Salary Payment Deadline in Portugal (2025 Guide): Legal Facts vs. Common Myths

Many workers and companies in Portugal believe that there is a mandatory fixed date for salary payment. This confusion is understandable but important to clarify: unlike rents, which have a legal deadline until the 8th day, salaries do not follow such a rigid rule.

The question "when can the salary be paid by?" is one of the most frequent in human resources departments and among workers. The correct answer can prevent labor conflicts, sanctions, and ensure compliance with Portuguese legislation.

This guide clearly presents all legal deadlines, worker rights, and company obligations regarding salary payment in Portugal.

What the Labour Code Says About Salary Payment

Portuguese labor legislation establishes clear but often misinterpreted rules about when salaries must be paid. Correctly understanding Article 278 of the Labour Code is essential for companies and workers.

No Mandatory Fixed Date Exists

The first important fact to clarify: there is no specific fixed date established by law for the payment of salaries in Portugal.

This is probably the most surprising information for many. Contrary to popular belief, salaries do not have to be mandatorily paid by the 8th of each month.

This widespread belief mainly stems from the fact that rents have a legal deadline until the 8th, leading to a natural confusion between these two completely distinct deadlines.

What Article 278 Establishes

Article 278 of the Labour Code defines three fundamental principles:

• Periodicity of payment: The remuneration credit matures at certain and equal periods, which, unless otherwise stipulated or customary, are the week, fortnight, and calendar month.

• Time of payment: The remuneration must be paid on a working day, during working hours or immediately following them.

• Availability of the amount: The amount must be available to the worker on the due date or on a previous working day.

How the Specific Payment Date is Determined

In practice, the specific payment date is established through:

• Individual employment contract between employer and worker.

• Collective bargaining agreement (where applicable to the sector or company).

• Company internal regulations.

General rule for monthly payments: The salary must be paid by the last working day of the month, unless another date is specifically agreed upon in the contractual instruments mentioned.

This flexibility allows companies to adapt to their operational realities, but always respecting worker rights and maintaining payment regularity.

Specific Deadlines for Holiday and Christmas Bonuses

Holiday and Christmas bonuses (Subsídios de Férias e Natal) are essential components of remuneration in Portugal but follow different rules from the monthly salary. Knowing these specific deadlines is crucial for financial planning for both companies and workers.

Christmas Bonus: Defined Calendar

The Christmas bonus has well-established legal deadlines that vary according to the sector:

• Private sector: By December 15th of each year. This deadline is mandatory and cannot be changed without agreement between the parties.

• Public sector: During the month of November. State workers receive this bonus earlier than the private sector.

Holiday Bonus: Before the Rest

The holiday bonus follows a different logic, more connected to the timing of holidays:

• General rule: It must be paid before the start of the holidays. This ensures the worker has financial resources available during the rest period.

• Staggered holidays: In case of staggered holiday enjoyment (when holidays are divided into different periods), payment is proportional to each period.

Payment in Twelfths: The Legal Alternative

A less known but perfectly legal possibility exists: the payment in twelfths (duodécimos) for both the holiday and Christmas bonuses.

This system allows the value of the bonuses to be divided throughout the 12 months of the year, integrating them into the monthly salary.

Mandatory requirement: There must be a written agreement between the worker and the employer. It cannot be unilaterally imposed by either party.

This option can facilitate monthly financial planning for both companies and workers.

Monthly Obligations of Companies in Salary Processing

Salary payment is not just about transferring money on the agreed date. Companies have a set of monthly legal obligations ranging from communications to Social Security to submitting tax declarations.

Monthly Obligations Checklist

Companies must comply with a strict schedule of obligations:

• Social Security Communications: Admissions (up to 15 days before the start of activity); Terminations and contractual changes (up to 24 hours after the event).

• Processing and Payment: Process and pay salaries (by the last working day of each month); Deliver pay slips to workers (by the last working day of the month).

• Mandatory Declarations: Remuneration declaration to Social Security (by the 10th of the following month); Monthly declaration to the AT (IRS withheld at source) (by the 10th of the following month).

This schedule requires rigorous organization of human resources departments to avoid non-compliance that can result in significant fines.

Legal Minimum Amounts in 2025

Companies must ensure that no worker receives less than the national minimum wage:

• Mainland Portugal: 870 euros per month.

• Autonomous Region of the Azores: 913.50 euros (a 5% increase over the mainland).

• Autonomous Region of Madeira: 915 euros.

These values represent a 6.1% increase compared to the 820 euros in 2024, reflecting the policy of progressive wage valuation in Portugal.

It is important to note that these are gross values, before Social Security and IRS deductions.

Worker Rights in Case of Late Salaries

Late salaries are a serious situation that grants specific rights to workers. Portuguese law strongly protects workers in these circumstances, establishing clear deadlines and progressive consequences.

Rights After 15 Days of Delay

When the employer does not pay the salary for 15 consecutive days, the worker acquires immediate rights:

• Suspension of the employment contract: The worker can suspend work performance without losing the employment link.

• Mandatory prior communication: They must communicate this decision 8 days in advance to both the employer and the ACT (Authority for Working Conditions).

