Flash News NA 2025/01/24
Update of subsistence allowances for 2025 (State Budget 2025)
On 16 January, Decree-Law no. 1/2025 was published, changing the remuneration base and updating the remuneration and subsistence allowance rates for the Public Sector, although the private sector uses them as a reference.
Firstly, it is important to clarify what subsistence allowances are, the applicable legislation and in which situations they are paid.
Subsistence allowances correspond to financial support paid by the employer to compensate the employee for expenses arising from travelling, in Portugal or abroad, in a professional context.
The legislation applicable to subsistence allowances in the private sector is based on Decree-Law 106/98, which applies to the Public Sector. However, companies are free to adopt rules and practise different amounts from the established ones.
According to the legislation, there are two types of journeys for which subsistence allowances are paid: daily journeys (which take place over a 24-hour period) and journeys over successive days (which take place over a period of more than 24 hours).
However, workers are only entitled to this support for daily journeys that take place more than 20 kilometres from their usual place of work, and for journeys for successive days, more than 50 kilometres.
We will now look at the reference values for three categories: food, transport and travel in Portugal or abroad, and the updates with the State Budget for 2025:
• Meal allowance
This is established considering the meal allowance in force.
| Payment method | Reference value 2024 | Reference value 2025 |
| Money | 6.00€/day | 6.00€/day |
| Meal card | 9.60€/day | 10.20€/day |
• Transport
A price is set per kilometre travelled, including fuel, tolls and parking. The amount varies according to the transport used. We will focus on the use of own vehicle and public transport, as these are the most common.
| Transport | Reference value 2024 | Reference value 2025 |
| Employee's own vehicle | 0.40€/kilometre | 0.40€/kilometre |
| Public transport | 0.11€/kilometre | 0.11€/kilometre |
• Travelling allowances
In this case, a daily amount is established which can be paid in full or in part, depending on whether the journeys are daily or successive days and the times of departure and arrival.
In other words:
- Daily journeys
In this case and according to the legislation, the amount to be paid by the employer considers the period of the day in which the journey takes place:
• 25%. If it covers, even partially, the period between 1pm and 2pm, to cover lunch expenses
• 25%. If it covers, even partially, the period between 8pm and 9pm, to cover dinner expenses
• 50%. If it involves accommodation (if the employee does not have the means to return home by 10pm)
- Travelling on successive days
In this case, the amount payable by the employer depends on the time of departure and arrival:
On the day of departure
• 100%. If the departure takes place before 1pm
• 75%. If the departure takes place between 1pm and 9pm
• 50%. If the departure takes place after 9pm
On the day of arrival
• 0%. If the arrival takes place 1pm
• 25%. If the arrival takes place between 1pm and 8pm
• 50%. If the arrival takes place after 8pm
On the other days, the amount is paid at 100%.
The table with the maximum reference values for travel allowances in Portugal and abroad is as follows:
| 2024 | 2025 | |||
| National journeys (daily reference value) | Travelling abroad (daily reference value) | National journeys (daily reference value) | Travelling abroad (daily reference value) | |
| Members of the Government | € 69,19 | € 167,07 | € 72,65 | € 175,42 |
| Public Sector workers with salaries above the value of salary level 18 (€1,491.25) | € 62,75 | € 148,91 | € 65,89 | € 156,36 |
| Public Sector workers with salaries between levels 18 and 9 (between €1,491.25 and €1,017.56) | € 51,05 | € 131,54 | € 53,60 | € 138,12 |
| Other workers | € 46,86 | € 111,88 | € 49,20 | € 117,47 |
Regarding tax liability, namely IRS. Subsistence allowances are not considered dependent labour income up to the reference values presented. In other words, if the employer pays the employee an amount higher than the established limit, the difference will be taxed as IRS at the employee's level and must be included on the pay slip.
We conclude that, as a concept, subsistence allowances in Portugal are essential for compensating for unforeseen expenses when travelling for work. They promote mobility and provide a degree of fairness for workers. However, there is room for improvement, especially in terms of updating values, transparency and simplifying the system to make it fairer and more efficient for all parties involved.
Nominaurea has a team with extensive experience in this and other matters that can help you in your company. We look forward to hearing from you!
