Portugal sees fines for undeclared work more than triple in four years

Portugal's Authority for Working Conditions (ACT) reported that fines for undeclared or partially undeclared work rose from 2,046 in 2020 to 6,964 in 2024, a more‑than‑three‑fold increase. Infractions for contract dissimulation grew from 523 to 3,805 over the same period.

The surge coincides with intensified inspections: ACT carried out nearly 15,000 visits in 2024, regularising 437 workers in undeclared‑work cases and 364 workers in dissimulated‑contract cases. The penalties imposed totalled a minimum of €14 million for undeclared work and €10.6 million for dissimulated contracts.

The government is proposing to soften the regime, cutting the maximum fine from €180,000 to €40,000 and removing the possibility of imprisonment. The most affected sectors are domestic service, construction, agriculture, hospitality, restaurant and retail, with digital platforms also highlighted as areas of concern.