When an employee falls ill and cannot work, they are entitled to sick leave. For the first 3 days, they normally receive nothing (waiting period). From the 4th day onwards, Social Security pays a portion of the salary — the sickness benefit.

How to declare sick leave (current process)

Since 2020, the process in Portugal is essentially digital and automatic:

• The employee sees a doctor (family doctor or a private doctor with a Social Security agreement)
• The doctor issues the Temporary Incapacity Certificate (CIT) in the Social Security system
• The employee notifies the employer of the sick leave (by call, message, or email)
• Social Security automatically notifies the employer — no paperwork delivery needed

Deadline to notify the employer: as quickly as possible, at most on the day of absence or the following day.

Who pays and how much

First 3 days — waiting period

Nobody pays (neither employer nor Social Security). It falls to the employee — unless a collective agreement provides otherwise. Exception: if the sick leave results from hospitalisation, the waiting period is only 1 day.

From the 4th day onwards — Social Security sickness benefit

Sick leave duration: up to 30 days 55% | 31–90 days 60% | 91–365 days 70% | Over 365 days 75%

Reference remuneration: calculated based on the last 6 months of salaries registered with Social Security, divided by 180.

Example: Salary of €1,000/month → daily reference = (1,000 × 6) ÷ 180 = €33.33. 15-day sick leave: 33.33 × 55% × 12 effective days ≈ €219.98

Employer obligations during sick leave

What the company must do:

• Record the absence with the code 'sick leave' (not 'unjustified absence')
• Not deduct holiday days for sick leave days
• Keep the position available

What the company cannot do:

• Dismiss the employee because of sick leave
• Require remote work during sick leave (unless explicitly agreed voluntarily)
• Pressure the employee to return before being clinically fit

Employee obligations during sick leave

Sick leave is not a holiday. The employee must be reachable at their address, attend reassessment appointments, and not engage in professional activity consistent with the declared incapacity. If found working elsewhere during sick leave, they lose the right to the benefit.

Special situations

• Extended sick leave (over 30 days): Social Security may convene a medical review board.
• Medical discharge and return: when the doctor discharges the employee, they must return the following day. Refusal without justification is an unjustified absence. To learn how to manage the return, read what to prepare when an employee returns from extended sick leave.
• Suspicious pattern of sick notes: if an employee presents sick certificates with suspicious frequency, read what to do when an employee is repeatedly on sick leave.

For managers: how to record sick leave correctly

In Picco, sick-leave absences should be marked with the specific code 'sick leave' — not 'absence'. This ensures the monthly report for your accountant correctly reflects each employee's situation.

This article is for informational purposes only and does not replace legal or medical advice.