The Christmas allowance continues to be one of the most sought after topics at this time of year, mainly because it represents an essential reinforcement of families’ budgets in a month marked by increased expenses. Although the general rule seems simple, the dates vary depending on the sector, the employer and even the social protection regime.
According to Executive Digest, a website specializing in economics and finance, Portuguese law leaves no major doubts, but there are relevant differences between workers, pensioners and public servants.
What does the Labor Code say about the payment of the subsidy
The central obligation is in article 263 of the Labor Code: the Christmas bonus must be paid by December 15th. This is the rule for the majority of employees, regardless of the activity carried out or the form of hiring. The allowance constitutes an essential part of the annual remuneration and is proportional to the time actually worked.
According to Executive Digest, the situation is different in the public sector. The General Labor Law in Public Functions determines that the Christmas bonus is processed together with the November salary, which means that State workers receive it earlier than those in the private sector. The same applies to Caixa Geral de Aposentações pensioners, who receive the extra amount with their November pension.
Social Security beneficiaries receive the subsidy together with the December pension, and this year there was a relevant exception due to the calendar.
Who is entitled and how the amount is calculated
The Christmas bonus covers all employees, both in the private and public sectors. Self-employed workers, beneficiaries of occupational illness benefits and anyone under the voluntary social insurance scheme are excluded. In situations of prolonged illness, sick leave or parental leave, the amount may be reduced or proportional to the periods of absence.
The calculation is simple: it corresponds to one month’s salary, or the amount proportional to the months worked. A worker hired in August, with a salary of 1,200 euros, only receives the amount for the period worked between joining the company and December.
According to the publication, the subsidy is subject to autonomous IRS withholding and Social Security contributions, processed separately from the monthly salary to avoid penalties in tax brackets.
Exceptional dates in 2025: anticipation due to holidays
Social Security will bring forward the payment of pensions and Christmas allowances to December 5th, as the usual December 8th coincides with the Immaculate Conception holiday. According to , this anticipation allows beneficiaries to receive payments before a long weekend, ensuring greater stability in the flow of social payments.
In addition to pensions, support such as the Solidarity Supplement for the Elderly, Social Benefit for Inclusion and income support will be paid on the same day. Public administration retirees receive it even earlier, with the subsidy being credited on November 19th, together with the pension.
What changes for pensioners in 2026
The Minister of Social Security indicated that the majority of pensioners will have an increase of 2.79% in 2026, a value influenced by inflation and the legal update formula. According to the publication, around 90% of pensioners, with pensions of up to 1,045 euros, will see an increase close to 0.5 percentage points above expected inflation.
For pensions between 1,045 and 3,135 euros, the update should be around 2.29%, while higher amounts will be 0.25 percentage points below inflation.
Complete installment calendar in December
Social Security released the payment calendar for December, which includes several advances:
On December 3rd: pensions and benefits for occupational diseases.
On December 5th: pensions, Christmas allowance, supplement for the elderly, income support, Social Benefit for Inclusion and reimbursement of funeral expenses.
On December 16th: family benefits and first payment of unemployment, sickness and parental benefits.
On December 19th: regional pension supplement.
On December 22nd: social insertion income, according to the processing of unemployment, illness and parental benefits, and support for informal caregivers.
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