Proposal for Extended Parental Leave in Portugal Under Review

A pivotal proposal aimed at extending fully paid parental leave in Portugal to six months is currently undergoing parliamentary scrutiny. However, it is unlikely to gain approval by the end of this year. Although this important measure was forwarded for specialized discussion, a definitive date for a final vote has yet to be established.

Recently, the Portuguese Parliament took a significant step by approving an extension of initial parental leave benefits. This proposed legislation seeks to increase the current four-month fully paid leave to six months, while also extending the five-month leave at 80% pay to seven months. While the proposal has garnered preliminary approval, it still requires additional discussion from the Labour and Pensions Committee. Given the ongoing debates surrounding the State Budget, the likelihood of this proposal passing within this year remains slim.

The ruling parties, PSD and CDS-PP, opposed the proposal, suggesting that such matters should be resolved through social consultation. In contrast, opposition parties have emphasized the critical need to support newborn care and stimulate higher birth rates within the country. “This measure is crucial in helping parents be present during the formative early stages of their child’s life, although I wouldn’t argue that it directly encourages an increase in birth rates,” remarked Maria João Valente Rosa, a noted demographer and professor at the Faculty of Social and Human Sciences at Universidade Nova de Lisboa.

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Rosa highlighted that immediate increases in birth rates may necessitate immigration, given that Portugal has witnessed a staggering 60% decrease in birth rates over the past six decades, plummeting from 217,000 births in 1964 to a mere 85,000 in 2023.

While the proposal for extended parental leave is viewed as a valuable resource for achieving a better balance between work and family life, it is not seen as a direct remedy for Portugal’s declining birth rate. Daniela Costa, a mother of two who is currently on leave at 80% of her salary, shared her experience: “I spent two months working part-time, followed by a month fully dedicated to my daughters, and now I’ll be returning to part-time work again. This flexibility is incredibly beneficial, particularly for women, as it allows us to ease back into work without jumping straight into demanding schedules.”

Although Daniela might not personally benefit from the proposed extension, future parents would be afforded the opportunity to spend more quality time with their children while minimizing the financial strain on their households. “I believe it is essential to provide support to both mothers and fathers so that they can enjoy meaningful time with their young children when they need it the most,” she added.

As discussions on the proposal for extended parental leave continue within the parliamentary committee, it is essential to note that it is currently not part of the 2025 State Budget. The government has cautioned that the proposed changes would incur an additional 230 million euros in costs, which would elevate total expenditures for parental leave to a staggering 630 million euros.