An exceptional measure has been introduced to encourage young unemployed individuals under 30 to return to the workforce. This initiative targets those registered as unemployed with Portugal’s Institute for Employment and Professional Training (IEFP) and who are receiving unemployment benefits.
Eligible individuals signing contracts after the enactment of this ordinance can receive financial support equivalent to 35% of their monthly unemployment benefit if they secure a permanent job. The support amounts to 25% of the monthly unemployment benefit for fixed-term or uncertain-term contracts.
Qualified candidates must sign full-time contracts lasting at least six months with organizations operating in mainland Portugal, adhering to Portuguese labor laws.
The financial support amount is based on the daily unemployment benefit at the contract’s start date, as stated in the decree signed by the Secretary of State for Employment, Adriano Rafael Sousa Moreira. Beneficiaries can only receive this support once.
Applicants must submit their applications through the IEFP website within 30 consecutive days from the contract start date, being registered on the portal, holding a personal bank account, and complying with both their tax and social security obligations. They must also be free from prior IEFP support violations.
Applications are approved on a first-come-first-served basis, subject to available funding. The IEFP has 10 working days to approve or reject the application once submitted.
This initiative aims to facilitate quick professional reintegration, reduce average unemployment duration, improve placement rates, and contribute to more efficient public spending on social benefits, according to the government.
This measure becomes effective on Wednesday and will remain in place until June 30, 2026.
Portugal’s labor market is approaching full employment, with the unemployment rate dropping to 6.1% in August, compared to the previous year, according to recent data from the National Institute of Statistics (INE).
However, youth unemployment, though declining in recent months, remains high. The youth unemployment rate recorded its lowest at 18.9% in June and August 2025, the lowest since June 2023 when it was 18.5%.
