Portugal: Government introduces an exceptional measure to encourage the return to work for young unemployed individuals

The Ordinance no. 336/2025/1, dated October 7, was published in the Official Gazette, establishing financial support for young people receiving unemployment benefits, with the aim of encouraging active job seeking.

Granting of financial support

This measure is available to young people who enter into an employment contract and, at the date of signing that contract, cumulatively meet the following requirements:

• Are under 30 years of age.
• Are registered as unemployed with the Institute of Employment and Vocational Training, I.P. (IEFP) prior to October 7, 2025.
• Are receiving unemployment benefits.

Eligible employment contracts

To qualify for the measure, the employment contract must cumulatively meet the following conditions:

• Be signed after October 7, 2025.
• Be full-time and have a duration equal to or greater than 6 months.
• Be signed with entities that have registered activity in mainland Portugal and comply with Portuguese labor legislation.
• The job position must be located in mainland Portugal.

The following employment contracts are not eligible for the measure:

• Contracts signed with the young person’s last employer.
• Contracts with a young person who is a partner of the employer or a member of a statutory body.
• Contracts between spouses or people living in a de facto union, or with the spouse of a member of a statutory body or partner of the entity.

Amount and duration of financial support

Young people who meet the access conditions for the measure are entitled to financial support corresponding to:

• 35% of the monthly unemployment benefit amount, if the employment contract is permanent (open-ended); or
• 25% of the monthly unemployment benefit amount, if the employment contract is fixed-term.

The financial support is granted for the remaining period of unemployment benefit entitlement that the young person ceased to receive due to the employment contract. If the employment contract has a shorter duration than this period, the financial support will end when the contract terminates.

Each beneficiary may only benefit from this measure once.

Repayment of support

Failure to comply with the obligations associated with the support requires the total or proportional repayment of the amounts already received.

Termination of the employment contract by resignation, mutual agreement, or dismissal with just cause also requires full repayment of the support received.

However, if the employment contract is terminated at the employer’s initiative, by resignation, or by mutual agreement, there is no obligation to repay the support, provided that the beneficiary presents, within 30 working days from the date of termination, a new employment contract that meets the eligibility requirements.

Cumulation with other measures

This measure is cumulative with the “+Emprego” and “Emprego Interior MAIS” measures, with the “Trabalhar no Interior” program, as well as with the right to partial exemption or total exemption from Social Security contributions.

Application process and non-compliance

Applications must be submitted through the IEFP’s online portal within a maximum of 30 consecutive days from the start date of the employment contract. The application period is also subject to a decision by the IEFP’s board of directors.

Entry into force and duration

The ordinance enters into force on October 8, 2025, and remains in effect until June 30, 2026.