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Portugal: Pay and Benefits

Original authors: David Carvalho Martins, António Monteiro Fernandes, Nuno Abranches Pinto and Filipa Lopes Galvâo, Littler | Portugal

Updating authors: Tiago Sequeira Mousinho, Rui Rego Soares and Gabriela Plácido, Littler | Portugal

More new Portugal chapters will be added to the guide soon, including Equal opportunities, Health and safety, and Industrial relations.

Summary

Remuneration includes basic pay and other regular and periodic payments made directly or indirectly in cash or kind, but certain payments are not considered remuneration. (See General)
Employers are required to ensure that the criteria used to set salaries are objective and non-discriminatory. Employees are entitled to request information about pay criteria in cases of unequal pay. (See Pay transparency)
Wages should preferably be paid in cash, although payment by other means is also permitted. (See Payment of wages)
Subject to certain exceptions, employers cannot make any deductions from an employee's remuneration. (See Deductions)
Employers must ensure equal pay for equal work or work of equal value. (See Equal pay)
There is a statutory minimum wage. (See Minimum wage)
The pension system encompasses three types of pensions. (See Pensions)
Employers make social security contributions for their employees through the Single Social Tax. (See Income tax and social security)
If certain requirements are met, employees are entitled to be paid sickness benefits during periods of illness. (See Sick pay)
Employees are entitled to 14 months' pay. One of the additional payments corresponds to the Christmas bonus and the other corresponds to holiday allowances. (See Allowances and bonuses)
Remuneration in kind must satisfy the employee's personal needs and the value cannot exceed the prevailing value in the region where the employee performs their duties. (See Benefits in kind)