to a maximum of 30 days of sick leave per year. During this period, the employee is entitled to full pay.

Maternity leave

Female employees in Portugal are entitled to 120 days of paid maternity leave. This leave can be taken before or after the birth of the child.

End-of-service benefits

End-of-service benefits are payments made to employees at the end of their employment contract. The amount of the payment is usually based on the length of service and the employee’s salary.

Pensions

Pensions are mandatory in Portugal, and employers are required to provide their employees with a pension scheme. The schemes are usually based on a defined contribution plan, where both the employer and employee contribute to the pension fund.

Pensions for Expats in Portugal

Expats who work in Portugal are entitled to the same pension benefits as Portuguese citizens. The pension system in Portugal is based on a defined contribution plan, where both the employer and employee contribute to the pension fund.

Expats who have worked in Portugal for at least 15 years may be eligible for a pension when they reach the retirement age. The amount of the pension is usually based on the individual’s average salary and the number of years they have worked in Portugal.

Retirement Age in Portugal

The retirement age in Portugal is 66 years and five months for both men and women. However, there is no mandatory retirement age in Portugal, and individuals can choose to work beyond the retirement age if they wish.

It is important to note that the retirement age may change in the future, depending on the economic and demographic circumstances in Portugal.

Portugal offers a range of employment terms and conditions in place to ensure that workers are treated fairly and with respect. From annual leave to sick leave and pensions, Portuguese law ensures that employees are provided with adequate benefits.

Expats who work in Portugal are entitled to the same pension benefits as Portuguese citizens, and it is important for them to understand their entitlements and obligations under Portuguese employment law to ensure that they are receiving the benefits they are entitled to and complying with their legal requirements as employees or self-employed workers.

The retirement age in Portugal is flexible, and individuals can choose to work beyond the retirement age if they wish. It is important for individuals to plan for their retirement accordingly, whether through a pension scheme provided by their employer or a private pension scheme.

Overall, Portugal offers a range of employment terms and conditions that are designed to protect workers and ensure that they are treated fairly. Expats who work in Portugal can expect to receive similar benefits to Portuguese nationals, and it is important for them to understand their entitlements and obligations under Portuguese employment law.