Skip to content
Calculadora Capital

Lay-off Pay Calculator

Has your employer entered lay-off? While your hours are reduced or your contract is suspended you are entitled to a guaranteed monthly amount: two thirds of your gross salary, with a minimum of €920 and a maximum of €2,760 in 2026. This calculator shows what you receive per month, how much you lose against your salary and which part is paid by the employer and by Social Security.

Enter your monthly gross salary (normal gross pay) and the modality. Under reduced hours, enter the percentage of the normal schedule you keep working; those hours are paid by the employer as normal salary.

You receive per month (gross)
€1,000.00
Pay for worked hours plus compensation pay
Monthly loss vs your salary
€500.00
33.3% less than the normal salary
Guaranteed monthly amount (art. 305)€1,000.00
Compensation pay (compensação retributiva)€1,000.00
Paid by the employer (30%)€300.00
Paid by Social Security (70%)€700.00
Total received in the month€1,000.00
Loss vs the normal salary€500.00

Gross values: the compensation pay is subject to IRS withholding and the 11% employee Social Security, like the salary.

Estimate under the general Labour Code regime (articles 298 and following). It does not cover the exceptional simplified lay-off regimes (with their own percentages and funding splits) or the effect of income from other work during the measure, which counts towards the limits.

Educational estimate, not advice. The two-thirds rule, the €920 and €2,760 limits and the 30%/70% split are official for 2026. Always confirm your situation with your employer and Social Security.

What the lay-off is

The lay-off is a temporary measure in the Portuguese Labour Code (articles 298 and following) for companies in business crisis, for market, structural or technological reasons, or after a catastrophe or similar event that severely hits the activity. The employer may reduce working hours or suspend contracts to avoid dismissals. It is not a dismissal: the contract stays alive and the worker returns when the measure ends.

What you receive: the two-thirds rule

During the lay-off you are entitled to a monthly minimum equal to two thirds of your normal gross pay, with two limits in 2026: never less than the national minimum wage, €920, and never more than three times it, €2,760 (article 305(1)). Minimum-wage workers receive their full salary; for higher salaries, the two thirds are capped at the ceiling.

Who pays: 30% the employer, 70% Social Security

The compensação retributiva (compensation pay) is paid 30% by the employer and 70% by Social Security (article 305(4)). In practice you receive everything together, through the employer, which is then reimbursed for the Social Security share. Under the reduced-hours modality, the hours you keep working are paid by the employer as normal salary.

Suspension or reduced hours

The lay-off has two modalities. Under suspension, you do not work and receive the guaranteed amount in full as compensation pay. Under reduction, you receive the pay for the hours you work and, if that falls short of the guaranteed amount, a compensation payment that tops up the difference. If the worked hours already pay the guarantee or more, there is no compensation.

How long it can last and job protection

The measure may not exceed six months, or one year in case of catastrophe, extendable for a maximum of six months (article 301). During the lay-off and in the 30 or 60 days that follow, depending on the measure’s duration, the employer may not terminate a covered worker’s contract through collective dismissal or job extinction (article 303).

Deductions and the rights you keep

The compensation pay is employment income: it pays income tax (IRS), per the withholding tables, and the 11% employee Social Security, like the salary. You keep the right to holidays and to the full holiday and Christmas bonuses; under suspension, Social Security bears half of the Christmas bonus corresponding to the compensation (article 306). You may also work for another employer during the lay-off, informing your employer; that income counts towards the limits and may reduce the compensation.

Exceptional regimes are a different thing

In moments of crisis the Government sometimes creates simplified lay-off regimes, temporary and with their own rules, such as the pandemic one in 2020 or the 2026 regime for the areas hit by storm Kristin (Decree-Law 31-C/2026), with different percentages and funding splits. This calculator applies the general Labour Code regime; if your employer is under an exceptional regime, check that law’s rules.

Worked example

Imagine a €1,500 gross salary and a suspended contract. The guaranteed amount is two thirds: €1,000 a month, above the €920 minimum. The employer pays €300 and Social Security €700, but you receive it all together, through the employer. Against your salary, you lose €500 gross a month (33.3%). If instead of suspension your hours are cut in half, you receive €750 for the worked hours plus €250 of compensation pay: the same €1,000 in total.

Frequently asked questions

What is the lay-off in Portugal?
A temporary measure in the Labour Code (articles 298 and following) that lets a company in business crisis reduce working hours or suspend contracts to avoid dismissals. The employment contract stays alive; the worker receives a guaranteed monthly amount and returns to work when the measure ends.
How much do you receive during a lay-off?
Two thirds of your normal gross pay, with a minimum of €920 (the 2026 national minimum wage) and a maximum of €2,760 (three times it). On a €1,500 salary you receive €1,000 a month; on €1,200, you receive €920 (the floor); on €4,500, €2,760 (the ceiling).
Who pays the salary during the lay-off?
The compensation pay is paid 30% by the employer and 70% by Social Security (article 305(4) of the Labour Code). The worker receives everything through the employer. Under the reduced-hours modality, the hours actually worked are paid by the employer as normal salary.
Can I be dismissed during the lay-off?
During the lay-off and in the 30 or 60 days that follow, depending on the measure’s duration, the employer may not terminate a covered worker’s contract through collective dismissal or job extinction (article 303). If a dismissal happens later, you keep the normal rights: severance and, if you qualify, unemployment benefit.
Does the lay-off pay income tax and Social Security?
Yes. The compensation pay is employment income (category A): it is subject to IRS withholding per the tables and pays the 11% employee Social Security, like the rest of the salary. The figures in this calculator are gross.
Do I receive the holiday and Christmas bonuses during a lay-off?
Yes, in full. The lay-off does not remove the right to holidays or to the bonuses. Under contract suspension, Social Security bears half of the Christmas bonus corresponding to the compensation pay, with the employer paying the rest (article 306).
Can I work for another company during the lay-off?
You can, especially under suspension. You must inform your employer of that activity. The income earned outside counts towards the guaranteed amount and the ceiling, so the compensation pay may be reduced accordingly.
How long can a lay-off last?
Under the general regime, up to six months, or up to one year when the reason is a catastrophe or similar event, extendable for a maximum period of six months (article 301 of the Labour Code).

Related calculators & reading

Embed this calculator

Paste this code on your site to show the calculator. It includes an attribution link.

Language
Theme
Colour

Preview

Free to use. The code auto-adjusts its height.

Sources

Author: Thorben Rasmus Idel · Reviewed by: Nahar Geva · Last reviewed: 2026-07-10