Private and social sector employers to benefit from new incentive to convert fixed-term employment contracts - Communication

Secretaria Regional da Juventude, Habitação e Emprego

The regulations governing the new ESTABILIZA measure were published today in the Official Journal. The Regional Government created this measure to encourage private and social sector employers to invest in job stability and the development of their workers by converting fixed-term employment contracts into contracts of indefinite duration.  

Applications for this measure, managed by the Regional Secretariat for Youth, Housing and Employment – Regional Directorate for Vocational Training and Employment, will be open from July 7 to September 30. They must be submitted online by employers with their head office or establishment in the Azores at emprego.azores.gov.pt.

Employers whose applications are approved will receive financial support of €5,000 for each conversion of an employment contract, which will be paid in a single instalment. 

Full-time fixed-term employment contracts, whether fixed-term or of unspecified duration, which commenced before July 1, 2026, and were converted into full-time contracts of indefinite duration between July 1 and September 30, are eligible for application and support. However, conversions already resulting from the applicable law, court rulings or regulatory actions are excluded from this support. 

This new measure has been introduced as part of a package of measures to tackle rising fuel prices and support households and businesses. 

“Faced with a temporary economic challenge, we are not merely seeking to mitigate its effects. We are seeking to turn it into an opportunity for quality employment, boost business competitiveness, and create a more resilient and less segmented labour market,” explained the Regional Secretary for Youth, Housing and Employment. 

Maria João Carreiro pointed out that a skill development and employment policy promoting job stability has been in place in the Azores since November 2020, under which contracts of indefinite duration are increasingly the rule rather than the exception. 

In 2017, only 1.1% of placements under recruitment support schemes in the Azores were contracts of indefinite duration. In 2025, this figure reached 100%, reflecting a shift in the profile of supported recruitment, better opportunities for workers, greater security for families and improved prospects for the economy.