Labour Compensation Fund: Deadline for the use of existing balances ends on 31 December 2026

At a glance

• Following the amendments introduced by Decree-Law No. 115/2023 of 15 December, employers are no longer required to contribute to the Labour Compensation Fund (Fundo de Compensação do Trabalho)(FCT).
• However, existing balances may continue to be used until 31 December 2026. Any amounts remaining after that date will no longer be available for mobilisation.

Existing FCT balances may be used for the purposes provided by law, including the payment of compensation upon termination of employment contracts, the financing of certified training for employees, housing support for young employees, and other investments agreed between the employer and employees’ representative bodies, such as the establishment of canteens or childcare facilities.

Employers must submit a declaration of honour through the FCT portal specifying the amount to be mobilised, its intended purpose and the employees who will benefit from it. Where applicable, employers must also provide evidence that employees' representative bodies have been consulted and that no reasoned objection has been raised. If the proposed use of the funds requires agreement with employees' representative bodies, a copy of the relevant agreement must accompany the application.

The balance available in the FCT may be consulted at any time through the Labour Compensation Funds portal, using the employer's Segurança Social Direta credentials.