Portugal Offers Salary Bonuses for Graduates Remaining in the Country

Students earning a bachelor’s or master’s degree from higher education institutions in Portugal (public or private) and who stay to work in the country, from now on will receive salary bonuses, the Portuguese government has announced.

The decision on this innovative program, first introduced by Prime Minister António Costa in September, was formally released on December 28, 2023, on the pages of Diário da República, the official gazette in Portugal.

According to a press release issued by the government on December 28, 2023, under the new regulation, only bachelor’s or master’s degree holders who are residents of Portugal will be eligible for bonuses, Erudera.com reports.

Graduates meeting the criteria can expect an annual salary bonus of €697 for each year of their bachelor’s studies and €1,500 for each year of their master’s degree. These payments will be facilitated through annual bank transfers from the Tax Authority, exempt from IRS (Income Tax) or Social Security contributions.

The bonus will be provided for the same number of years students have dedicated to their respective study cycles. Additionally, not only will recent graduates benefit from the initiative, but those who earned their academic degrees before 2023 may also qualify.

However, these students will be eligible for a bonus only if the time passed since graduation does not exceed the duration of their bachelor’s or master’s degree.

All taxpayers below the age of 35 living in Portugal who have earned a bachelor’s and/or master’s degree from a Portuguese university in 2023 and following, will be qualified for the salary bonus.

This is also the case for students who hold diplomas from institutions abroad, as long as they are recognized in Portugal.

“According to the diploma, the premium applies to all taxpayers residing in national territory, up to the age of 35, who have obtained a bachelor’s and/or master’s degree in national higher education institutions (public or private) in the years of 2023 and following (also applying to the same academic degrees obtained abroad, as long as they are recognized in Portugal),” the press release reads.

Individuals must fall under categories A (dependent work) or B (self-employed workers) to be eligible. They should also have their tax and contribution status regulated by the tax authority and social security.

Applicants are required to submit their application for the bonus via an electronic form after completing their studies.

Last year, about 74,600 international students chose Portuguese higher education institutions, the majority from Brazil (17,028), followed by Guinea-Bissau (6,910), Cape Verde (6,449), Angola (5,292) and France (3406). These data were released by the Directorate-General for Education and Science Statistics (DGEEC).

Related:

Record High: Higher Education Enrollment in Portugal Surges to 446,028 in 2022/23

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