Holiday and Christmas bonuses in Portugal (2026): how much you get and when
Twice a year your payslip gets bigger: the holiday bonus (subsídio de férias) and the Christmas bonus (subsídio de Natal) are each worth roughly one month's salary. Here is when they are paid, how "duodécimos" work and how much tax comes off.
What they are
Employees in Portugal are paid 14 times a year: 12 monthly salaries plus two bonuses. That is why annual salaries are usually quoted as 14 × the monthly figure.
- Christmas bonus (Labour Code, art. 263): one month's pay, due by 15 December. In the year you join or leave the company you get a pro-rata amount.
- Holiday bonus (Labour Code, art. 264): base pay plus allowances tied to the way you work (e.g. shift allowance). Unless agreed otherwise in writing, it is paid before your holidays start — many employers pay it in June or July.
The meal allowance is not included in either bonus; it is paid per working day.
Duodécimos: spreading the bonuses over 12 months
You can agree with your employer to receive the bonuses in twelfths: each bonus is divided by 12 and one slice is added to every monthly payslip. Some people spread both bonuses in full, others only half.
Twelfths do not change your yearly total or your final tax — only the timing of the cash.
How much IRS is withheld
Under art. 99.º-C of the IRS Code, bonuses are withheld separately: your employer applies the withholding table to the bonus on its own, as if it were the only income that month. So a bonus equal to your base salary is withheld exactly like a normal month — it is not added to that month's salary to pick the rate. When paid in twelfths, each slice carries its share of the bonus withholding.
Social Security: 11%
Both bonuses pay 11% employee Social Security, just like your salary. Your employer also pays its 23.75% on top.
Example: €1,500 gross a month
Single, no dependants, Mainland, 2026 withholding tables (Despacho 233-A/2026), no meal allowance:
| Case | Gross | IRS withheld | SS (11%) | Net |
|---|---|---|---|---|
| Normal month | €1,500.00 | €168.17 | €165.00 | €1,166.83 |
| Bonus paid in full | €1,500.00 | €168.17 | €165.00 | €1,166.83 |
| Bonus month (salary + bonus) | €3,000.00 | €336.34 | €330.00 | €2,333.66 |
| Twelfths (2 bonuses ÷ 12) | €250.00 | €28.03 | €27.50 | €194.47 |
| Month with 100% twelfths | €1,750.00 | €196.20 | €192.50 | €1,361.30 |
Over the year it comes to the same: 14 × €1,166.83 = €16,335.62 without twelfths versus 12 × €1,361.30 = €16,335.60 with them (the 2 cents are monthly rounding).
These are estimates using the 2026 withholding tables. Your payslip may differ with dependants, IRS Jovem, other allowances or a married status. Try your own numbers in the salary calculator.
Withholding is not your final tax
Everything withheld during the year is an advance. In next year's IRS return all 14 payments are added up and your tax is recalculated with your deductions. If too much was withheld you get a refund — see the IRS refund guide. For a line-by-line look at your payslip, read the net salary guide.
Freelancers
Self-employed workers (recibos verdes) get no holiday or Christmas bonus, so compare offers on an annual basis. See the freelance tax guide.