How this works
The current regime (article 366 of the Labour Code) gives you 14 days of base pay plus seniority bonuses for each complete year of service, with partial years counting proportionally. The daily value is monthly pay divided by 30. On top of that you add the proportionals — unused holiday, holiday allowance and Christmas allowance — and pay for days worked in the leaving month.
- 1
Add base pay and seniority bonuses
The maths uses monthly base pay plus seniority bonuses (diuturnidades). It excludes bonuses, meal allowance and overtime.
- 2
Get the daily value and multiply
Divide by 30 for the daily value, multiply by 14 days and by years of service (months count as a fraction).
- 3
Apply the legal caps
Monthly pay used is capped at 20× the minimum wage; the total is capped at 12× monthly pay (or 240× the minimum wage).
- 4
Add the proportionals
Accrued and pro-rata holiday, holiday and Christmas allowances, and the days worked in the last month go into the final settlement.
Frequently asked
Which dismissals does this calculation cover?
The article 366 regime: dismissal for redundancy (extinction of the post), collective dismissal and dismissal for unfitness. It is 14 days of base pay plus seniority bonuses for each complete year of service. It does not cover a disciplinary dismissal for cause attributable to the worker (no compensation) or unlawful dismissal (the court sets that figure, usually much higher). Resignation with just cause by the worker (art. 396) is different and gives 15-45 days per year — not covered here.
Why 14 days? Wasn’t it 12 or 20?
The figure changed over the years. Service rendered up to 31/10/2012 built up 30 days per year; the period from 01/11/2012 to 30/09/2013 counted 20 days; from 01/10/2013 it became 18+12. Law 13/2023 set today’s 14 days. For long contracts the real figure stacks several regimes, period by period — this calculator uses the current 14-day rule, so it is a conservative estimate for anyone hired before 2013.
Is there a cap on the compensation?
Yes, two. The monthly base + seniority pay used in the maths cannot exceed 20 times the minimum wage (in 2026, 20 × €920 = €18,400/month). And the total cannot exceed 12 times monthly pay or, when that first cap bites, 240 times the minimum wage. The calculator applies both ceilings automatically and flags when one of them trims the result.
What goes into the final settlement (proportionals)?
On top of the compensation, your last payslip includes: accrued unused holiday, the matching holiday allowance, and the pro-rata for the leaving year — holiday, holiday allowance and Christmas allowance based on time worked that year. Add the pay for days worked in the leaving month. These are separate from the compensation and stack on top.
Is the compensation taxed?
The compensation part is exempt from income tax up to your average pay over the last 12 months times years of service; above that it is taxed under specific rules. The proportionals (holiday, allowances) are ordinary income and pay tax and usually social security. The calculator shows gross figures — net depends on your situation. Confirm with the tax authority or an accountant.
DISCLAIMER
An estimate, not an official calculation. It uses the current article 366 regime (14 days/year). Contracts started before October 2013 — and especially with service rendered up to October 2012 — built up more days in earlier periods, so your real compensation may be higher; in those cases use the official ACT/Gov.pt simulator. Figures are gross and ignore your income tax and deductions. This is not legal or tax advice.