In Portugal, employees are entitled to 22 working days of paid annual leave per year under the Labour Code (Código do Trabalho). This is one of the higher minimum entitlements in the EU. Employees also receive a holiday subsidy (subsídio de férias) equal to their normal remuneration plus a bonus.

Statutory entitlement

22 working days of paid annual leave per year. Holiday subsidy (subsídio de férias): normal remuneration plus an additional payment equal to the normal remuneration.

Eligibility

All employees are entitled to annual leave. In the first year of employment, leave is 2 days per month worked, up to 22 days. From the second year onwards, the full 22 days are available.

Employer obligations

  • Grant 22 working days of paid annual leave per year.
  • Pay the holiday subsidy (subsídio de férias) — normal remuneration plus an additional payment.
  • Allow the employee to take annual leave during the holiday season (May 1 to October 31) if requested.
  • Pay for unused annual leave on termination of employment.
  • Not require the employee to waive annual leave.
  • Maintain records of annual leave taken by each employee.

Employee rights

  • Right to 22 working days of annual leave.
  • Right to holiday subsidy (subsídio de férias).
  • Right to take annual leave during the preferred season if requested.
  • Right to paid leave payout on termination.

Common pitfalls

  • Not paying the holiday subsidy — this is a mandatory entitlement in addition to normal holiday pay.
  • Not pro-rating leave in the first year — new employees receive 2 days per month worked.
  • Not allowing preferred leave timing — employees have the right to request leave during the holiday season.

How annual leave accrues in the first year

In the first year of employment, employees earn 2 days of leave per month worked, up to a maximum of 22 days. From the second year onwards, the full 22 days are available from January 1.

Holiday subsidy

Employees receive a holiday subsidy equal to their normal remuneration plus an additional payment equal to the normal remuneration. This is typically paid before the employee takes their leave.

Leave scheduling

Employees can request leave during the holiday season (May 1 to October 31). The employer must consider these requests but can refuse for operational reasons.

Frequently asked questions

Can annual leave be carried forward?

Unused annual leave can be carried over to the next year only in specific circumstances (e.g. illness). Otherwise, leave must be taken within the calendar year.

Is the holiday subsidy taxed?

Yes, the holiday subsidy is subject to income tax and social security contributions.

What happens to unused leave on termination?

Unused annual leave and the corresponding holiday subsidy must be paid out on termination.

Sources

This page is provided for general guidance and does not constitute legal advice. Always check the cited primary source for current law before making employment decisions.