Researched by ExpatMoneyEU Research Team · Last updated 8 November 2026 · Data: Código do Trabalho articles 263–264 (holiday and Christmas subsidies) and Decree-Law 139/2025 (2026 minimum wage €920); employee Social Security 11%
The short answer: Portuguese employees are paid 14 times a year, not 12 — your 12 monthly salaries plus a holiday subsidy and a Christmas subsidy, each worth one full month’s base pay. On a €2,000 monthly base salary with a full year worked, the two subsidies add €4,000 gross (€3,560 after the 11% employee Social Security contribution), making your annual gross €28,000 — a monthly equivalent of €2,333.33. Enter your salary below — the result updates instantly. All figures are estimates, not tax advice.
Calculate your 13th & 14th month pay
| Component | Gross | After 11% SS |
|---|---|---|
| Holiday subsidy (13th month) | €2,000.00 | €1,780.00 |
| Christmas subsidy (14th month) | €2,000.00 | €1,780.00 |
| Total extra pay | €4,000.00 | €3,560.00 |
| Annual gross pay (12 months + extras) | €28,000.00 | — |
| Monthly equivalent over 12 months | €2,333.33 | — |
| Extra per month if paid in twelfths | €333.33 | — |
Note: the subsidies are also subject to IRS income tax, collected through withholding and settled in your annual return, so the “after Social Security” figure is not your final take-home. This calculator is an estimate only — not tax or financial advice.
What this calculator does
Portugal pays salaries in 14 instalments a year. On top of your 12 monthly salaries, the law guarantees two extra payments: the holiday subsidy (subsídio de férias, article 264 of the Labour Code) and the Christmas subsidy (subsídio de Natal, article 263). Each is worth one full month of your base salary — not a bonus, not a gift, but a statutory part of your annual pay. That is why a Portuguese job advertised at “€2,000 a month” is really a €28,000-a-year job, and why comparing a Portuguese monthly salary with a 12-payment salary elsewhere understates it by two months. This calculator prices both subsidies, pro-rates them if you started mid-year, deducts the 11% employee Social Security contribution, and shows both payment styles: two lump sums, or spread across the year in twelfths.
Key fact: Portugal’s national minimum wage in 2026 is €920 gross a month, set by Decree-Law 139/2025 and paid 14 times a year — an annual minimum of €12,880 gross. After the 11% employee Social Security contribution the net minimum is €818.80 a month, and no IRS income tax is withheld at that level in the 2026 tax year.
How to use it in 4 steps
- Enter your gross monthly base salary — your contract base pay, before deductions and before any meal allowance (which does not count toward the subsidies).
- Enter months worked this calendar year — 12 for a full year; fewer if you started mid-year, and both subsidies are pro-rated.
- Choose how the subsidies are paid — lump sums in June and December, or spread in twelfths across all 12 months if you agreed that with your employer.
- Read the table — each subsidy gross and after 11% Social Security, your annual gross, your monthly equivalent over 12 months, and the twelfths figure.
→ How to open a bank account in Portugal as an expat — 2026 step-by-step guide
The formula
Holiday subsidy = monthly base salary × (months worked ÷ 12). Christmas subsidy = monthly base salary × (months worked ÷ 12). Net of Social Security = gross subsidy × (1 − 11%). Annual gross = 12 × monthly base + holiday subsidy + Christmas subsidy (14 × monthly base for a full year). Worked example: €2,000 × 12/12 = €2,000 holiday subsidy; the same €2,000 Christmas subsidy; total extras €4,000 gross; after 11% Social Security (€440) = €3,560; annual gross = 12 × €2,000 + €4,000 = €28,000; monthly equivalent = €28,000 ÷ 12 = €2,333.33. The exact legal basis for a part-year Christmas subsidy is days worked (basic pay ÷ 365 × days worked), so this calculator’s months-based pro-rating is an approximation — your payroll department uses days.
→ Best bank accounts in Portugal for expats — where your 14 payments should land
Worked example: €2,000 a month, full year
| Component | Gross | After 11% SS | When paid |
|---|---|---|---|
| Holiday subsidy (13th month) | €2,000 | €1,780 | Before your main holiday, usually June |
| Christmas subsidy (14th month) | €2,000 | €1,780 | By 15 December |
| Total extra pay | €4,000 | €3,560 | — |
| Annual gross pay | €28,000 | — | 14 payments |
If your employer pays in twelfths instead, the same €4,000 is spread as €333.33 extra each month, so your monthly payslip shows €2,333.33 gross instead of €2,000 — and there are no lump sums in June and December. The annual total is identical either way; only the timing changes.
