How is overtime paid in Portugal?
Estimate2026 figuresFreeNo sign-up
Example: change the values to see your own case
Gross overtime pay
€54.52
| Your normal hourly rate | €6.92 |
| 1st hour on each working day (3 h at +25.0%) | €25.96 |
| Other hours on working days (3 h at +37.5%) | €28.56 |
| Day off or public holiday (0 h at +50%) | €0.00 |
Mainland Portugal: income tax is lower in the Azores and Madeira · See assumptions ↓
How it was calculated
Hourly rate = salary × 12 ÷ (52 × weekly hours). On a working day, the 1st overtime hour each day gets an extra 25% and the following hours an extra 37.5%. On a rest day or public holiday, an extra 50%. Above 100 hours a year: 50%, 75% and 100%.
Since 2025, IRS (income tax) withholding on overtime is half the normal rate. Your collective agreement may set higher rates.
Frequently asked questions
How much is an hour of overtime paid?
On a working day, plus 25% for the 1st hour and plus 37.5% for the following ones; on a rest day or public holiday, plus 50%.
Is overtime taxed?
Yes, but since 2025 the withholding tax on overtime is halved.