Portugal flag Portugal: Operating a Business in Portugal

Work conditions in Portugal

The Active Population in Figures

201820192020
Labour Force 5,267,8125,288,7335,190,690

Source: International Labour Organization, ILOSTAT database

 
201720182019
Total activity rate 74.91%75.39%75.77%
Men activity rate 78.29%78.47%78.69%
Women activity rate 71.76%72.51%73.04%

Source: International Labour Organization, ILOSTAT database

 
For Further Statistics
INE
Ministry of Labour and Social Security
For Further Information About the Labour Market
CES, The Economic and Social Council

Return to top

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

Return to top

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.

Return to top

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
Ministry of Agriculture
Confederation of Portuguese Agricultural Cooperatives (CONFAGRI)
Portuguese Agricultural Federation
Ministry of Labour

Return to top

Any Comment About This Content? Report It to Us.

 

© eexpand, All Rights Reserved.
Latest Update: September 2023