iGlobal Law

Core Facts

• Population:  10.2M
• GDP:  USD 199 billion
• GDP per head:  USD 22,000
• Workforce:  4.6M
• Unemployment (2017):  10.1%
• Average high skilled monthly wages (2017):  USD 1,490

Regulatory

• Government debt:  130% of GDP
• Personal income tax:  56.5%
• Corporation tax:  21%
• World corruption ranking 2016:  29th Transparency International
• Ease of doing business ranking:  25th Business Freedom Index
• Labour law:  ILO Conventions ratified
• Data protection:  Member of the EU and so recognised as having adequate protection

Portuguese Labour Law has traditionally favoured the employee, in particular the Court system. However, the current economic situation has seen the Government adopt a policy of reducing labour costs to increase employment and improve Portugal’s overall economic performance. In April 2003, the Portuguese parliament approved a Labour Code which replaced most previous individual and collective labour legislation by bringing former provisions together into a single text. Portugal has recently passed further controversial changes to their Labour Code, impacting harshly on employees, in a further attempt to stream-line businesses into more efficient and competitive entities.