Severance payments in Portugal

Generally, employees are entitled to compensation for termination equivalent to 20 days’ base remuneration plus seniority subsidies (if applicable) for each complete year of service subject to the following caps:

• The total amount of the base remuneration and seniority subsidies to be considered for the purposes of calculating compensation cannot exceed 20 times the minimum statutory salary (minimum statutory salary is currently EUR485).
• Total compensation (statutory) cannot exceed 12 times the employee’s monthly base remuneration (plus seniority subsidies, if applicable) or, where the cap referred to above applies, 240 times the minimum statutory salary.