Leave Policy in Portugal

Portugal's leave framework is governed by the Portuguese Labour Code (Código do Trabalho). Employers hiring in Portugal must understand the statutory entitlements that apply to every employment contract.

• Employees receive a minimum of 22 working days of paid annual leave after completing one year of service.
• Parental leave spans 120 to 180 days, paid by Social Security at rates between 80% and 100% of salary.
• Fathers receive 28 mandatory working days of paternity leave, compensated at 100% by Social Security.
• Portugal observes 13 national public holidays each calendar year.
• Sick leave is paid from day four onward by Social Security at 55% to 75% of the employee's reference remuneration.

Gloroots supports companies employing workers in Portugal through its Global Employer of Record (EOR) service, providing local execution and centralized governance of leave compliance obligations.

Leave Policy at a Glance

Overview and Legal Basis for Leave in Portugal

Portugal's primary labour statute is the Labour Code (Lei n.º 7/2009, as amended), which sets the statutory floor for all employee leave entitlements. Decree-Law No. 28/2004 governs the benefit rates paid during sick leave. The Social Security framework funds parental and sick leave payments directly to employees, separate from employer payroll.

Statutory minimums apply to every employment contract. Collective agreements and individual company policies may improve on those minimums but cannot fall below them. Employers using how does EOR work arrangements in Portugal must meet statutory floors across all leave categories.

Portuguese law covers the following leave categories:

• Annual leave
• Public holidays
• Sick leave
• Parental leave
• Paternity leave
• Adoption leave
• Bereavement leave
• Marriage leave
• Grandparents' leave
• Extended parental leave
• Urgent family care leave
• Prenatal leave
• Pregnancy loss leave
• Disability child care leave
• Medically assisted procreation leave
• Education and exam leave

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Annual Leave (Earned / Privilege Leave)

Portugal's Labour Code guarantees a minimum of 22 working days of paid annual leave per year after the first year of service. In the first year, employees accrue two days per month of work, up to a maximum of 20 days.

Employees must complete a six-month waiting period before they can take any leave accrued in that first year (Labour Code Article 237). At least 10 consecutive working days must be taken in a single block each year.

The preferred vacation window runs from 1 May to 31 October. Employers and employees may agree to a different period, but the employer sets the final vacation schedule by 15 April each year. Employee preferences are considered, though the employer retains the final decision.

Annual leave expires on 1 January. Any days carried over from the prior year must be used by 30 April. Encashment of unused vacation days is prohibited under Article 238 of the Labour Code. Employees must take all entitled days; they cannot receive a cash payment in lieu of leave.

For a comparison of how annual leave rules differ across EU countries, see the leave policy in Germany.

Public Holidays

Portugal observes 13 national public holidays each year: 10 fixed dates and 3 movable dates tied to the Catholic calendar.

No Mondayisation rule applies. If a public holiday falls on a Saturday or Sunday, the day is lost and no substitute day off is granted.

Each of Portugal's 308 municipalities also observes one additional local public holiday. Key regional dates include Azores Day (24 May), St. Anthony's Day in Lisbon (13 June), St. John's Day in Porto (24 June), Madeira Day (1 July), and Second Christmas Day (26 December).

Working on a public holiday is treated as overtime. The minimum pay rate is 150% of the standard hourly rate, and the employer must grant a compensatory rest day within 3 working days.

This table reflects 2025 dates and is subject to annual review. Municipal holidays vary by location and should be confirmed locally.

Sick Leave

Portugal's sick leave benefit is administered by Social Security under Decree-Law No. 28/2004. The first three days of illness are unpaid. From day four onward, Social Security pays a daily benefit calculated as a percentage of the employee's reference remuneration.

The rate increases with the duration of the absence:

• Days 4 to 30: 55% of reference remuneration
• Days 31 to 90: 60% of reference remuneration
• Days 91 to 365: 70% of reference remuneration
• After 365 days: 75% of reference remuneration

For absences of three business days or fewer, employees may use the SNS 24 self-declaration service. This option is available a maximum of twice per calendar year. Each absence is assessed independently; sick leave does not carry forward.

For absences exceeding three days, a Certificate of Temporary Incapacity for Work (CIT) is required. A doctor issues the CIT and sends it electronically to Social Security. The employee must also present the CIT to the employer directly.

Sick leave rules differ across countries. Employers comparing obligations across jurisdictions can review the leave policy in the UK as a reference point for statutory sick pay structures in another European market.

Casual Leave

Portugal's Labour Code does not define a separate casual leave category. The closest statutory equivalent is urgent and essential family care leave.

