Portugal
Exceptional measure to encourage unemployed young people to return to work
Impact date: 8 October 2025
This measure creates financial support from the Portuguese Employment Institute (“IEFP”) to incentivize young people receiving unemployment benefits to return to work.
The measure is aimed at young people under the age of 30 who are receiving unemployment benefits and who, on the date of signing a new employment contract, are registered as unemployed with the IEFP prior to the publication of the executive order.
To access the support, young people must sign a full-time employment contract after the executive order comes into force, with a duration of six months or more, with an entity that has registered activity in mainland Portugal and complies with Portuguese labor legislation. Certain contracts including those signed with the applicant's last employer, with the applicant’s family members, or with entities in which the applicant or their family are a partner, are not eligible. Eligible applicants receive financial support from the IEFP of a fixed amount and duration as detailed in the measure.
Applications must be submitted within a maximum of 30 consecutive days after the start date of the employment contract. After submission, the IEFP has ten working days to decide on the application. Applications are reviewed and approved in order of “first come first served” and are only granted up to the limit of the budget available for the measure.
Employer implications/action needed N/A
Employer risk N/A
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