Portugal
[Updated 2/24/25] Mandatory employee benefits in Portugal include workers’ compensation, holiday pay, and meal allowances. Supplementary employee benefits in Portugal include company cars, meal allowance cards, childcare vouchers, voluntary benefits, flexible benefits, workplace canteens, bike to work, and gymnasiums.
Country Insight
Mandatory employee benefits in Portugal
Workers Compensation Insurance
All employees are covered for accidents at work, including “in-itinere” (on the road), through insurance coverage. There is no waiting period, and the bases for assessing benefits are:
- For temporary or partial disability greater than 30% – 70% of the value corresponding to the decrease in earnings capacity.
- For temporary total disability – 70% of the gross pensionable salary up to 12 months, then 75%.
- In the case of permanent and absolute disability – 80% of the gross pensionable salary.
- In case of death – 30% of the gross pensionable salary. If it is a spouse or orphan, 20% for one descendant, 40% for two, 50% for three or more.
The payable benefits include:
- Temporary Disability – 70% of the decrease in earnings capacity for the duration of the disability up to a limit of 12 months; 75% from 12 months.
- Permanent Disability – 80% of gross earnings for total disability. Medical treatment, surgery, hospitalization, medicines, appliances, and transport are provided for both temporary and permanent disability.
- Partial Disability – Percentage of the full pension, corresponding to the degree of incapacity. If the disability is below 30%, the amount is converted into a lump sum.
- Spouse’s Pension – 30% of gross earnings for spouse/former spouse. The benefit terminates upon remarriage with a lump sum payment of three times the annual pension. After the age of 65, or in the event of physical or mental disease which affects the ability to work, the above rate is raised to 40%.
- Orphan’s Pension – 20% of gross earnings for one child, 40% for two children, and 50% for three or more children. If both parents are deceased, the rates are doubled, but the total maximum pension is fixed at 80% of gross earnings.
- Funeral Grant – Lump sum payment corresponding to the effective funeral expenses, up to a maximum of four times the minimum salary.
Holiday Pay
All workers are legally entitled to 22 paid holidays per year. In some cases, there are collective labor agreements that establish a higher period of paid holidays (typically 25 days).
Meal Allowance
Employers must pay employees a meal allowance for each workday. This allowance is fully taxable unless it is paid through a card or ticket, which makes these taxes exempt up to a certain limit.
Supplementary employee benefits in Portugal
Company Cars
A small number of employees can be provided with company-financed cars and/or fuel, or an allowance in lieu. In a work environment where employees travel on business, you may see either company cars provided or a car allowance paid.
Meal Allowance Cards
This is a very common benefit due to its tax advantages to both the employee and the employer (tax-free up to €9.60 per day).
Childcare Vouchers
The childcare voucher is an extra-wage benefit that companies offer to cover education expenses for employees’ children under 7 years old who attend nurseries, daycares, or pre-schools. It allows parents to reduce the monthly cost of those establishments, offering families some financial relief. Companies and employees enjoy fiscal advantages when they use childcare vouchers.
Voluntary Benefits
Large and mid-sized employers will often provide employees with a range of voluntary benefits that can be provided at discounted prices through the employer.
Flexible Benefits
Employees can select several types of benefits from a menu, most of them being tax-efficient. Check www.yupii.net/en for further information.
Work from Home
An increasing number of employers were already creating working models that included the possibility of employees working from home, particularly in the technology sector. As a consequence of the COVID-19 pandemic, this trend grew exponentially, and now the vast majority of functions that can be performed that way are.
Transport Passes
This benefit permits employees to receive the value paid in transport passes.
Technology
Some companies provide a technology benefit to compensate employees for technology costs incurred that are related to their professional needs and use as work tools.
The types of eligible expenses are:
- Technological devices like computers, smartphones, or tablets for professional use
- Technological accessories
- Others are to be defined in accordance with the policies of each company
Professional Training
Employees can be compensated for the costs associated with training and professional development related to their professional duties.
Parking Fees
Some employers may cover the expense for employees’ monthly parking spaces when related to their professional duties.
Education Vouchers
The education voucher is an extra-wage or supplementary benefit that can be used to pay for the education expenses of children between 7 and 25 years old, and can be used in:
- Schools, educational establishments, and other educational services
- Courses and training centers
- School supplies, technical books, and other stationery items.
Education Expenses
Paying for education expenses is an extra or supplementary benefit that companies can offer their employees to help cover costs related to their own or their household’s education, for example:
- Tuition fees for schools, training/study centers or universities
- Courses for employees and their families
- School supplies, technical books, and other stationery items
Health and Social Support Expenses
Helping cover the cost of health and social support expenses for an employee’s household is an extra or supplementary benefit a company may offer. This includes the following:
- Medical assistance and medication for employees and their families
- Hospitals, clinics, and laboratories
- Pharmacies and parapharmacies
- Orthopedic, optical, geriatric, and homeopathic stores
- Physiotherapy, occupational therapy, podiatry, psychology, etc.
- Apps for meditation, physical or mental health
Senior Expenses
To help cover the costs of employees’ family members in nursing homes, social care establishments, and medical and medication expenses, employers may offer payment of senior expenses as an extra or supplementary benefit.
Gymnasium and Fitness
Employers may support their employees’ health with an extra or supplementary benefit to help cover the cost of gym fees, fitness centers, sports clubs, extracurricular sports, classes, online gyms, and fitness apps.
This information about employee benefits in Portugal is provided by VISAVIS, Asinta’s employee benefits consulting Partner in Portugal.