How does overtime work in Portugal?

Article author
Fabi Lopez
  • Updated

In Portugal, the typical work week is based on the Employment Agreement you have. Usually, it's 40 hours per week. Any hours worked beyond the agreed weekly hours are considered overtime.

How do you calculate overtime pay in Portugal?

To calculate overtime pay, you first need to figure out your hourly salary. This is done with the formula: Hourly salary = (Gross monthly salary x 12) / (52 weeks x weekly hours).

Your overtime pay is then based on this hourly rate.

How do employees track overtime in the platform?

You must keep a tracking sheet that shows the days you worked, your start and end times, and any overtime hours. You can use Remote’s Time Tracking for this purpose.

To track overtime in the platform, please check How to track on call hours or overtime hours.

What are the limits on overtime?

The limits for overtime in Portugal are:

  • 2 hours per day
  • 8 hours per week
  • 150 hours per year

How is overtime paid on weekdays?

For the first 100 overtime hours in a year, the pay is the standard hourly rate plus these additional amounts:

  • An extra 25% for the first hour or part of it
  • An extra 37.5% for each subsequent hour or part of it

After you've worked 100 hours of overtime, the rates increase to:

  • An extra 50% for the first hour or fraction of it
  • An extra 75% for each subsequent hour or fraction of it

How is overtime paid on weekends or public holidays?

Before reaching 100 extra hours:

  • You get an extra 50% for each hour or part of it on weekends or public holidays.

After 100 hours of overtime:

  • The rate goes up to 100% for each hour or fraction of it on these days.

If overtime occurs on a Sunday (mandatory rest day) or a public holiday, you are entitled to take equivalent time off within the next 3 days.

Is there a bank of hours system in Portugal?

Bank hours is a system where employees save extra work hours to take time off later. Portugal does not have a bank of hours system, which means there’s no accumulation of hours for later compensation.

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