The rules on severance pay in detail

Statutory termination pay in Portugal applies in cases of termination at the initiative of the employer.
The current severance amount corresponds to (i) 18 days’ base salary (plus length of service allowances, if applicable) for each year of service for fixed term employment contracts, and (ii) 12 days’ base salary (plus any length of service allowances) for each year of service for permanent employment contracts.

For employment contracts entered into before 1 November 2011, a more favourable regime applies.

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Author: pbbr

Date: December 2018


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