Holiday & Christmas Allowance Calculator 2026
Portugal pays 14 salaries a year: 12 monthly wages plus a holiday allowance and a Christmas allowance, each worth one month of base salary. By agreement, they can be paid in monthly twelfths (50% or 100%) instead of in full. The annual total and the net are the same either way — only the timing changes. Compare the three options in the calculator.
The three payment options
- 14 payments (traditional) — holiday allowance before your holidays; Christmas allowance by 15 December.
- 50% twelfths — half of each allowance monthly (salary ÷ 24 per allowance); the other half on the normal dates.
- 100% twelfths — everything monthly: +1/6 of salary in each month, no extra payments in summer or December.
Legal basis
The Christmas allowance equals one month's pay and must be paid by 15 December; in the year you are hired, the year the contract ends and when the contract is suspended for reasons relating to the worker, it is proportional to time worked (article 263 of the Portuguese Labour Code). The holiday allowance covers base pay plus payments linked to the specific way the work is performed, and is paid before the holidays start unless otherwise agreed in writing (article 264(2) and (3)). That written agreement is what allows payment in twelfths.
For income tax, holiday and Christmas allowances are always withheld separately and never added to the month's salary (article 99-C(5) of the IRS Code); when paid in instalments, each payment bears its proportional share of that tax (article 99-C(6)). Your monthly withholding rate does not go up.
Worked example
On a €1,200 base salary: the traditional model pays €1,200 a month, plus €1,200 before the holidays and €1,200 in December. With 50% twelfths you get €1,300 a month (€50 from each allowance) and €600 on each of the usual dates. With 100% twelfths you get €1,400 a month and nothing extra. In every case the gross annual total is €16,800.
Moving to Portugal? See our relocation tax guide and the net salary simulator.
Frequently asked questions
What are the Portuguese holiday and Christmas allowances?
Two extra salary payments — each worth one month of base salary — making the Portuguese year effectively 14 salaries. The holiday allowance is normally paid before your holidays and the Christmas allowance by 15 December.
What are twelfths (duodécimos)?
Paying the allowances in monthly instalments through the year — half (50%) or all (100%) of each allowance — instead of in full. Each full twelfth equals 1/12 of the base salary per allowance.
Do twelfths change the annual total?
No. The gross annual total is always 14 salaries and the allowances are withheld autonomously, so the annual net is identical — only the monthly distribution changes.
Can I demand payment in twelfths?
No. Twelfths require an agreement between employee and employer, unless the applicable collective agreement says otherwise.
What about the first year of a contract?
In the first year, both allowances are proportional to the time actually worked.