• Exercise of another activity: During the suspension period, the worker has the right to engage in another paid activity, keeping the original contract suspended.

This measure protects the worker from being without income while awaiting the outstanding payment.

Rights After 60 Days of Delay

If the delay extends for 60 days, the rights significantly expand:

• Termination for just cause: The worker can terminate the employment contract for just cause, attributable to the employer.

• Right to compensation: If the delay is the employer's fault, the worker is entitled to compensation under the law.

• Access to unemployment benefits: Termination in these circumstances guarantees the right to unemployment benefits, as if it were a dismissal.

Additional Judicial Protections

Workers with salaries delayed for more than 15 days can request special protections in court:

• Suspension of fiscal execution on their assets.

• Suspension of the sale of seized property, especially the main residence.

• Suspension of eviction judgment execution for non-payment of rents.

These protections recognize that the lack of salary prevents the worker from fulfilling other financial obligations.

Salary Guarantee Fund

In extreme situations of employer insolvency, there is an additional safety net:

The Salary Guarantee Fund (Fundo de Garantia Salarial), managed by Social Security, guarantees the payment of:

• Outstanding salaries.

• Unpaid holiday and Christmas bonuses.

• Severance pay.

This mechanism ensures that workers are not completely helpless even when the company enters insolvency.

Consequences for the Employer Who Does Not Pay Punctually

The non-punctual payment of salaries is not just a civil matter between employer and worker. It constitutes a serious offense with significant legal, financial, and operational consequences for companies.

Administrative Sanctions and Fines

The lack of punctual salary payment constitutes a serious labor offense (contraordenação laboral grave):

• Very Serious Offenses: Fines can reach up to 61,200 euros, depending on the severity and recurrence.

• Classification: The lack of punctual payment constitutes a serious offense under Portuguese labor legislation.

The ACT has the exclusive competence to inspect and apply these fines, acting on its own initiative or through worker complaints.

Late Payment Interest and Financial Charges

In addition to fines, the company incurs direct financial costs:

• Obligation to pay default interest: On all outstanding amounts, calculated at the legal rate in force or higher if established in a collective agreement or individual contract.

These interests accumulate daily, making each day of delay progressively more expensive for the company.

Operational and Business Restrictions

A company with late salaries faces severe operational restrictions:

• Financial Prohibitions: Distribution of profits or dividends to partners is prohibited; Remuneration of members of corporate bodies (directors, managers) cannot be paid; Purchase and sale of shares and quotas of the company itself are impeded.

These restrictions aim to ensure that the company's resources are primarily channeled to pay outstanding salaries, protecting workers from abusive practices.

ACT's Role in Salary Payment Inspection

The Authority for Working Conditions (Autoridade para as Condições do Trabalho - ACT) plays a central role in ensuring compliance with labor obligations, including punctual salary payment. Understanding how this body works is essential for workers and employers.

ACT Competencies

The ACT has broad powers in the labor field:

• Inspection: It can inspect compliance with payment deadlines in any company, through scheduled or surprise inspections.

• Application of fines: It has exclusive competence to apply fines for non-compliance with labor obligations, including salary delays.

• Issuance of declarations: When requested by workers or courts, it can issue official declarations regarding the existence of salary delays.

How to Contact the ACT

Workers can file complaints about various labor issues (late salaries, non-compliance with contracts, violation of rights, inadequate working conditions).

Complaints can be submitted through the official ACT portal, in person at regional services, or by phone through the support line.

The ACT guarantees confidentiality in complaints, protecting workers from potential retaliation.

Frequently Asked Questions about Salary Payment

By what day is salary payment mandatory in Portugal? There is no mandatory fixed date by law. The salary must be paid by the last working day of the month, unless another specific date is established in the individual contract, collective agreement, or internal regulation.

Is it true that the salary must be paid by the 8th? No. This is a common confusion with the rent deadline. For salaries, there is no legal obligation to pay by the 8th—this is a widespread but incorrect myth.

What can I do if my salary is 10 days late? After 15 days of delay, you can suspend the contract by giving 8 days' prior notice to the employer and the ACT. You can also file a complaint with the ACT immediately, regardless of the deadline.

When should I receive the Christmas bonus? In the private sector, by December 15th. In the public sector, during the month of November. These deadlines are mandatory by law.

And the holiday bonus, when is it paid? It must be paid before the start of the holidays. In case of staggered holidays, payment is proportional to each holiday period.

Can I receive bonuses monthly? Yes, with a written agreement with the employer, it is possible to receive them in twelfths (divided over the 12 months). This option must be clearly documented.

What fines does a company risk if it does not pay salaries on time? Fines for very serious offenses can reach 61,200 euros. In addition to fines, the company must pay default interest and faces operational restrictions.

Can I resign if my salary is late? Yes. After 60 days of delay, you can terminate the contract for just cause, with the right to compensation and unemployment benefits.

What is the Salary Guarantee Fund? It is a fund managed by Social Security that guarantees the payment of salaries, bonuses, and severance pay in case of employer insolvency.

How do I contact the ACT to report late salaries? You can file a complaint through the official ACT portal, in person, or by phone. Complaints are confidential.