This leave grants employees 30 paid days per year to attend to family members under 12, and 15 paid days for family members aged 12 and older. Social Security covers the cost, not the employer directly.

Employers may offer additional discretionary casual leave above this statutory floor through individual employment contracts or collective bargaining agreements.

Maternity Leave

Portugal structures parental leave as a shared entitlement under the Labour Code, not as a separate maternity-only benefit. The initial parental leave (licença parental inicial) is the primary entitlement.

Parents choose between 120 days at 100% pay or 150 days at 80% pay. A sharing bonus applies when each parent takes at least 30 consecutive days exclusively: the total extends to 150 days (120+30) or 180 days (150+30). If the father takes at least 60 consecutive days, the 180-day option is paid at 83% or 90%.

The daily allowance is calculated as R/180, where R equals gross earnings in the first six of the last eight months before leave begins. Holiday and Christmas bonuses are excluded from this calculation. The minimum daily allowance is $16 (€13.93).

Key additional entitlements for pregnant and nursing employees include:

• Two breastfeeding or bottle-feeding breaks per day, up to one hour each, until the child turns one year old
• Exemption from overtime and night work during pregnancy and nursing
• Right to flexible hours and telework for parents of children under three
• Paid time off for all prenatal consultations
• Up to three consecutive days of pregnancy loss leave, available to both parents, with a medical certificate required

Employees must notify the employer in writing within seven calendar days of birth and apply to Social Security within six months. Dismissal of a pregnant or nursing employee requires a prior opinion from CITE (Commission for Equality in Labour and Employment). Dismissal without that opinion is automatically unlawful.

Extended parental leave (licença parental alargada) allows each parent up to three additional months at 25–30% pay (30% for a single parent, 40% if shared). It is available until the child turns six and can be taken full-time, part-time, or in staggered periods.

Paternity Leave

Fathers in Portugal are entitled to 28 mandatory working days of paternity leave, fully paid by Social Security at 100% of their reference salary.

The first 7 days must be taken consecutively, starting immediately after the birth. The remaining 21 days must be taken in blocks of at least 7 consecutive days, all within the mother's 42-day mandatory post-birth period.

An optional 7 additional days are also available, taken within the same 42-day window. All 28 days, plus the optional 7, are paid at 100% and exempt from both Social Security contributions and income tax.

Fathers are also entitled to 3 paid dispensations to accompany prenatal consultations. These rights are statutory and apply regardless of employer discretion. For a comparable framework in another EU country, see the leave policy in Poland.

Adoption and Surrogacy Leave

Employees adopting a child under 15 are entitled to the same initial parental leave structure as biological parents: 120 days at 100% pay or 150 days at 80% pay, funded by Social Security.

When two or more children are adopted simultaneously, an additional 30 days of leave applies per extra child. The child must be under 15 at the time the adoption is granted. Proof of adoption requires a court decision or formal adoption order.

On surrogacy: Portuguese law does not currently recognise commercial surrogacy, and the Labour Code contains no specific surrogacy leave provision. Employers hiring in Portugal should monitor legislative developments on this open item and seek legal guidance where surrogacy arrangements arise.

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Bereavement Leave

Portugal's Labour Code (Article 251) sets tiered bereavement leave based on the relationship to the deceased. Leave begins on the day of death and is fully paid by the employer.

• 20 days: death of a child, stepchild, son-in-law, or daughter-in-law
• 5 days: death of a spouse, partner, parent, or parent-in-law
• 2 days: death of a sibling, grandchild, grandparent, or sibling-in-law

All tiers are statutory entitlements. Employers cannot reduce them through contract or policy.

Other Leave Types

Portugal's Labour Code provides several additional leave categories beyond the core entitlements. Each type has specific eligibility conditions and payment rules.

Grandparents' leave (licença para assistência a neto): Grandparents may take up to 30 consecutive days when a grandchild is born to a parent under 16 who lives in the same household. Social Security pays 100% of the reference remuneration during this period.

Leave for a child with disability or chronic illness: Employees may take up to 6 months of leave, extendable to 4 years. Social Security pays 65% of the reference remuneration. A medical certificate is required for children aged 12 and older.

Medically assisted procreation leave: Employees undergoing IVF or other fertility treatments are entitled to up to 3 days of leave for medical consultations. Employers may request proof of appointments.

Education and exam leave for working students: Employees enrolled in formal education may take unpaid leave to sit exams in up to 4 subjects per year. Leave is taken on the day before or the day of the exam.

Pregnancy loss: Leave entitlements following pregnancy loss are covered under the Maternity Leave section of this guide.

