Portugal capacity starts with a 40-hour week, and Everhour turns tracked work into usable utilization records.
Measure billable utilization against total capacity and see exactly how many hours you're leaving on the table each period.
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Industry average for agencies: 75–85%
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A Portugal capacity utilization calculation answers a practical management question: how much of a person's available working capacity became billable work. The common operating formula is billable hours divided by available hours, then multiplied by 100. The result supports staffing, pricing, hiring, and workload decisions because it separates productive delivery time from leave, holidays, training, internal work, and other non-billable time.
Portugal's Labour Code sets the normal working-time ceiling at 8 hours per day and 40 hours per week, before exceptions such as adaptability regimes or collective agreements. A full-time annual capacity denominator based on that 40-hour week is 2,080 hours before vacation, public holidays, sickness, training, or firm-specific time away.
Start with gross annual capacity: 40 hours per week × 52 weeks = 2,080 hours. Employees are entitled to at least 22 working days of paid annual vacation in each calendar year, and those days are counted Monday through Friday excluding public holidays. At 8 hours per day, that statutory vacation entitlement reduces annual capacity by 176 hours.
Public holidays need a scheduled-day check. Portugal lists 13 mandatory public holidays, but a capacity denominator should subtract only the holidays actually observed on a person's scheduled working days. Carnival Tuesday and the local municipal holiday may also apply when provided by collective regulation, employment contract, or an agreed replacement day. Each worker also has a minimum annual entitlement to 40 hours of continuous training.
Use available hours as the denominator after the capacity reductions you include. Example: a full-time consultant starts with 2,080 hours. Subtract 176 vacation hours, 80 hours for 10 mandatory public holidays observed on scheduled working days, and 40 training hours. Available capacity is 1,784 hours. If the consultant records 1,338 billable hours, utilization is 75%.
The formula is 1,338 ÷ 1,784 × 100 = 75%. At a €65 billable rate, the same billable hours represent €86,970 in capacity revenue. Keep revenue separate from utilization. Utilization measures the share of available hours used for billable work; revenue adds rate discipline, discounts, write-offs, and invoicing rules.
A one-off calculation is enough for a quarterly check, a staffing model, or a quick comparison between two capacity assumptions. It also works when the billable-hours number has already been reviewed and the denominator uses the same leave, holiday, and training rules for everyone in the comparison.
A managed workflow becomes necessary when people track time across projects, managers approve entries, and finance needs a clean handoff for billing or payroll review. Everhour Time Tracking captures task and project hours through timers or manual entries, works inside supported project tools, and feeds approved timesheets, reporting, budgeting, invoicing, and payroll review.
This content is for general information only, may not be fully up to date, and is provided without any warranty or liability.
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Divide billable hours by available hours, then multiply by 100. For Portugal, a full-time annual denominator commonly starts at 2,080 hours from a 40-hour week. Subtract applicable vacation, observed public holidays, training, sickness, and firm-specific time away before comparing billable hours with available capacity.
Yes, for a standard full-time annual denominator, the statutory minimum of 22 working days reduces capacity by 176 hours at an 8-hour day. Vacation days are counted Monday through Friday excluding public holidays, so do not subtract the same public holiday twice.
No. Portugal lists 13 mandatory public holidays, but the denominator should subtract only holidays actually observed on the person's scheduled working days. A holiday that falls outside the work schedule does not reduce that person's available hours.
Portugal's 40-hour minimum annual training entitlement can be treated as non-billable working capacity when a firm separates statutory training from billable delivery time. The key is consistency: use the same treatment across people and periods before comparing utilization rates.
No. Portuguese labour law supplies working-time, leave, holiday, and training inputs for the capacity denominator, but it does not set a billable-hours or professional-services utilization target. Firms set targets by role, seniority, pricing model, and delivery mix.
Everhour Time Tracking lets teams record task and project hours through live timers or manual entries inside supported project tools. Managers can use approvals, locked periods, reminders, and timer rules before those hours feed timesheets, reports, budgets, invoices, or payroll review.
Everhour Reporting turns logged time, budgets, costs, and project data into customizable reports with columns, grouping, filters, date ranges, and exports. Teams can compare billable and non-billable time by person, project, client, or period before calculating utilization.
Use approved time entries, locked periods, and reviewed task hours before utilization reaches staffing or billing decisions. Everhour turns daily tracking into cleaner capacity records.
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