Did you know that contributions to the Work Compensation Fund (WCF) can be withdrawn and invested in professional training and other activities? You have until December 2026 to recover the full balance of contributions made by your company.
Created in 2013, the year Portugal was under financial rescue by the Troika, the Work Compensation Fund emerged from a set of legal changes that determined the reduction of severance pay for workers (from 30 days to 12 days per year of work). Thus, companies began to contribute to this fund to ensure payment of up to 50% of the compensation in case of dismissal.
About 10 years later, in December 2023, following the Medium-Term Agreement for Improving Incomes, Salaries, and Competitiveness between the Government and employer confederations, it was determined that in December 2026 the fund will be extinguished. Therefore, if your company has contributed to the WCF over the years, you can now withdraw them and invest in activities such as:
- Funding for certified training and qualification of workers;
- Support for costs and investments related to workers’ housing;
- Investment in daycare centers, cafeterias, or other facilities that may benefit workers.
It should be noted that employers can use the funds for more than one of the intended purposes.
How to Proceed with WCF Withdrawal
Since the beginning of this year, it is possible to request the withdrawal of all contributions made to the WCF. On the Work Compensation Fund website, you can check the available balance, considering that balances below 400 thousand euros can be mobilized up to twice, and balances above that amount can go up to four mobilizations.
To make the mobilization request (also on the website), companies must:
- Specify the amount to be reimbursed and its purpose;
- Indicate which workers are beneficiaries (regardless of the purpose of the funds)
- Submit a declaration of honor confirming that the workers’ representative structures (workers’ committee, union committee, or union delegates) were consulted, or, in their absence, the workers themselves.
After December 31, 2026, unclaimed WCF balances will be transferred to the Work Compensation Fund Guarantee Fund (WCFGF), and entities will lose the opportunity to recover these amounts.
Since the beginning of this year, companies have already been withdrawing thousands of euros in funds, with a large majority of the funds being allocated to training. Don’t miss this opportunity! Invest in your employees and improve your company’s results.
