Portugal proposes wider pay transparency duties for employers

The draft, published in BTE Supplement No. 26 on 5 August 2026, goes beyond the EU minimum in several areas. It would apply reporting obligations to employers with 50 or more employees, compared with the Directive’s threshold of 100.

What employers need to know

Job applicants would have to receive information on initial pay or the salary range and the applicable collective bargaining agreement before signing the employment contract. Employers could not ask about salary history.

Employees could request, once a year, information on their individual pay level and average pay levels, broken down by gender, for comparable categories of work. Employers would have two months to respond.

Pay structures, levels and progression criteria would have to be objective, gender neutral and accessible. Clauses preventing employees from disclosing their own pay would be void.

Employers would need a formal remuneration policy based on objective criteria and agreed with workers’ representatives.

Reporting and enforcement

Employers with at least 250 employees would report annually from 7 June 2027. Employers with 150 to 249 employees would report every three years from that date, and those with 50 to 149 employees from 7 June 2031.

An unexplained pay gap of at least 5% could trigger a joint pay assessment and corrective measures.

Breaches could lead to administrative offences and, for repeat infringements, loss of public incentives or exclusion from public tenders for up to two years.

What happens next?

The draft is subject to public consultation for 20 days from 5 August 2026. The Government may revise it before submitting it to Parliament. If enacted, the law would enter into force on the first day of the month following publication in the Official Gazette.

Employers should monitor the legislative process and begin assessing whether their pay structures, data and internal procedures could support the proposed information and reporting requirements.

For more information, please contact our Gender Pay Gap team or your usual CMS contact.

Draft law available for consultation: BTE Supplement No. 26