In 2026, workers on sick leave receive a sickness benefit from Social Security, the percentage of which varies according to the duration of the incapacity. The rates are 55% of the reference remuneration for up to 30 days of sick leave, 60% from 31 to 90 days, 70% from 91 to 365 days, and 75% for periods exceeding one year. The benefit is not paid for the first 3 days of incapacity (waiting period), except for specific exceptions such as hospitalisation. The responsibility for payment lies exclusively with Social Security, not the employer, and access to this right requires a qualifying period of 6 months of contributions.

By Hugo Ribeiro, Certified Accountant OCC nº 64356 · HVR Business Consulting · August 2026

Sickness Benefit in Portugal: General Framework and Purpose

The sickness benefit, formally designated as temporary incapacity for work due to illness benefit, is a cash social security payment granted by Social Security. Its main objective is to compensate for the loss of earnings resulting from temporary incapacity for work due to illness. This support is fundamental to ensuring the social protection of workers, allowing them to focus on their recovery without the additional burden of a total loss of income.

Portuguese legislation provides a set of conditions and rules for accessing and calculating this benefit, which must be known in detail, both from the worker's and the employer's perspective. The rules applicable in 2026 maintain the basic structure of previous years, with specific updates reflecting the country's social and economic policies.

It is crucial to understand that the sickness benefit is part of the general social security scheme, financed by contributions from workers and companies. Its management and payment are the responsibility of the Instituto da Segurança Social, I.P. (ISS, I.P.), through its district centres.

How Much is Received for Sick Leave in 2026: Percentages and Increases

The determination of the daily value of the sickness benefit is based on a percentage of the beneficiary's reference remuneration. This percentage varies according to the duration of the temporary incapacity, encouraging a return to work as soon as recovery allows.

Duration of Sick LeavePercentage of Reference RemunerationUp to 30 days55%31 to 90 days60%91 to 365 days70%More than 365 days75%

These percentages may be increased in specific social protection situations. The most common increase occurs when the beneficiary's monthly reference remuneration is equal to or less than €500 (a value that can be updated annually). In these cases, the percentages of 55% and 60% are increased by 5 percentage points, becoming 60% and 65%, respectively. This measure aims to protect workers with lower incomes, ensuring them more substantial financial support during illness.

Other situations that may entitle to an increase or a more favourable regime include specific risk diseases (such as tuberculosis, where the benefit is 100% of the reference remuneration), or situations of special protection for parenthood, although the latter follow their own benefit regime.

The Waiting Period: The First 3 Unpaid Days

One of the most important features of the sickness benefit regime in Portugal is the existence of a waiting period. As a rule, the benefit is only due and paid from the 4th day of incapacity for work. This means that the first three days of sick leave are not paid by Social Security.

This rule, established in Decree-Law no. 28/2004, of 4 February, in its article 25, aims to discourage short-term and less severe absences, directing resources to more prolonged illness situations. However, there are exceptions to this waiting period, which deserve to be highlighted:

• Hospitalisation: If the incapacity results from hospitalisation, the benefit is due from the 1st day.
• Ambulatory Surgery: Situations involving ambulatory surgery also entitle to the benefit from the 1st day.
• Tuberculosis: In case of incapacity due to tuberculosis, the benefit is paid from the 1st day.
• Relapses of the same illness: If the worker has been discharged from a previous sick leave and, within 60 days, has another sick leave for the same illness, the waiting period may be waived, depending on Social Security's assessment.
• Occupational disease or work accident: In these cases, the applicable regime is that of civil liability or work accident insurance, and not the Social Security sickness benefit. Payment is due from the 1st day by the responsible entity (insurer or employer).

It is fundamental that workers are aware that the employer is also not legally obliged to pay the first three days of sick leave. However, some collective labour agreements (CCT) or company agreements may provide for the payment of a salary supplement or even the full remuneration during this period. Workers should consult their employment contract and the applicable CCT to verify if they are entitled to this additional benefit.

Calculation of Reference Remuneration and Daily Benefit

The reference remuneration (RR) is the basis for calculating the sickness benefit. Its correct determination is crucial to ascertain the daily amount to be received. According to article 26 of Decree-Law no. 28/2004, the reference remuneration corresponds to the total gross remuneration registered with Social Security in the first 6 calendar months preceding the second month prior to the date of commencement of incapacity, divided by 180 (number of days in those 6 months).

