The Portugal Labour Conditions Authority (ACT) has clarified a fundamental employment right: workers are entitled to full normal salary during vacation periods, plus a separate holiday allowance. This is a legally guaranteed payment under Article 264 of the Portugal Labour Code, and failing to comply qualifies as a "very serious" administrative offense.
What You Are Owed During Vacation
When you take vacation days in Portugal, your employer must pay you as though you were actively working. This includes your base salary plus any regular performance-linked payments that reflect your specific job duties. On top of this, you receive a holiday allowance (subsídio de férias) calculated at the same rate, covering at least the minimum 22 working days of annual leave.
The holiday allowance must be paid before vacation starts, unless you have a written agreement stating otherwise. If you split your vacation into separate periods, the allowance should be paid proportionally before each segment.
Violating these payment rules is classified as a contraordenação muito grave — the most severe category of administrative infraction under Portuguese labor law.
Why This Matters
• Payment timing: Holiday allowance must reach your account before you leave for vacation, not afterward.
• Legal requirement: The right to full salary plus allowance during vacation is non-negotiable under Portuguese law.
• Employment protection: These rights apply to anyone working under a Portuguese employment contract, whether you are a local resident, EU national, or expat on a work visa.
The 22-Day Standard
Portugal's baseline vacation entitlement remains 22 working days per year, vesting on January 1 and tied to the previous year's work. In your first year of employment, you accrue 2 working days per full month worked, up to a maximum of 20 days, which can only be taken after completing 6 months — unless your contract says otherwise.
Some workers enjoy more than 22 days through collective bargaining agreements or individual contracts.
Impact on Residents and Expats
Anyone working under a Portuguese employment contract — whether a local resident, EU national, or expat on a work visa — is protected by these rules. Digital nomads and remote workers with Portuguese employer contracts are also covered, provided their arrangement qualifies as dependent employment rather than freelance services.
If your employer is not paying your holiday allowance on time or is not paying your full salary during vacation, you should document the issue and contact ACT for guidance.
How to Calculate Your Entitlement
The ACT maintains a free online simulator (accessible via the agency's official website) that calculates vacation entitlement based on your admission date and contract type. The tool accounts for special cases: fixed-term contracts under 6 months, prolonged absences due to illness or military service, and first-year accrual.
The simulator is based on current legislation and provides indicative results — your specific situation may require review of your contract and any applicable collective bargaining agreement.
What to Do If You Are Not Paid
Document everything: Keep payslips, contracts, and written communications about vacation dates and payment.
Send a formal written notice to your employer requesting payment, keeping a copy for your records.
Contact ACT for guidance and to report the issue if payment is not made. The agency can advise on your options and may conduct an inspection.
Seek legal advice if you need further assistance in protecting your rights.
For employees, the key takeaway is simple: vacation pay is not discretionary. It is a statutory right under Portuguese law, and both your full salary and holiday allowance must be paid before you take your vacation days.