Extra pay at every salary level in 2026
| Monthly base (€) | Extras gross (€) | Extras after 11% SS (€) | Annual gross (€) | Monthly equivalent (€) |
|---|---|---|---|---|
| €920 | €1,840 | €1,637.60 | €12,880 | €1,073.33 |
| €1,200 | €2,400 | €2,136.00 | €16,800 | €1,400.00 |
| €1,500 | €3,000 | €2,670.00 | €21,000 | €1,750.00 |
| €2,000 | €4,000 | €3,560.00 | €28,000 | €2,333.33 |
| €2,500 | €5,000 | €4,450.00 | €35,000 | €2,916.67 |
| €3,000 | €6,000 | €5,340.00 | €42,000 | €3,500.00 |
The €920 row is the 2026 national minimum wage: €920 × 14 = €12,880 a year. Madeira pays €980 and the Azores €966 a month in 2026, so island workers’ annual minimums are higher. Remember that the subsidies are also subject to IRS income tax through withholding — the “after Social Security” column is not your final take-home, and at higher salaries the IRS bite on a lump-sum month is noticeable because withholding tables treat it as a larger monthly payment.
When are the subsidies paid, and can they be spread monthly?
The Christmas subsidy must be paid by 15 December each year (public-sector workers receive it in November). The holiday subsidy is paid before your main holiday period, usually with the June paycheck. In the private sector, employers may instead pay both subsidies in twelfths — one-twelfth of each subsidy added to every monthly payslip — but only where there is an express agreement between the company and the employee. Part-time workers are covered by the same rules, pro-rated to their hours, and the meal allowance never counts toward the subsidy base. If your contract states a salary “paid over 12 months” with no mention of subsidies, check the wording carefully: Portuguese law still entitles you to the two extra payments unless your contract genuinely folds them into a higher 12-month figure — ask payroll to show you the breakdown before you sign.
→ Free Portugal net salary calculator 2026 — see what the subsidies are worth after IRS
What changes in 2027
The subsidy system itself is fixed in the Labour Code and does not change year to year. What moves is the minimum wage: the government has proposed €970 a month for 2027 in its 2027 State Budget proposal, which would make the annual minimum €13,580 — but the figure is not final until the decree-law is published, usually in December. The 2026 rate of €920 is the one to use for any 2026 calculation. IRS withholding tables are also revised each January, which changes the tax bite on the lump-sum months slightly, so re-check your December payslip against the new tables when they appear.
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Where should your Portuguese salary land?
Fourteen payments a year need a home — open a free euro account before your June holiday subsidy arrives:
Frequently asked questions
They are two extra salary payments every employee is entitled to by law: the holiday subsidy (subsídio de férias) and the Christmas subsidy (subsídio de Natal). Each equals one full month of your base salary, so Portuguese pay is spread over 14 instalments a year instead of 12.
Each subsidy is worth one month of your base salary. On a €2,000 monthly base salary, the holiday subsidy is €2,000 and the Christmas subsidy is €2,000 — €4,000 gross in total, or €3,560 after the 11% employee Social Security contribution, before IRS income tax.
The holiday subsidy is paid before your main holiday period, usually with the June paycheck. The Christmas subsidy must be paid by 15 December each year (public-sector workers receive it in November). Your employer may instead spread both in twelfths across the year if you have expressly agreed to that.
No. Both subsidies are pro-rated to the time you worked in the calendar year. Six months worked means roughly half of each subsidy. The exact legal calculation uses days worked (basic pay divided by 365, multiplied by days worked), so this calculator’s months-based figure is an approximation — your payroll department uses days.
Yes, in the private sector, but only with your express agreement. The subsidies are then paid in twelfths: one-twelfth of each subsidy is added to every monthly payslip, so a €2,000 salary becomes €2,333.33 gross a month and there are no lump sums in June and December. The annual total is identical either way.
Yes. Both subsidies are subject to IRS income tax and the 11% employee Social Security contribution, collected through withholding and settled in your annual return. This calculator deducts Social Security only, so the result is not your final take-home.
The national minimum wage is €920 gross a month in 2026, set by Decree-Law 139/2025 and paid 14 times a year, so the annual minimum is €12,880 gross. After the 11% Social Security contribution the net minimum is €818.80 a month. Madeira pays €980 and the Azores €966.
Annually, always. A €2,000 monthly salary in Portugal is worth €28,000 gross a year (14 payments), not €24,000 — comparing monthly figures alone understates Portuguese pay by two months, and the gap is even bigger against countries that pay 12 or 13 times a year.