Formula: RR = (Total remuneration for the 6 months prior to the 2nd month before sick leave) / 180

Practical Example 1: Short Sick Leave Calculation

• Gross Monthly Salary: €1,200
• Start of Sick Leave: 15 August 2026
• Duration of Sick Leave: 15 days (until 29 August 2026)

For the calculation of the reference remuneration, we consider the 6 months prior to the 2nd month before sick leave. If sick leave started in August 2026, the 2nd month prior is June 2026. Therefore, the 6 months to consider are from December 2025 to May 2026.

• Total remuneration in 6 months (Dec/2025 to May/2026): €1,200 × 6 = €7,200
• Daily Reference Remuneration: €7,200 ÷ 180 = €40/day
• Days Paid by Social Security: Sick leave is 15 days. The first 3 days are not paid. Thus, 15 - 3 = 12 days will be paid.
• Applicable Percentage: For sick leave up to 30 days, the percentage is 55%.
• Benefit Amount: 12 days × €40/day × 55% = €264

This example illustrates how short sick leave can have a significant impact on the worker's monthly income, as the amount received is considerably lower than the normal salary. The worker, in this case, lost the equivalent of 3 days of work (unpaid) and received only 55% of the daily value for the remaining days.

Practical Example 2: Prolonged Sick Leave Calculation with Increase

• Gross Monthly Salary: €480 (less than €500)
• Start of Sick Leave: 10 May 2026
• Duration of Sick Leave: 45 days (until 23 June 2026)

The 2nd month prior to May 2026 is March 2026. The 6 months to consider are from September 2025 to February 2026.

• Total remuneration in 6 months (Sep/2025 to Feb/2026): €480 × 6 = €2,880
• Daily Reference Remuneration: €2,880 ÷ 180 = €16/day
• Days Paid by Social Security: Sick leave is 45 days. The first 3 days are not paid. 45 - 3 = 42 days will be paid.
• Applicable Percentages:
• From 4th to 30th day (27 days): the percentage would be 55%, but since the monthly RR (€16 x 30 days = €480) is less than €500, there is an increase to 60%.
• From 31st to 45th day (15 days): the percentage would be 60%, with an increase to 65%.
• Benefit Calculation:
• Days 4 to 30 (27 days): 27 days × €16/day × 60% = €259.20
• Days 31 to 45 (15 days): 15 days × €16/day × 65% = €156.00
• Total Benefit: €259.20 + €156.00 = €415.20

This example demonstrates the application of increases and the variation of percentages according to the duration of sick leave, which complicates the calculation but aims for greater social equity.

Conditions for Accessing Sickness Benefit (Who is Entitled)

To access sickness benefit, beneficiaries must meet a set of conditions established by law. These conditions aim to ensure that support is directed to those who have effectively contributed to the social security system and are in a duly proven situation of incapacity.

1. Qualifying Period

The qualifying period is the most fundamental condition. The beneficiary must have, at the date of commencement of incapacity, a minimum of 6 calendar months, consecutive or interpolated, with registered remuneration. These months do not need to be consecutive, but there must have been effective contributions to Social Security. This rule is provided for in article 22 of Decree-Law no. 28/2004.

2. Professionality Index (for Employees)

For employees, an additional requirement is demanded: to have 12 days with registered remuneration in the 4 months immediately preceding the month in which the incapacity began. This requirement ensures a more recent and active connection to the labour market and the contributory system. It does not apply to self-employed workers or scholarship holders.

3. Temporary Incapacity Certificate (CIT)

Incapacity for work must be duly proven and certified by a doctor. The Temporary Incapacity Certificate (CIT), commonly known as "sick note", is the official document that attests to this condition. The CIT is issued by a doctor from the National Health Service (SNS) or, in certain circumstances, by doctors from private hospitals with an agreement with the SNS. The communication of the CIT to Social Security is, in most cases, done electronically by the doctor themselves or by the health institution. The worker, however, has the responsibility to inform their employer within a maximum of 5 working days, unless the company already has electronic access to the CIT.

