Portugal is moving forward with a six month pilot program to test a four day workweek in private sector companies, backed by funding of up to 350,000 euros. The initiative is slated to begin in the second half of 2023 and aims to explore how a shortened work week can be implemented without reducing overall pay. The project intends to preserve salaries for the majority of employees while reducing weekly hours, offering a practical examination of productivity, work life balance, and organizational impact in real business settings.
The Portuguese Institute for Employment and Vocational Training, known as IEFP, will oversee the funding and management of the pilot. The program will operate with the collaboration of Birkbeck University in London and the 4 Day Week Global Foundation, bringing together academic insight, international best practices, and a broad network of participating companies. IEFP has stated that it will cover all necessary costs and expenses for the pilot, up to a grand total of 350,000 euros, including logistics, administrative support, and related financial needs. This multi-institutional approach is designed to ensure rigorous evaluation and transparent implementation as the pilot progresses.
Selected private sector companies interested in participating will be invited to engage in an initial phase that involves postponing the usual five day week while maintaining the same remuneration structures for most staff. The program also includes disclosure sessions and preparatory workshops scheduled before year end, with the first cohort of firms expected to decide early in 2023 whether to continue under the new framework or revert to a traditional schedule. A cooling off period will allow businesses to weigh the decision and gauge the potential benefits and challenges before final commitments are made.
In the public sector, a separate study will assess working hour regulations and pilot applications for a four day work week, aiming to determine applicability across government operations and public services while maintaining service levels. This parallel track reflects a broader interest in how shorter work weeks could affect efficiency, employee well being, and public outcomes in the state system.
Public debate about a four day week has grown in Portugal, with the Socialist Party including targeted proposals for specific sectors in its electoral program, following parliamentary elections held on January 30. The party achieved a clear majority, which has given new momentum to discussions about work time reform and how to balance productivity with worker welfare in the national economy. Meanwhile, recent surveys show that attitudes among employers are mixed. A significant share of Portuguese business leaders express skepticism about the broader benefits of a four day week for companies, even as some acknowledge potential gains for workers in terms of fatigue reduction, morale, and recruitment appeal. A comprehensive survey of 1,130 companies conducted by the Portuguese Business Association revealed that the majority remain uncertain about the overall impact on company performance, underscoring the need for careful analysis through pilots like this one. These insights help frame the ongoing conversations about how best to structure work time in a modern economy while preserving competitiveness and job quality for workers.