Companies will have more time to raise 434 million euros that are still in the Labour Compensation Fund

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Briefings

The Portuguese government announced that companies will receive an additional six months to recover 434 million euros from the Work Compensation Fund (FCT) by December 31, 2026. However, the exact duration of this extension remains undecided, with unions and business confederations opposing it. The minister stated that the decision will be taken 'in the near future' after further negotiation, while other topics like minimum wage adjustments were also discussed but not resolved.

Key points

The Work Compensation Fund (FCT) will allow companies to recover 434 million euros by December 31, 2026, with an additional six-month extension proposed by unions and business confederations.

The minister of Labor confirmed the extension will be decided 'in the near future' after further negotiation, while opposing parties argue against prolonging the deadline.

Context

The FCT was created during the troika period to cover part of dismissal compensation, but since 2024, companies can directly recover accumulated funds. This article reports on the ongoing negotiation regarding the fund's extension and minimum wage adjustments, noting that the government considers the 50 euro minimum wage increase 'acceptable' despite union opposition.

Limitations

The evidence is limited to a single news report from October 2026. The exact duration of the extension is not finalized, and the specific timeline for the decision remains uncertain. The article does not provide details on the negotiation process or the final agreement reached.

Generated by Bittrees-hosted qwen35-2b sha256:aaf42c8b7c3c on 22/10/2026, 02:00:23 UTC. Based on publisher-provided feed evidence; may not cover the full original article. Check the source for details.

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