4. Regularised Contributory Situation (for Self-Employed Workers)

Self-employed workers (formerly "trabalhadores a recibos verdes") also have the right to sickness benefit, provided they meet the general conditions and, additionally, have their contributory situation regularised with Social Security. This means they cannot have contribution debts. For self-employed workers, the waiting period is 10 days, instead of the 3 days applicable to employees, as per article 25, no. 3, of Decree-Law no. 28/2004.

5. Residence in National Territory

It is also a general condition for accessing these benefits that the beneficiary resides in national territory, except for exceptions provided for in international social security instruments.

The Role of the Company and its Obligations During Sick Leave

Although the sickness benefit is paid by Social Security, the employer retains a series of obligations and responsibilities during the worker's period of incapacity. It is fundamental for companies to understand these obligations to avoid legal and tax problems.

1. Non-Payment of Salary

During the period of sick leave, the company is not legally obliged to pay the worker's salary, as compensation is ensured by Social Security. However, as mentioned, some collective labour agreements or internal company policies may provide for the payment of a salary supplement, to ensure that the worker receives a higher percentage or even their full remuneration.

2. Suspension or Reduction of Meal Allowance

The meal allowance is intended to compensate for meal expenses on days actually worked. Thus, during sick leave, the worker is not entitled to receive the meal allowance, as they are not providing services. The company must suspend this payment during the period of incapacity.

3. Management of Pro-rata Holiday Entitlement, Holiday Pay, and Christmas Bonus

Sick leave affects the calculation of pro-rata holiday entitlement and holiday and Christmas bonuses. Although the worker retains the right to an annual holiday period, the period of sick leave may not be fully counted for seniority purposes or for the calculation of pro-rata amounts. Labour legislation, namely the Labour Code (Law no. 7/2009, of 12 February), in its article 238, establishes that illness does not suspend the right to holidays, but the period of sick leave may be relevant for the calculation of holiday pay and bonuses.

It is important for the company to rigorously manage these pro-rata amounts, especially in prolonged sick leaves, to ensure compliance with the law and avoid disputes with workers.

4. Communication to Social Security (DMR)

The employer has the obligation to report the worker's absence due to sick leave in the Monthly Remuneration Declaration (DMR). Correct identification of days of absence due to illness is crucial for Social Security to process the benefit and for the company to fulfil its contributory obligations. Errors or omissions in the DMR can lead to discrepancies with Social Security and the application of fines.

5. Maintenance of Employment Relationship

Sick leave does not terminate the employment contract. The contract is suspended during the period of incapacity, maintaining the employment relationship. The employer cannot, as a rule, dismiss a worker who is on sick leave, except for just cause unrelated to the illness.

HVR Business Consulting offers specialised support in payroll processing, ensuring that all legal and tax obligations are met, including the correct management of sick leave and communication to Social Security. Consult our payroll processing services and our guide on Social Security for companies for more details.

Common Mistakes to Avoid in Managing Sick Leave

The complexity of legislation and procedures associated with sick leave can lead to errors on the part of workers and companies. Preventing these errors is fundamental to avoiding problems with Social Security and ensuring correct access to rights.

1. Not communicating sick leave to the company in a timely manner: The worker has a period of 5 working days to communicate sick leave to the employer. Failure to comply with this deadline can lead to sanctions or delays in processing.
2. Not checking the Temporary Incapacity Certificate (CIT): It is crucial that the worker verifies that the CIT has been correctly issued by the doctor and that the data is correct (duration, diagnosis, etc.). Errors in the CIT can delay the processing of the benefit.
3. Working during sick leave: It is strictly forbidden to engage in any professional activity, remunerated or not, during the period of sick leave. Article 36 of Decree-Law no. 28/2004 provides for the cessation of the benefit and the restitution of unduly received amounts in case of non-compliance.
4. Self-employed workers with debts to Social Security: Self-employed workers lose the right to sickness benefit if they have overdue contributions. It is essential to keep the contributory situation regularised.
5. Companies that continue to pay full salary: Some companies, due to lack of knowledge, continue to pay the full salary during sick leave, without considering that the benefit is the responsibility of Social Security. This can generate problems of cost allocation and communication to Social Security.
6. Errors in the DMR: The employer must ensure that sick leave days are correctly marked in the Monthly Remuneration Declaration (DMR). Incorrect indication can lead to discrepancies and regularisation processes with Social Security.
7. Lack of knowledge of increases and exceptions to the waiting period: Both workers and companies should be aware of situations that entitle to benefit increases or the waiver of the waiting period, to ensure that all applicable benefits are enjoyed.

