Severance pay in Portugal
Estimate the gross amounts due when an employment contract ends in Portugal: compensation, notice, untaken leave and the pro-rata holiday and Christmas allowances.
These calculations follow the Portuguese Labour Code (Código do Trabalho) as amended by Lei 13/2023, in force on 10/19/2026.
Amounts are gross, in euros (€), before income tax and social security contributions.
This is an estimate. Collective agreements, the employment contract and individual circumstances can grant more than the statutory minimum; check with the employer, a lawyer or the labour authority before making decisions.
How the Portugal severance calculator works
Compensation under article 366 of the Labour Code applies to collective dismissal, job extinction and unsuitability. It equals 12 days of base pay per year of service until 30 April 2023 and 14 days per year from 1 May 2023, pro rata for months and days. Base pay includes seniority allowances (diuturnidades). The monthly pay used is capped at 20 minimum wages (€ 18,400 in 2026) and the total at 12 months of pay, or 240 minimum wages when the pay is above the monthly cap. The result is a gross estimate.
In collective dismissal, job extinction and unsuitability the employer must give notice of 15, 30, 60 or 75 days, depending on whether the worker has less than 1 year, 1 to 4 years, 5 to 9 years or 10 or more years of service. If the notice is paid in lieu, the calculator adds the corresponding days of pay. When a fixed-term contract expires, the employer owes 24 days of base pay per year of service instead, and no notice pay is added. The amounts are gross estimates.
Whatever the type of termination, the worker is still entitled to some credits. The calculator adds the salary for the days worked in the final month, the leave days due on 1 January that were not taken, valued at the monthly pay times 12 divided by 260 per day (article 271), and the pro-rata leave pay, holiday allowance and Christmas allowance for the months worked in the year of termination. All amounts are gross estimates before tax and social security.
This is a simplified estimate. It does not apply the older regimes for contracts that began before October 2013, and it ignores compensation for unlawful dismissal, which a court sets case by case. Collective agreements and the employment contract may grant more than the statutory minimum, and the holiday allowance paid earlier in the year is assumed to have been settled already. Amounts are gross, before income tax and social security. Confirm the result with a lawyer, an accountant or the labour authority (ACT) before relying on it.