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Portugal just launched a ‘government-funded' 4-day workweek trial

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Portugal is the latest country to experiment with a four-day workweek, and businesses are getting an assist from the government.

For the next six months, 39 private-sector businesses in the country will participate in a "government-funded" pilot program in partnership with 4 Day Week Global, the nonprofit behind several prominent four-day workweek experiments around the world, according to a release from the group.

Employers have agreed to reduce the number of hours employees work every week from without cutting their pay through the 100-80-100 model: Workers get 100% of the pay for working 80% of the time in exchange for delivering 100% of their usual output.

Some 72% of the Portuguese labor force works more than 40 hours per week, making it the OECD country with the third-longest average workweek after the United Kingdom and Ireland, according to a report from University of London and University of Reading researchers overseeing the program.

Most of the businesses in the experiment are in the professional, scientific and technical fields, but the program's cohort also includes a nursery, care home, stem cells bank, research and development center, and firms from manufacturing, retail and nonprofit sectors.

Businesses say they want to see if a shortened workweek will help reduce employee stress and burnout, and in turn improve worker retention. Researchers also hope to track the economic, social and environmental implications of a four-day business week in Portugal.

4 Day Week Global has led several high-profile experiments around the world, which have gained momentum throughout the pandemic as businesses and employees began to re-think the modern work experience.

A trial in the U.S. last year proved to be wildly popular, with workers reporting they performed better and were less burned out. Many said they could never return to a traditional five-day week, or at least not without a significant pay bump. Employers benefited, too: Businesses reported an 8% increase in revenue throughout the trial period, and a 38% increase from the same time period a year prior.

4 Day Week Global's largest experiment to date included nearly 3,000 workers throughout the U.K. last year, with participants reporting better health, finances and relationships.

Although no country has fully adopted a four-day workweek, trials have run in South Africa, Belgium, Iceland, Japan and elsewhere.

Portugal has become a popular destination for American millennials looking to relocate internationally thanks to its affordable living and good weather. The number of Americans residing in Portugal is at its highest level in more than a decade, according to the Portuguese Immigration and Borders Service. There were about 7,000 Americans living in the country at the end of 2021, more than double three years earlier. 

And the country launched its own digital nomad visa last year, making it even easier for workers from any countries that aren't part of the European Union or European Economic Area to start a new life abroad.

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