Per diem in Portugal
Employers in Portugal can grant a daily allowance as compensation for the expenses of meals and lodging when on a business trip. These daily allowances are called per diem.
There is no legislation on per diems specifically applicable to the private sector. Most companies use the standard defined for the public sector as a reference. These standards are set out in Decree-Law No. 106/98 of 24 April, Ordinance No. 1553-D/2008 of 31 December and Decree-Law No. 137/2010 of 28 December.
Per diem are not considered part of an employee’s pay and are thus tax-free up to a certain allowed amount. The maximum tax-exempt limits are the standard of the public sector. The employer can grant per diem higher than the rates below. However, the amount exceeding the rates is then considered part of the employee’s taxable income.
| Maximum limit per day (2024) | ||
| Domestic | Members of the Government and comparable in the private sector (directors/board members) | €69,19/day |
| Other employees | €62,75/day | |
| Abroad | Members of the Government and comparable in the private sector (directors/board members) | €167,07/day |
| Other employees | €148,91/day |
One-day trip
For a day trip, per diems can only be paid if the distance traveled is more than 20 kilometers (from the usual place of work).
The public sector standards also follow the following percentages for one-day trips:
- 25% of the main rate: if the trip takes place (in full or in part) between 1pm and 2pm or between 8pm and 9pm.
- 50% of the main rate: if the trip involves accommodation
Multiple-day trip
For trips of multiple days, this minimum distance is 50 kilometers.
Receiving per diems is limited to 90 consecutive days.
The public sector standards also follow the following percentages for multiple-day trips:
- Day of departure;
- 100%: if the employee departs before 1 pm
- 75%: if the employee departs between 1 pm and 9 pm
- 50%: if the employee departs after 9 pm
- Day of arrival
- 0%: if the employee arrives before 1 pm
- 75%: if the employee arrives between 1 pm and 8 pm
- 50%: if the employee arrives after 8 pm