Generalrulesonremuneration

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Agência para o Investimento e Comércio Externo de Portugal

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Labour System 

 

2.1. General rules on remuneration

 

2.1. General rules of remuneration

Remuneration is the benefit to be granted to the employee in exchange for his or her work, pursuant to the terms of the contract, the rules that govern it, or the uses thereof.

 

Remuneration includes the (i) base salary and (ii) other regular and periodic payments made directly or indirectly in cash or in kind to the employee.

The employee’s remuneration may be established in a fixed or a variable amount. It is also possible to establish a mixed (part fixed, part variable) remuneration.

 

Employees are entitled to a Christmas bonus equal to one month's salary, which must be paid until the December 15 of each year.

 

The amount of the Christmas bonus is proportional to the length of service rendered in the specific year, in the following situations:

 

a) Year of employee’s admission;

b) Year of employment contract’s termination;

c) In the event of suspension of the employment contract, unless due to a reason associated to the employer.

 

The employees are also entitled to receive salary during their vacations. The vacation salary shall correspond to the one they would receive if they were actually working.

 

In addition to the vacation salary, the employees are also entitled to a vacation subsidy, which includes the employees’ base salary and other payments given as consideration for the work rendered.

 

Unless agreed otherwise in writing, the vacation subsidy should be paid before the beginning of the vacation period or proportionally if the employ enjoys the vacations in a phased manner.

 

An employee exempt from working schedule is entitled to a specific remuneration, established in collective bargaining regulation, or in its absence, not less than:

 

a) 1 hour of overtime per day;

b) 2 hours of overtime per week if the employee is subject to a work schedule exemption regimen that observes the normal work periods

 

The work schedule exemption’s salary may be waived by the employee with a position on the board or at a senior management level in the company.

Unless governed differently in the collective bargaining agreement applicable, night-time work is regularly paid with a 25% additional charge in relation to the pay due to equivalent day-time work.

 

Overtime is paid at the hourly rate with the following additions:

 

a) 25% for the first hour or a fraction thereof, and 37,5% per hour or a fraction thereafter, on a business day;

b) 50% for each hour or part thereof, on a mandatory or extra day off, or on public holidays.

 

The collective bargaining agreement may set forth higher percentages for overtime payment. However, those percentages will only be applicable from 2014, August 1 onwards. Until then, the employer will only be bound to terms set forth in the general law.

 

Whenever the employee renders overtime on a mandatory day off, he is entitled to a full day of compensatory rest. The collective bargaining agreement may set forth other provisions regarding this matter more favourable to the employees.

 

 

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