Law nr. 11/2013 was published today in the Portuguese official gazette. The present Law establishes a temporary regime of fractioned payment applicable to Christmas and holiday allowances, which will be in force during 2013.

The broad lines of this temporary regime are the following:

Click here to view table.

Observations: The strict and literal interpretation of the number 3 of article 4 (this regime “is not applicable to the holiday allowance related to holidays vested before the coming to force of this Law”) implies that the present Law would only be applicable to the Christmas allowance and the holiday allowance related to vacations vested since January 29, i.e., to the employees admitted for less than 6 months or who shall be admitted until July 2013.

Notwithstanding, considering that the legislator’s intention was only to exclude the holiday allowance related to vacations vested in 2012, one should expect a Rectification Declaration or perform a corrective interpretation.