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Wage Guarantee Fund (FGS) Calculator

Has your employer become insolvent owing you salaries, allowances or severance? The Wage Guarantee Fund (Fundo de Garantia Salarial, FGS) pays those credits with two limits: at most six months of your retribution, and the retribution counted per month never above €2,760 in 2026 (three times the minimum wage), so at most €16,560. This calculator shows what the Fund guarantees in your case and what remains to claim in the insolvency process.

Enter your monthly gross retribution and what the employer owes you, split into salaries, allowances and severance or compensation for the termination. Leave 0 for any amount you do not have.

The FGS guarantees (gross)
€7,200.00
Covers 85.7% of the total owed
Left out of the FGS
€1,200.00
Remains a credit to claim in the insolvency process
Total owed by the employer€8,400.00
Monthly retribution counted (max. 3 × minimum wage)€1,200.00
Global FGS ceiling (6 months of retribution)€7,200.00
Paid by the Wage Guarantee Fund€7,200.00
Not covered by the Fund€1,200.00

The total owed exceeds the legal ceiling of six months of retribution. The excess is not lost: it can still be claimed in the company's insolvency process.

Gross figures: at payment, the Fund deducts the Social Security contributions and the IRS withholding due on each credit.

Estimate under the limits of Decree-Law 59/2015 (article 3), with the 2026 minimum wage (€920). The calculator assumes the amounts entered are within the covered credits: fallen due in the six months before the insolvency, PER or RERE process started or, if there are none, fallen due afterwards, up to the limit. For debts from earlier years the Fund applies the minimum wage in force when the salary should have been paid.

This calculator provides educational estimates and does not constitute financial or legal advice. The final amount is set by the Wage Guarantee Fund when it decides the request.

What the Wage Guarantee Fund is

The FGS is a public fund, run within Social Security, that pays workers the credits arising from the employment contract, its breach or its termination when the employer cannot pay them. It is set out in Decree-Law 59/2015 and implements a European directive protecting workers in employer insolvency. Payment is not automatic: the worker must request it.

When the Fund pays

The Fund steps in when the company’s situation is formalised in one of three processes: the court has declared the insolvency; a judge has appointed the provisional judicial administrator in a special revitalisation process (PER); or the negotiation protocol has been deposited under the out-of-court recovery regime (RERE). Merely having unpaid wages, without one of these processes, is not enough to trigger the FGS.

Which debts are paid

Covered are the credits arising from the employment contract, its breach or its termination: unpaid salaries, holiday, Christmas or meal allowances owed, and the severance or compensation due for the end of the contract or for breach of its conditions. As a rule, credits fallen due in the six months before the insolvency, PER or RERE process started are counted; if there are none in that window, or they fall short of the limit, the Fund may pay credits fallen due after that date, up to the limit.

The two limits: 6 months and three times the minimum wage

The Fund guarantees at most the equivalent of six months of the worker’s retribution, and the retribution counted per month has a ceiling: three times the guaranteed minimum monthly wage, €2,760 in 2026 (3 × €920). The courts settled how these limits combine: the worker is always entitled to six months of retribution, but the monthly value counted is capped at three times the minimum wage. On a €1,200 salary the ceiling is €7,200; on €3,500 only €2,760 per month counts, giving the absolute maximum of €16,560.

What exceeds the ceiling is not lost

The FGS pays up to the ceiling; whatever remains unpaid is still the worker’s credit against the company, to be claimed in the insolvency process, where labour credits enjoy priority over most other creditors. Upon paying, the Fund is subrogated to the worker’s rights, meaning it then collects from the company the amounts it advanced.

The deadline: one year to request

Payment must be requested from the Fund within one year counting from the day after the employment contract ended. This period is suspended by the filing of the insolvency action, the PER or the RERE, until 30 days after the decision becomes final. The request uses form Mod. GS 1-DGSS, filed with Social Security, together with the court (or IAPMEI) certificate stating the amounts claimed.

Deductions at payment

The figures in this calculator are gross. At payment, the Fund deducts the Social Security contributions and the IRS withholding due on each credit, just as if the employer were paying. Severance within the legal limits pays neither IRS nor Social Security, so the effective deduction depends on the composition of the credits. The amount is paid in a single instalment.

Worked example

Imagine a €1,200 gross salary and a company declared insolvent owing 4 months of salaries (€4,800), €1,200 of holiday and Christmas allowances and €2,400 of severance: €8,400 in total. The retribution counted is €1,200 (below the €2,760 monthly cap), so the Fund guarantees at most 6 × €1,200 = €7,200. The FGS pays €7,200 (86% of the debt) and the remaining €1,200 is left to claim in the insolvency process, where it is not lost just because the Fund does not pay it.

Frequently asked questions

What is the Portuguese Wage Guarantee Fund (FGS)?
A public fund, set out in Decree-Law 59/2015, that pays workers the credits from their employment contract (salaries, allowances, severance) when the employer is insolvent or in a recovery process (PER or RERE). The worker must request the payment from Social Security.
How much does the Wage Guarantee Fund pay?
At most six months of the worker’s retribution, and the retribution counted per month never above three times the minimum wage: €2,760 in 2026. The absolute maximum is €16,560 (6 × €2,760). On a €1,200 salary the ceiling is €7,200; whatever the employer owes above the ceiling remains to be claimed in the insolvency process.
Which debts does the FGS cover?
Credits arising from the employment contract, its breach or termination: unpaid salaries, holiday, Christmas and meal allowances, and severance or compensation for the end of the contract. As a rule, credits fallen due in the six months before the insolvency, PER or RERE process started; if there are none in that window, or they fall short of the limit, credits fallen due afterwards count, up to the limit.
What is the deadline to request the FGS?
One year counting from the day after the employment contract ended. The period is suspended by the filing of the insolvency action, the PER or the RERE, until 30 days after the decision becomes final. Do not leave the request to the end: without a request in time, the right lapses.
Does the company need to be declared insolvent?
The Fund only pays when there is a formalised process: an insolvency declaration by the court, the appointment of the provisional judicial administrator in a PER, or the deposit of the negotiation protocol in a RERE. Unpaid wages without one of these processes do not trigger the FGS; in that case the path is to claim the credits in court or to file for the employer’s insolvency.
Does the FGS payment deduct IRS and Social Security?
Yes. At payment the Fund deducts the Social Security contributions and the IRS withholding due on each credit, as if the employer were paying. Severance within the legal limits is exempt, so the effective deduction depends on the composition of the debt. The calculator shows gross figures.
What if the debt is larger than the Fund’s ceiling?
What the FGS does not pay is not lost: it remains the worker’s credit, to be claimed in the company’s insolvency process, where labour credits have priority over most creditors. The Fund, in turn, is subrogated to the amounts it paid and collects them from the company.
Do unpaid wages entitle me to unemployment benefit?
They are different things. The FGS pays the credits the employer owed; unemployment benefit is the monthly Social Security payment after the contract ends involuntarily, with its own conditions. With wages in arrears, the worker may also terminate the contract with just cause and, in that case, qualify for unemployment benefit and compensation.

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Author: Thorben Rasmus Idel · Reviewed by: Nahar Geva · Last reviewed: 2026-07-13