Work conditions in Portugal

The Active Population in Figures

Working Conditions

Legal Weekly Duration

39 hours

Retirement Age

65

Working Contracts

The work contract is governed by legal provisions and, to a lesser extent, by collective agreements and individual negotiation. Work contracts and hiring/firing conditions are extremely rigid.

Labour Laws

Doing Business: Portugal, to obtain a summary of labour regulations that apply to local entreprises

Cost of Labour

Minimum Wage

EUR 705 per month if based on 14 payments in a year, or EUR 823 based on 12 payments (source: Eurostat, Government of Portugal, 2022)

Average Wage

Gross average monthly wage: EUR 1,250.75 (source: INE-Statistics Portugal, 2020)

Social Contributions

Social Security Contributions Paid By Employers: 23.75% on the monthly gross remuneration of employees, and insurance premium to cover occupational accidents at a rate varying according to risks.
Social Security Contributions Paid By Employees: 11% on the monthly gross remuneration of employees, and insurance premium to cover occupational accidents at a rate varying according to risks.

Social Partners

Employer Associations

IAPMEI - Government Institution for SMEs Support
AEP - Business Association of Portugal
AIP - Portuguese Industrial Association

Social Dialogue and Involvement of Social Partners

There are two major union confederations: the CGTP (very close to the Communist Party) which is typically very critical of and eager to challenge government measures, and the UGT (close to the Socialist Party and the Social-Democrats), a more moderate group. While the UGT also criticises government measures, it often manages to come to a consensus with the government. Negotiations between Employers' Confederations, the Government and Union Confederations usually take place at the Conselho Económico e Social. These discussions take place systematically at the beginning of each year, but also when important dossiers about lab or law are discussed. In recent years, there have been many strikes and demonstrations against government austerity measures and economic policies.

Labour Unions

CGTP
UGT

Unionisation Rate

18.4%

Labour Regulation Bodies

Confederation of Portuguese Agricultural Cooperatives (CONFAGRI)
Portuguese Agricultural Federation