Portugal: Operating a Business in Portugal
Work conditions in Portugal
The Active Population in Figures
2018 | 2019 | 2020 | |
Labour Force | 5,267,812 | 5,288,733 | 5,190,690 |
Source: International Labour Organization, ILOSTAT database
2017 | 2018 | 2019 | |
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
- For Further Information About the Labour Market
-
CES, The Economic and Social Council
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
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Latest Update: July 2024