Ordinance No. 336/2025/1, which creates the Exceptional Measure to Encourage Unemployed Young People to Return to Work was published yesterday. This measure arises in response to high youth unemployment in Portugal, aiming to promote the rapid reintegration of young people into the labour market, reduce the duration of unemployment and rationalise public spending on social benefits.
High youth unemployment has been one of the main challenges facing the national labour market. Between 2020 and 2024, the average youth unemployment rate in Portugal was 21.44%, well above the European Union average. Despite a slight improvement in 2025, difficulties remain in the sustainable integration of young people into the labour market.
The incentive is aimed at young people under the age of 30 who are receiving unemployment benefits and were registered with the Institute for Employment and Professional Training before the publication of the Ordinance.
To access the support, the young person must enter into an employment contract:
- After the Ordinance comes into force;
- Full-time;
- With a duration of six months or more;
- With entities registered in mainland Portugal and complying with labour legislation.
The support consists of a monthly amount corresponding to 35% of the unemployment benefit for permanent contracts and 25% of the unemployment benefit for fixed-term or indefinite contracts and is granted for the remaining period of unemployment benefit or for the duration of the contract, whichever is shorter. Each young person can only benefit from this support once.
Beneficiaries must maintain the contract for the minimum period required and comply with all conditions during the support period, otherwise they will have to repay the amount received.
This measure aims to encourage young people to actively seek employment and accelerate their professional reintegration, financially compensating those who return to the labour market before the end of their unemployment benefit, thus promoting their integration and reducing the burden of social benefits on the public budget.
The support can be combined with other hiring incentives and social security contribution exemptions provided for in specific legislation.
The measure comes into force on the day following the publication of the ordinance and remains in force until 30 June 2026.
For more information on Ordinance No. 336/2025/1, please consult here.
