Portugal Covid19 - Support for economics and employment

The Portuguese Government has a support to be given to companies that have their head office and activity developed in Portugal to overcome the financial difficulties and the moment of crisis that companies are going through due to the consequences of the Covid-19 pandemic.

Lay off Simplified

Companies that are required to close their facilities and establishments by State of Emergency Legislative Decree by COVID-19 may resort to a simplified Lay Off.

Simplified lay off can be requested for reduction of working hours or suspension of employment contract.

In the event of a reduction in the working hours, the hours worked will be paid 100% by the employer and for the un-worked hours, either by reduction of the day or suspension of the contract, the employer receives compensation corresponding to 2/3 of the gross base remuneration, being 30% in charge of the employer and 70% in charge of social security.

70% of social security support shall be increased to the extent necessary to ensure that the worker receives the gross remuneration of 100%, up to a limit of EUR 1,995.

In addition, the employer has full exemption from the company's social security contributions (23.75%), pays only 11% of workers' social security.

Progressive Support resumes activities

Progressive support for resume of activities can be requested by companies with an decrease in turnover of 25% or more, comparing the month to be requested for support with the same month of the previous year or compared to the monthly average of six months prior to that period.

Support consists of a reduction in working hours, subject to the following limits:


Reduction working hours

≥ 25%


≥ 40%


≥ 60%


≥ 75%

100% from january to april 2021

≥ 75%

75% may and june 2021

Hours worked will be paid 100% by the employer. In cases where companies have 75% or more decrease in turnover, the social security system supports 35% of the amount paid for hours worked.

In the case of unworked hours, the employee receives a compensation payment corresponding to 4/5 of his normal gross remuneration. Of these 4/5 compensation, 30% is supported by the employer and 70% by social security.

70% of social security support will be increased to the extent necessary to ensure that the employee receives 100% gross remuneration, up to a limit of EUR 1,995.

SMEs are exempt from 50% of the company's social security contributions. Instead of paying 23.75%, they pay 11.9% calculated on the amount of the compensation.

Managing partners with management functions, with paid payrolls, registration of social security contributions and with employees in charge, will be able to make use of this support, with reduction limits of working hours from 33% to 60%, up to the limit of the reduction hours of the employees.

MOE support (partners-administrators)

Members of statutory bodies (MOE) may have access to support with a maximum value of EUR 438.81 or EUR 665, depending on the contribution base in the 12 months prior to the application.

The MOE has the right to receive financial support for the duration of the suspension of activities or the closure of facilities and establishments by the State of Emergency.

Forms to apply for or extend these two supports will be available from February 1st to 10th, with reference to the month of January.

Other business support

Rentals help

Non-refundable grants, up to 6 months of rent.

Individual entrepreneurs and companies with a turnover of less than 50M.

Drop in turnover between 25% and 40%: 30% of the rent up to 1,200 euros/month.

Billing drop greater than 40%: 50% of the rent up to 2,000 euros/month.