Portugal flag Portugal: Operating a Business in Portugal

Work conditions in Portugal

The Active Population in Figures

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

Source: International Labour Organization, ILOSTAT database

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

Employed Persons, by Occupation (% of Total Labour Force) 2015
Manufacturing 16.9%
Wholesale and retail trade; repair of motor vehicles and motorcycles 15.4%
Human health and social work activities 8.9%
Education 8.4%
Agriculture, forestry and fishing 7.5%
Public administration and defence; compulsory social security 6.7%
Construction 6.1%
Accommodation and food service activities 5.7%
Professional, scientific and technical activities 4.2%
Transportation and storage 3.8%
Administrative and support service activities 3.4%
Financial and insurance activities 2.4%
Information and communication 2.3%
Arts, entertainment and recreation 1.5%
Water supply; sewerage, waste management and remediation activities 0.6%
Real estate activities 0.6%
Electricity, gas, steam and air conditioning supply 0.4%
Mining and quarrying 0.3%
For Further Statistics
Ministry of Labour and Social Security
For Further Information About the Labour Market
CES, The Economic and Social Council

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Working Conditions

Legal Weekly Duration
39 hours
Retirement Age
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

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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.

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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
Unionisation Rate
Labour Regulation Bodies
Ministry of Agriculture
Confederation of Portuguese Agricultural Cooperatives (CONFAGRI)
Portuguese Agricultural Federation
Ministry of Labour

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Latest Update: May 2023