Remote’s guide to employing in Portugal.
Portugal, officially the Portuguese Republic (Portuguese: República Portuguesa) is a country located mostly on the Iberian Peninsula, in southwestern Europe. It is the westernmost sovereign state of mainland Europe, being bordered to the west and south by the Atlantic Ocean and to the north and east by Spain. Its territory also includes the Atlantic archipelagos of the Azores and Madeira, both autonomous regions with their own regional governments.
10,276,617 (2018 est.)
Ease of doing business
Cost of living index
$$$ (56 of 139 nations)
VAT - standard rate
GDP - real growth rate
2.145% (2018 est.)
Employing in Portugal requires employers to own a legal entity in the country and manage payroll, tax, benefits and compliance through their own in-country resources. The complexity of employment regulations in Portugal makes full compliance with employment laws a burdensome process.
Through Remote’s Global Employer of Record solution, your team is employed by our local legal entities in each country, and we take care of payroll, tax, benefits and compliance so you can focus on what matters most -- your people.
Portuguese labour law is not contained under a single law. The main sources are the Portuguese Constitution which sets forth fundamental rights and principles regarding both employees and employers, European legislation, the Portuguese Employment Code and the Regulation of the Employment Code. Furthermore, collective bargaining agreements as well as individual agreements also play a role.
The vast majority of rules stipulated by the Portuguese Employment Code are mandatory and cannot be modified either by collective bargaining or agreement of the parties. All workers in Portugal are protected by Portuguese employment law.
|Saturday, January 1, 2022||New Year's Day|
|Wednesday, February 16, 2022||Carnival Day||Observed; however not an official holiday|
|Friday, April 15, 2022||Holy Friday||Vary every year|
|Sunday, April 17, 2022||Easter Sunday||Vary every year|
|Monday, April 25, 2022||Freedom Day|
|Sunday, May 1, 2022||Labour Day|
|Friday, June 10, 2022||Portugal Day|
|Thursday, June 16, 2022||Body of God,Corpus Christi|
|Monday, August 15, 2022||Assumption Day of Our Lady|
|Wednesday, October 5, 2022||Implementation of the Republic|
|Tuesday, November 1, 2022||All Saints Day|
|Thursday, December 1, 2022||Restoration of Independence Day|
|Thursday, December 8, 2022||Day of Immaculate Conception,Labour Day|
|Sunday, December 25, 2022||Christmas Day|
Minimum Wage: €741 per month in 12 payments; €635 per month in 14 payments for full-time workers, rural workers, and domestic employees ages 18 and older.
For customers of Remote, all employee payments will be made in equal monthly installments on or before the last working day of each calendar month, payable in arrears.
In Portugal, employees get 14 months of salary payments each year:
The allowances are paid with the same amount as a full month's salary.
Both the Subsídio de Férias (Holiday Allowance) and the Subsídio de Natal (Christmas Allowance) get taxed the same as any other payment for IRS & Social Security.
Employees can choose to earn their salary in 14 payments, with the holiday allowance being paid during Summer and the Christmas allowance being paid around the Christmas period.
Conversely, workers can elect to be paid 12 times ("duodécimos"), with those two extra payments being pro-rated throughout the year.
The payments have to be paid at least once a month and by the last working day. At Remote, this payment is made on the 25th of the month.
We can help you get a new employee started in Portugal fast. The minimum onboarding time we need is only 9 working days.
Our team ensures your employees are onboarded and paid as quickly as possible while keeping your business compliant with all local employment legislation. The minimum onboarding time begins after the employee submits all required information onto the Remote platform. The onboarding timeline is also dependent upon registration with local authorities.
For all non-nationals of the country of employment, the Right to Work assessment (if applicable) will add three extra days to the total time to onboard. There may be extra time required if we need to follow-up on the right to work assessment.
Please note, payroll cut-off dates can impact the actual first day of employment. Remote has a payroll cut-off date of the 10th of the month unless otherwise specified.
Besides providing your employees with all statutory benefits in Portugal, Remote can advise on and arrange for custom benefits and perks for your employees upon request.
Learn how employment taxes and statutory fees affect your payroll and your employees’ paychecks in Portugal.
23.75% - Social Security
1.75% - Labour Accident Insurance
1.00% - Wage Guarantee Fund (WGF)
11% - Social Security
14.5% - Up to 7,112
23.0% - 7,112-10,732
28.5% - 10,732-20,322
35.0% - 20,322-25,075
37.0% - 25,075-36,967
45.0% - 36,967-80,882
48.0% - 80,882 and above
Portugal collects an additional solidarity rate between 2.5-5% on income that exceeds €80,000.
By law, full-time workers in Portugal are entitled to 22 days of holiday leave per year.
Expecting mothers are entitled to up to 30 days of pregnancy leave before the birth and at least 6 weeks mandatory weeks after the birth of the child, between 17 and 21 weeks, for which the first 6 weeks after the birth are mandatory for the mother. The remaining 11 or 15 weeks can be shared between the parents.
Partner/paternity leave is up to 20 days, of which 10 days are compulsory within 30 days of the birth of the child and 5 days mandatory immediately after birth.
Termination of the employment relationship can happen in the following ways:
For an employee that has worked for less than 6 months, the notice period is 15 days, for between 6 months and 2 years it is 30 days and for employment longer than 2 years it is 60 days.,
The duration of probation periods depends on the contract type. For contracts of indefinite duration, the statutory standard is 90 days. For positions that are technically complex, with high levels of responsibility, require special qualifications or in a position of trust it may be extended to 180 days. For fixed-term contracts probation periods are 30 days if contract duration is longer than 30 days and 15 days if shorter than six months.