According to Velocity Global's employment agreement template, when is the salary due in Portugal?

According to the employment agreement template, salary must be paid until the last day of each month in Portugal.

What date does the law specify salary must be paid in Portugal?

Portuguese law does not specify a specific date by which salary must be paid. However, it is generally expected that salary is paid on a monthly basis, typically at the end of the month.

How is salary calculated and what components does it consist of in Portugal?

In Portugal, the monthly salary is calculated by dividing the annual salary by 14 months. Monthly allowances are included as part of this salary. The salary consists of the following components:

• Base salary
• Holiday allowance
• Christmas allowance

Is there a legal obligation to pay salaries in the same month in Portugal?

The law mandates prompt payment either during or immediately following the work period. However, it does not explicitly require that salaries be paid within the same month.

How many salary payments are made per year in Portugal?

In Portugal, there are 14 salary payments made annually. However, these payments are distributed in 12 monthly installments, also known as "twelfths."

Is salary payment monthly and is payment standard at the end of the month in Portugal?

Yes, salary in Portugal must be paid on a monthly basis at the end of the month.

Should the employment agreement specify salary in monthly or annual amounts in Portugal?

In Portugal, the employment agreement should specify the monthly salary. To obtain the monthly salary, the annual salary must be divided into 14 monthly installments. The wording for remuneration in the employment agreement can include both monthly and yearly amounts, but the primary specification should be monthly.

What are the details of the statutory bonuses and 13th/14th-month salary in Portugal, including the local name and payment schedule?

In Portugal, employers must provide statutory bonuses known as the Christmas bonus and the vacation subsidy (commonly referred to as the vacation allowance or holiday bonus).

• The Christmas bonus is equivalent to one month of wages and is required to be paid by December 15. Employees hired partway through the year receive a Christmas bonus proportional to their time of service.

• The vacation subsidy is intended to provide employees with additional funds during their vacation leave and is also typically equal to one month of wages. This bonus is usually paid before the employee goes on vacation leave.

As per our practice, both the Christmas bonus and vacation subsidy are distributed throughout the year in 12 installments. This means supported employees receive a portion of these bonuses monthly, in addition to their regular salary, with each installment being equivalent to 1/12th of the monthly salary.

What is the minimum wage information in Portugal?

Effective January 1, 2025, the monthly minimum wage in Portugal is set at EUR 870.