The landslide on the road between Borba and Vila Viçosa on 19 November brought down large quantities of rocks, marble blocks and land into a quarry next to the road.
Two workers from a marble quarrying company, who worked at the active quarry, died as well as three other men who were in two cars on the road that collapsed into a neighbouring closed-down quarry.
According to a statement approved in a cabinet meeting on Thursday, the authorities decided to introduce an "extrajudicial, fast and efficient procedure" in order to award compensation for the losses and damages caused by the tragic accident.
The statement added that the deadlines, necessary procedures to request compensation and amounts to pay each case would be determined by the courts.