The Christmas bonus is mandatory

Yes. It is enshrined in Article 263 of the Portuguese Labour Code (Código do Trabalho). All employees with an employment contract are entitled to a Christmas bonus. The amount equals one month's remuneration (base salary plus other regular and periodic payments).

The meal allowance does not count towards the calculation of the Christmas bonus.

When it must be paid

The law does not set a specific date — it says 'before Christmas'. In practice, 15 December is the deadline used by most companies and stipulated in many collective agreements.

Paying late without justification can be considered a breach of contract.

How to calculate the proportional amount

For employees who have not worked the full year, the entitlement is proportional:

Formula: Bonus = Monthly salary × (months worked ÷ 12)

Example: Employee hired on 1 July with a salary of €900. Months worked until December: 6. Bonus: 900 × (6/12) = €450

For part-time work the calculation is proportional to the contracted hours. To understand how the base salary relates to the minimum wage in 2026, read the dedicated article.

And the holiday bonus

The holiday bonus (subsídio de férias) is different — but equally mandatory. It has the same value (one month's remuneration) and is paid before the holiday period, typically between April and June. Together, the holiday bonus and the Christmas bonus correspond to the 13th and 14th month's salary.

Can it be paid in monthly instalments

Yes — provided it is expressly stipulated in the employment contract or in an agreement with the employee. Without an agreement, the bonus must be paid as a single lump sum.

What happens if you do not pay

Failure to pay is a serious administrative offence. The employee can claim the outstanding amount plus interest, and the ACT (Authority for Working Conditions) can fine the company. Beyond the legal issue, it is one of the most common reasons behind resignations in December — to understand this risk, read what to do when an employee resigns unexpectedly.

How time tracking helps

To correctly calculate the proportional amount (when someone joined or left mid-year) you need to know the exact dates. With Picco, each employee's history is available — from their first working day to the last record on their exit date.