Seeing your salary shrink at the end of the month is a situation that no worker wants to face, but the truth is that there are cases in which Portuguese law allows for a salary reduction. Although this possibility is exceptional, the Labor Code allows the employer to reduce the amount of salary paid, as long as it respects very specific conditions.
According to Ekonomista, a website specializing in economics and finance, reducing basic salary is, as a rule, illegal, except when it is associated with a proportional reduction in working hours.
In practice, this means that only if the worker agrees to work fewer hours can the boss pay less: any other reduction outside these circumstances may constitute a serious labor infraction.
Reducing salary: what the law says
Article 129, paragraph 1, paragraph d) of the Labor Code is clear regarding the prohibition of unilaterally reducing salary. However, the same diploma makes room for some specific exceptions, which always require agreement and, in certain cases, formal authorization from the competent authorities.
According to Ekonomista, salary can be legally reduced in three situations:
- When it results from a collective labor regulation instrument, such as union conventions or labor agreements that establish temporary cuts;
- When there is an agreement between worker and employer, duly authorized by the Authority for Working Conditions (ACT), in accordance with article 119;
- When the worker goes from full-time to part-time, this implies a proportional reduction in salary and is considered legal.
Outside of these cases, any reduction is considered illegal and punishable, and may result in very serious administrative offences.
What happens if the boss lowers the salary without legal reason
When the company reduces wages without legal framework, the worker has the right to terminate the contract with just cause, as provided for in subparagraph b) of paragraph 2 of article 394 of the Labor Code.
In these situations, it is recommended to file a complaint with the Working Conditions Authority (ACT) or Social Security, which may intervene and sanction the employer.
Ekonomista warns that any attempt at reduction without express agreement and without authorization is considered a serious violation of Portuguese labor law.
Situations in which cuts may arise
Although the general rule is prohibition, there are contexts in which temporary salary reductions can be discussed and applied in a legal and transparent way. The highlights some practical examples:
- Financial difficulties of the company, when there is a recovery plan negotiated with workers;
- Disciplinary proceedings, which may involve financial sanctions;
- Payments of debts or legal compensation owed by the worker to the employer;
- Contractual changes that reduce working hours;
- Internal expenses associated with the use of goods or services provided by the company, such as fuel, telephone or meals.
In any of these scenarios, the cut must be formally communicated and accepted. Otherwise, the act is null and void.
When everyone has to feel the same weight
The experts cited by the same source also point out that, if there is a need to reduce salaries, the measure must cover the entire structure of the company, including management.
Transparency and equality are essential to avoid a climate of demotivation and distrust among workers.
What if it happens to you?
If you notice a reduction in your salary without a valid explanation, you must act immediately. Gather documents, keep previous receipts and contact ACT, which is responsible for verifying whether the employer is complying with the law.
As a last resort, the worker may go to court and demand compensation for amounts unduly withheld.
The conclusion is simple: yes, the boss can reduce your salary, but only in very specific and duly authorized situations. Everything else is illegal and can be challenged.
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