How to record a telework agreement and the compensation of expenses

What is it for?

It keeps the telework agreement and its deadlines, and calculates the compensation of expenses on the payslip. Up to the legal limit per day, the compensation is free of IRS and Social Security. Anything above that limit is taxed.

When to use it?

• When the company and the employee sign a telework agreement.
• Every month, to mark the telework days and put the compensation on the payslip.
• When the agreement ends, to write the termination notice, the denunciation or the non-renewal.
• Do not use this agreement for business trips: they have their own statement.

Where to find it?

• Agreements: People › Work time › Telework agreements. On the employee form, also under ⋮ › Telework agreements.
• Telework days: on the agreement, the Mark the days of telework button.
• Attendances, for viewing only: Payroll › Prepare › Absences and attendance › Check the presences.
• Pay item: Payroll › Configure › Pay item setup › Pay items.

Before you start

• To create the agreement and the pay item, your profile is Payroll Administrator or HR.
• To mark the days, your profile is Payroll Processor or Payroll Administrator.
• The attendances for the telework days have already been recorded by whoever manages attendances. The marking window does not create them.
• You have the agreement signed by hand: the date, and where it is kept.

How to use it

1. Open the agreements and click New. With no agreements, the list says “The telework agreements appear here; create one with New, choosing the worker.”
2. Choose the Worker first. Contract version fills in by itself, and the list only shows that employee's versions. Without an employee, the list says “No records”.
3. In Scheme, choose Permanent or Alternate with presential work. Fill in the Usual place of work, the working hours, Equipment owned by and Presential contacts.
4. In Duration, choose Indeterminate (sem termo) or Fixed term. Fill in the Start and, for a fixed term, the end of the first period, at most six months later.
5. Fill in Written agreement of and Proof of the written agreement.
6. In Compensation of expenses, choose Daily value fixed in the agreement (art. 168.º/3) and fill in Compensation per day, or Comparison with the last presential month (art. 168.º/4). If the amount comes from a negotiated collective agreement (IRCT), tick Value from a negotiated IRCT?. Click Save.
7. Click Mark the days of telework. Check From and Up to and click Mark the days. A message appears, for example “4 presence(s) marked as telework.” The compensation counts only these days.
8. If the company does not yet have the pay item, create it as in How to create and configure a pay item. In Quantity source, choose Telework compensation (CT art. 168.º).
9. On the month's payslip, not yet validated, click Calculate. The Telework compensation line is added by itself.

Example. An agreement with €1.50 per day, with the employee's own equipment, and 3 full days of telework in November 2026:

Part	Calculation	Amount
Compensation	3 × €1.50	€4.50
Free of IRS and Social Security	3 × €1.00	€3.00
Taxed (excess)	3 × €0.50	€1.50

How was it calculated? says: “Of this amount, €3.00 is within the legal limit (free of IRS and Social Security) and €1.50 is the excess, which is taxed.”

If the equipment belongs to the company. With Employer in Equipment owned by, the same payslip has €1.50 free of IRS and Social Security (3 × €0.50) and €3.00 taxed.

If a day is not complete. With a 4th day of 3 hours marked as Teleworking, the compensation rises to €6.00, but the exempt part stays at €3.00: the remaining €3.00 is taxed.

Expected result

• The agreement shows by itself Ends on, the last day to declare non-renewal and Either party may denounce until. In the example: 30/04/2027, 15/04/2027 and 30/11/2026.
• A warning on the agreement says: “Renews on 01/05/2027 unless the non-renewal is declared in writing until 15/04/2027 (art. 167.º/2).”
• The payslip shows the line, and How was it calculated? separates the exempt part from the excess.

Important notes

• Limit. Portaria n.º 292-A/2023, art. 2.º, sets up to €1.00 per day: internet €0.40, computer or equivalent equipment €0.50 and electricity €0.10. The limit rises by 50 % when the compensation comes from a negotiated collective agreement (IRCT). It only applies to full days of telework actually performed, with a written agreement (art. 4.º). fiscaldoo gives as its source the Labour Code (Código do Trabalho, CT) art. 168.º/2-6 and this Portaria, read on 09/10/2026.
• Who owns the equipment. The limit only applies to what the company does not provide to the employee (Portaria, art. 3.º). With Employer, fiscaldoo removes the €0.50 for the computer and the daily limit becomes €0.50. If the company pays for the internet or the electricity, or provides only part of the equipment, confirm the exempt part with the accountant: the agreement has no field for this.
• Other deadlines. Fixed term: six months, renewable, with a declaration up to 15 days before the end. Indefinite term: the notice takes effect on the 60th day. In the first 30 days, either party may terminate. Labour Code, arts. 166.º to 169.º.
• With no days marked, the line stays at zero, and the payslip warns you: see “Common problems”.

Pending validation by a certified accountant: the 2026 limits, the category and the Social Security code of the pay item, and the limit when the company provides only part of the equipment.

Common problems

The fixed-term agreement is refused

• Message: “The first period of the telework agreement of … runs from 01/11/2026 to 31/07/2027, more than the 6 months the law allows (CT art. 167.º/2). How to fix it: shorten the term, or record an agreement with no fixed term.”
• Cause: the first period is longer than six months.
• What to do: correct the date or change to Indeterminate (sem termo).

It does not save: fields in red

• Message: “Some required fields are empty. Fill in the fields marked in red to be able to save.”
• Cause: Contract version, Scheme or Start is missing.
• What to do: fill them in.

The agreement warns that the written proof is missing

• Message: “No proof of the written agreement (art. 166.º/5): keep the signed agreement or the contract clause.”
• Cause: Proof of the written agreement is empty. The agreement is saved all the same.
• What to do: write where the signed document is kept.

The payslip warns that there is no pay item

• Message: “… has a telework agreement in force, and no pay item for the compensation is in force: the compensation of the expenses (CT art. 168.º) would stay unpaid. How to fix it: create the pay item in Payroll › Configure › Pay item setup › Pay items with the source “Telework compensation (CT art. 168.º)” and calculate again.”
• What to do: do step 8 and click Calculate again.

The compensation on the payslip is zero

• Message: “There is no telework day recorded for … in the period, so the compensation is €0.00. How to fix it: mark the teleworked days with the “Mark the days of telework” button on the employee's telework agreement (the attendances are in Payroll › Prepare › Absences and attendance › Attendances) and calculate again.”
• Cause: no attendance in the month is marked as Teleworking.
• What to do: currently, the path in the message does not exist in the menu. Mark the days as in step 7 and click Calculate.

The marking window says there are no attendances

• Message: “There are no presences of … between 01/11/2026 and 30/11/2026, and this window does not create them. How to fix it: ask who manages the attendances to record the presences of the days teleworked (Payroll › Prepare › Absences and attendance › Attendances), then mark the days.”
• What to do: ask whoever manages attendances to record them, then mark the days again. Currently, the path in the message does not exist in the menu.