Parliament approves increase in overtime pay above 100 hours per year

Portugal’s parliament on Tuesday approved an increase in pay for overtime upwards of 100 hours per year, although the measure still attracted criticism from the Left Bloc (BE) and Communist Party (PCP), who argued that the measure leaves out the overwhelming majority of workers.

The proposal by the governing Socialist Party (PS), which provides for an increase in overtime rates, was approved thanks to PS votes and those of the main opposition, the centre-right Social Democratic Party (PSD), and with the abstention of the BE and PCP, in the working group of the committe on employment, social security and inclusion on labour changes as part of the Decent Work Agenda.

“Overtime work exceeding 100 hours per year is paid at the hourly rate with the following increases: a) 50% for the first hour or fraction thereof, and 75% per hour or fraction thereafter, on a working day; b) 100% for each hour or fraction thereof, on a compulsory or complementary weekly rest day, or on a public holiday,” reads the proposal.

With this measure, the value of overtime pay will increase from 25% to 50% in the first hour or fraction thereof, from 37.5% to 75% per hour or fraction thereafter, on a working day, and from 50% to 100% for each hour or fraction thereof, on a compulsory or complementary weekly rest day or on a public holiday.

The PS proposal, within the scope of the government’s Decent Work Agenda, was approved on its first reading in July, with the debate in committee having begun on 29 November. The new rules are set to come into force early this year.