Carry-Forward and Leave Encashment Rules

Annual leave in Portugal expires on 1 January each year under Labour Code Article 238. Any days carried over from the previous year must be taken by 30 April of the following year.

Portuguese law explicitly prohibits encashing vacation days. Employees must take all entitled holiday days in time off. This prohibition applies even when both parties agree in writing, so no contractual clause can override it.

Sick leave does not carry forward. Parental leave and other Social Security-paid leave types do not accumulate as carry-forward entitlements either.

Employers must pay a holiday allowance (subsídio de férias) equal to the remuneration the employee would receive during the leave period. This allowance is paid before the vacation period begins, not at year-end. Tracking these obligations accurately is a common compliance challenge; employer of record software can automate carry-forward calculations and holiday allowance payments to reduce manual error.

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Best Practices for Managing Leave Compliantly in Portugal

Four practices reduce compliance risk when managing leave in Portugal.

• Publish a written vacation schedule by 15 April each year. The Labour Code requires employers to post this schedule so employees know their approved leave dates in advance.
• Document all statutory entitlements in Portuguese. Employment contracts and employee handbooks must state leave rights in Portuguese to be enforceable and clearly understood by employees.
• Keep timestamped records for every leave event. This includes leave requests, approvals, Certificates of Temporary Incapacity for Work (CIT), and Social Security notifications. Accurate records protect the employer in any dispute or audit.
• Review applicable collective bargaining agreements (CCTs) for your sector. Many CCTs set entitlements above the statutory floor, and failing to apply them creates legal exposure.

Gloroots EOR services support compliant employment in Portugal by centralizing contract management, leave tracking, and statutory filings under one governance layer.

Managing Leave Policy in Portugal with Gloroots

Portugal's Labour Code requires employers to track multiple leave types, coordinate Social Security payment flows for sick and parental leave, meet CITE reporting obligations, and account for collective bargaining agreement (CCT) variations by sector.

Gloroots manages this through its Global Employer of Record (EOR) service. The platform tracks leave balances, runs payroll integration for the holiday allowance (subsídio de férias), and supports Social Security notification workflows for each leave type.

For companies hiring in Portugal without a local entity, Gloroots provides entity-free employment with local execution and centralized governance. Compliance & Employment Governance and Workforce Visibility & Reporting are built into the service at predictable, country-specific pricing.

Gloroots EOR services cover the full employment lifecycle, from contracts and statutory benefits to leave tracking and payroll filings, so your team retains control without managing a local entity.

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Frequently Asked Questions About Leave Policy in Portugal

How many days of annual leave are employees entitled to in Portugal?

Employees in Portugal receive 22 working days of paid annual leave after completing one year of service. In the first year, they accrue leave at two days per month, up to 20 days. Employees must wait six months before taking any first-year leave. At least 10 consecutive days must be taken in a single block.

Can employees in Portugal cash out unused annual leave?

No. Article 238 of the Portuguese Labour Code explicitly prohibits encashment of vacation days, even by mutual agreement between employer and employee. Unused leave carried over from the prior year must be taken by April 30 of the following year or it is forfeited.

How does paternity leave work in Portugal?

Fathers in Portugal receive 28 mandatory days of paternity leave, paid at 100% by Social Security. The first 7 days must be taken consecutively immediately after birth. The remaining 21 days must be taken in blocks of at least 7 consecutive days within the mother's 42-day period. Fathers may also take an optional additional 7 days within that same period.

What are the sick leave pay rates in Portugal?

The first 3 days of sick leave are unpaid. From day 4 onward, Social Security pays a percentage of the employee's reference remuneration based on duration: 55% for days 4 to 30, 60% for days 31 to 90, 70% for days 91 to 365, and 75% after 365 days. Employed workers can receive benefits for a maximum of 1,095 days.

How many public holidays does Portugal observe?

Portugal observes 13 national public holidays: 10 fixed and 3 movable, based on the Catholic calendar. Weekend holidays are not moved to Monday, so they are simply lost. Each of Portugal's 308 municipalities also observes one additional local public holiday.

What conditions must be met to qualify for the shared parental leave bonus in Portugal?

Each parent must individually take at least 30 consecutive days of exclusive leave, or two periods of 15 consecutive days, after the mother's mandatory 42 days. Meeting this condition adds 30 bonus days, bringing total parental leave to 150 or 180 days.

What is adoption leave entitlement in Portugal?

Employees adopting a child under 15 receive the same initial parental leave as biological parents: 120 days at 100% pay or 150 days at 80% pay, funded by Social Security. When multiple children are adopted simultaneously, an additional 30 days is granted per extra child.