Portugal’s labour framework is one of the more protective in the European Union, and its rules on working time, pay and leave are written into the Código do Trabalho (Labour Code) and enforced by the labour authority, ACT (Autoridade para as Condições do Trabalho). Whether you are moving here to take a job, hiring your first employee, or simply trying to understand your payslip, knowing these baseline rights matters — they set the floor that no contract may drop below. Here is a clear, up-to-date overview for 2026. It is general guidance, not legal advice; verify the current position and seek professional counsel for a specific case.
The standard working week: 40 hours
Full-time work in Portugal is defined by two ceilings that apply together: a maximum of 8 hours per day and 40 hours per week, normally spread across five days. These are legal maximums — a collective bargaining agreement or individual contract may set shorter hours, but never longer. The “normal working period” (período normal de trabalho) is the schedule agreed in your contract within those limits.
Some sectors use a bank of hours (banco de horas) or adaptability arrangements that let the weekly schedule flex above or below the average over a reference period, provided the average stays within the legal limit and the arrangement is properly agreed. Any time worked beyond your normal schedule — generally more than 8 hours in a day or 40 in a week — counts as supplementary work, the legal term for overtime.
Overtime (trabalho suplementar) and how it is paid
Overtime is tightly regulated and carries mandatory premiums on top of your normal hourly rate. On a normal working day the first hour or fraction is paid at an extra 25%, and each subsequent hour at an extra 37.5%. Overtime worked on a weekly rest day or a public holiday is paid at an extra 50%. Once an employee works more than 100 hours of overtime in a year, these premium rates increase further.
There are also limits on how much overtime can be required: generally no more than 2 hours per normal working day, and an annual cap (broadly 150 hours a year in larger companies and up to 175 in smaller ones, extendable by collective agreement). An employee who works overtime on a rest day or holiday is usually entitled to a compensatory rest day as well. From 2026 there is also a tax break: a reduced rate of IRS withholding applies to overtime pay to leave more of it in the worker’s pocket — check the current rules with your accountant or payroll.
Rest breaks and daily rest
The Labour Code guarantees minimum rest so that the working day is not open-ended:
- Daily rest: at least 11 consecutive hours between the end of one working day and the start of the next.
- Weekly rest: at least one full day off per week, normally Sunday, often paired with a further half or full day.
- In-day break: the working day must be interrupted by a break — typically for lunch — so that an employee does not work more than five hours consecutively. The break is usually one to two hours and, unless agreed otherwise, is unpaid and not counted as working time.
Night work (broadly the hours between 10pm and 7am) and shift work carry additional protections and, in many cases, extra pay set by law or collective agreement.
Annual leave: 22 days, plus public holidays
Employees are entitled to a minimum of 22 working days of paid annual leave each year, accrued from the start of employment. In the first calendar year, leave typically accrues at two days per full month worked, up to a cap, with the full entitlement available from the second year.
Crucially, public holidays are separate from and additional to annual leave. In 2026 Portugal observes 13 national public holidays, and each municipality also has one local holiday, so most workers get an extra day tied to their town or city. Working on a public holiday, where lawful, is compensated as described in the overtime section.
Pay: the minimum wage and 14 payments a year
The guaranteed minimum monthly wage (Retribuição Mínima Mensal Garantida, RMMG) on mainland Portugal rose to €920 gross on 1 January 2026. Because Portuguese salaries are paid across 14 instalments, that equates to roughly €12,880 a year. After the standard 11% employee social security deduction, the net minimum is around €818.80 per month. (The autonomous regions of Madeira and the Azores set slightly higher regional minimums.)
Those 14 payments are the single most misunderstood feature of Portuguese pay for newcomers. You receive your 12 monthly salaries plus two extra payments, each equal to a month’s pay:
- the holiday bonus (subsídio de férias), and
- the Christmas bonus (subsídio de Natal).
So an advertised “€1,000 a month” is really around €14,000 a year, not €12,000. Some employers spread the two bonuses across the year (duodécimos) rather than paying them as lump sums in summer and December. To see how a gross figure breaks down into take-home pay and the employer’s cost on top, use our net salary calculator.
Social security and what it buys you
Both sides contribute to social security (Segurança Social): the employer pays around 23.75% on top of gross salary and 11% is withheld from the employee. These contributions are not just a deduction — they fund your access to public healthcare support, unemployment benefit, sickness and parental pay, and your state pension. Enrolment is mandatory and must happen before the worker’s first day. For a full breakdown of rates, benefits and how the system works, see our social security in Portugal guide.
Contract types in brief
Your working-time and pay rights are largely the same across contract types, but job security and formalities differ. Portuguese law recognises the permanent contract (contrato sem termo) as the norm, alongside fixed-term (a termo), part-time (a tempo parcial), temporary agency work and remote work (teletrabalho). Part-time employees receive rights and pay proportional to their hours. For the full picture — including probation periods, notice and termination — read our companion guide, employment contracts in Portugal explained.
Other core labour rights
Beyond hours and pay, the Labour Code protects a broader set of entitlements that apply to essentially every employee:
- Protection against unfair dismissal — there is no at-will termination in Portugal; dismissal requires a lawful ground and, for just cause, a formal disciplinary procedure. The employer’s side of this is covered in our hiring and employment law guide.
- Parental leave — generous shared leave around the birth or adoption of a child, with pay from social security.
- Sick leave — job-protected, with social security paying an allowance after a short waiting period.
- The right to disconnect — employers generally may not contact remote or teleworking staff outside working hours, and must respect rest periods.
- Equal treatment and non-discrimination — including equal pay for equal work and protection from harassment.
- A safe workplace — employers must provide safe conditions and, in most cases, mandatory workplace accident insurance.
Where to check the official rules
Because thresholds, premiums and the minimum wage are revised regularly — usually each January — treat any figure here as indicative and confirm the current position before relying on it. The authoritative sources are the labour authority ACT, Segurança Social for contributions and benefits, and the government’s employment portal ePortugal. The 2026 minimum wage was set by the Portuguese Government and announced at portugal.gov.pt.
Disclaimer: This guide is for general information only and is not legal advice. Rules, rates and thresholds change; seek professional counsel for your specific situation.
Hiring in Portugal, or unsure your contracts and payroll are compliant? GrowIN Portugal’s legal and HR advisors can help. See our services or contact us.