The Labor Decree and Employment Incentives
- 3 days ago
- Reading time: 10 min
News . 17/2026
On May 1, Decree-Law No. 62/2026 came into effect, setting forth urgent provisions regarding fair wages, employment incentives, and combating digital labor trafficking.
There are four employment incentives planned:
Women's Bonus
Youth Bonus
Zes Bonus
Bonus for the conversion of fixed-term contracts
But the most significant change of all is that the measure aims to strengthen the protection of the dignity of work, support stable employment, and ensure fair competition among businesses, primarily by combating the phenomenon of “contractual and wage dumping” and job insecurity. To this end, the concept of the so-called “fair wage” has been introduced.
Eligibility for the bonuses provided is limited to cases where the “individual compensation” is not less than the “total compensation.”
The total compensation is that defined by the national collective bargaining agreement applied by the employer, which must have been entered into by the employer and employee organizations that are comparatively more representative at the national level. If the individual compensation is equal to or greater than the total compensation, the employer is eligible for the bonuses. Otherwise, the employer is not entitled to the incentives.
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