Frequently Asked Questions about Sick Leave in 2026

How much is received for sick leave in 2026?

The value of the sickness benefit in 2026 corresponds to 55% of the reference remuneration for up to 30 days of sick leave. This percentage increases to 60% between 31 and 90 days, 70% from 91 to 365 days, and 75% for sick leave exceeding one year. There are increases of 5 percentage points for monthly reference remunerations equal to or less than €500 in the lower percentages.

Who pays sick leave: the company or Social Security?

Sick leave is paid by Social Security. The company is not legally obliged to pay the salary during the period of incapacity, although some collective agreements or internal policies may provide for the payment of a supplement.

Are the first 3 days of sick leave paid?

As a rule, the first 3 days of sick leave are not paid (waiting period). However, there are exceptions, such as hospitalisation, ambulatory surgery, or tuberculosis, where the benefit is due from the 1st day. For self-employed workers, the waiting period is 10 days.

How many contributions do I need to be entitled to sick leave?

A qualifying period of 6 calendar months, consecutive or interpolated, with registered remuneration for Social Security is required. For employees, it is also required to have 12 days with registered remuneration in the 4 months preceding the start of sick leave.

Are self-employed workers entitled to sick leave?

Yes, self-employed workers are entitled to sickness benefit, provided they meet the qualifying period, the Temporary Incapacity Certificate (CIT) is issued, and their contributory situation with Social Security is regularised. The waiting period for these workers is 10 days.

Does sick leave count towards retirement?

Yes, periods of sickness benefit attribution are considered for the purpose of calculating the old-age pension, as they correspond to periods during which remuneration was registered by Social Security.

Can I be dismissed while on sick leave?

Sick leave suspends the employment contract, meaning the employment relationship is maintained. The employer cannot, in principle, dismiss the worker during this period, unless there is a just cause unrelated to the illness.

Conclusion and Practical Recommendations

The sickness benefit regime in Portugal is an essential part of social protection, aiming to mitigate the financial impact of temporary incapacity for work. Understanding its rules, access conditions, and calculation mechanisms is fundamental both for workers, who need to access this support, and for companies, who must correctly manage their employees' absences and fulfil their legal and contributory obligations.

For workers, the recommendation is to:

• Communicate promptly: Inform the employer and Social Security (if the CIT is not automatic) as soon as possible.
• Keep contributory situation up to date: Especially for self-employed workers, regularisation of contributions is a sine qua non condition.
• Keep all documentation: Retain copies of CITs and any communication with Social Security or the company.

For companies, the recommendations include:

• Understand the legislation: Stay abreast of legislative updates and specific applicable conditions.
• Correctly manage absences: Ensure that attendance records and the Monthly Remuneration Declaration (DMR) accurately reflect periods of sick leave.
• Consult collective agreements: Verify if there are additional obligations for paying salary supplements or other benefits during sick leave.
• Seek specialised support: In case of doubts or to ensure compliance, resort to specialised accounting and consulting services.

Proactive and informed management of sick leave benefits both parties, ensuring worker protection and the company's legal compliance. HVR Business Consulting is available to assist your company in managing these and other accounting and tax matters, ensuring peace of mind and compliance with your obligations.

Do not hesitate to contact HVR Business Consulting for additional clarifications or to request our services.

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Sources and Legal References

• Decree-Law no. 28/2004, of 4 February – Approves the legal regime for protection in the event of illness within the social security contributory subsystem.
• Labour Code (Law no. 7/2009, of 12 February) – Articles 238 (Holidays), 249 (Absences due to illness), among others.
• Ministerial Order no. 30/2007, of 9 January – Regulates the conditions for issuing, transmitting, and archiving temporary incapacity for work certificates.
• Law no. 110/2009, of 16 September – Approves the Code of Contributory Regimes of the Social Security System, namely the articles referring to the declarative obligations of employers.
• Information from the Instituto da Segurança Social, I.P. (ISS, I.P.) – Practical guides and information available on the Social Security portal (www.seg-social.pt) about sickness benefit.