Portugal Employment Severance Pay (Compensacao) Calculator
Calculate statutory severance compensation (Compensacao por cessacao do contrato de trabalho) under the Portuguese Labor Code (Codigo do Trabalho - Law 7/2009 as updated by the Decent Work Agenda / Agenda do Trabalho Digno), applying the revised 14 days of salary per year of tenure, the 240x minimum wage statutory ceiling, and tax exemptions.
Severance Entitlement Summary
Daily Earnings Rate (Salary / 30): €0.00
Statutory Days per Year of Service: 14 Days / Year
Total Compensable Days: 0 Days
Gross Statutory Severance (Compensacao): €0.00
IRS & Social Security Exemption Status: 100% Tax-Exempt within Statutory Formula!
Net Severance Take-Home: €0.00
Portuguese Labor Code Severance Rules (Articles 366 & 344 CT)
Governed by the Authority for Working Conditions (ACT):
- Decent Work Agenda (May 2023 Reform): For contracts terminated on redundancy grounds, statutory severance was increased from 12 days to 14 days of base pay and seniority allowances per full year of service (fractions prorated). For the expiration of fixed-term contracts (caducidade), the rate was raised to 24 days per year.
- Statutory Ceilings: The daily wage base cannot exceed 20 times the national minimum wage. Total severance cannot exceed 12 monthly salaries or 240 times the national minimum wage (approx. €196,800).
- Tax Exemption (Article 2 CIRS): Severance pay granted strictly within the statutory formula is completely exempt from IRS income tax and Seguranca Social contributions. Only voluntary extra-statutory payments are taxed.
📊 Matriz de Reparticao Legal e Comparativa
| Rubrica / Componente Estatutario | Valor Calculado |
|---|---|
| Resultado Principal / Total Estatutario | 0,00 € |
MS
Engr. Muhammad Shahzad
Principal Financial Systems Architect & Statutory Compliance Specialist
Lead software and systems architect specializing in high-performance browser computing, algorithmic validation, financial models, and zero-telemetry client-side privacy architecture.