Holiday and Christmas Pay in Portugal (Subsídio de Férias e de Natal) Explained

Last updated: 28 September 2026 · By Haider Shah, accounting technician in Portugal

Employees in Portugal receive 14 payments a year: 12 monthly salaries plus two extra ones, the holiday allowance (subsídio de férias) and the Christmas allowance (subsídio de Natal). Both are rights set by law, not bonuses your employer can choose to skip.

Holiday allowance (subsídio de férias)

• Amount: equal to your base salary plus fixed components linked to how you work (for example shift or night supplements). Meal and travel allowances are not included.
• When: normally paid before your holidays start. If you split your holidays, it can be paid proportionally. Many employers simply pay it in June or July.

Christmas allowance (subsídio de Natal)

• Amount: one month of salary.
• When: by 15 December.

Your first and last year

In the year you start or leave a job, both allowances are proportional to the time worked. Example: you start on 1 July with a salary of €1,000. By December you have worked 6 months, so your Christmas allowance is €1,000 × 6/12 = €500.

In your first year you earn 2 working days of holiday per complete month worked, up to 20 days, and you can take them after 6 months of work. The holiday allowance follows the holidays you are entitled to.

What does “duodécimos” mean?

Duodécimos (twelfths) means the extra salaries are split into 12 parts and added to your monthly pay, instead of being paid in two lump sums. This is only possible by agreement between you and your employer. You do not receive more money, only at different times.

Taxes

Both allowances are subject to Social Security (11%) and IRS. The IRS is withheld separately (retenção autónoma), so the extra payment does not push your normal monthly salary into a higher withholding bracket.

When your contract ends

When you leave a job, the employer must pay the proportional holiday and Christmas allowances, plus any holidays you did not take. Check your final payslip carefully. See your rights as a worker.

Frequently asked questions

Do part-time workers get these allowances?

Yes, proportionally to their salary.

Do self-employed workers (recibos verdes) get them?

No. They are rights of employees with a work contract.

Is the holiday allowance paid if I don’t take holidays?

Holidays are a right and must be taken. When a contract ends, untaken holidays and the allowance are paid out.

Official sources

• Santander – Subsídio de férias: quando se recebe e como calcular
• Montepio – Subsídio de Natal: o que diz a lei
• Jornal de Negócios – Duodécimos só com acordo da empresa

This guide is general information, checked against official sources on 28 September 2026. Rules and portals in Portugal change often, so confirm the current rules with the official source before you act. It is not legal advice.