Hire employees
and contractors in Portugal

Remote’s guide to employing in Portugal.

Capital city
Euro (€, EUR)
Population size
10,276,617 (2018 est.)
Language spoken

Facts & stats

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.

Portugal Map
  • Capital city
  • Currency
    Euro (€, EUR)
  • Language spoken
  • Population size
    10,276,617 (2019 est.)
  • Ease of doing business
    Very easy
  • Cost of living index
  • Payroll frequency
  • VAT - standard rate
  • GDP - real growth rate
    2.145% (2018 est.)

Grow your team in Portugal with Remote

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.

Get started today
Portugal risks illustration

Risks of misclassification

Portugal, like many other countries, treats self-employed individuals or contractors and full-time workers differently and there are risks associated with misclassification.


Employing in Portugal

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.

Public holidays

Date Holiday Name Extra information
New Year's Day
Good Friday
Easter Sunday
Liberation Day In Portuguese Dia da Liberdade
Labour Day
Corpus Christi
National Day
Assumption Day
Republic Day
All Saints' Day
Independence Restoration Day
Immaculate Conception
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 instalments on or before the last working day of each calendar month, payable in arrears.
We can help you get a new employee started in Portugal fast. The minimum onboarding time we need is only 72 hours.

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.


Competitive benefits package in Portugal

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.

  • benefits list
  • benefits list
  • benefits list
  • benefits list
  • benefits list
  • benefits list
  • benefits list
  • benefits list

Portugal meal allowance

Employers in Portugal commonly provide employees with a meal allowance, although it is not mandatory to do so. Taxation of the meal allowance depends on whether the employer provides the allowance in cash or as a meal card/voucher. If cash, any amount beyond €4.77 per day is taxable. If a meal card or voucher, any amount beyond €7.63 per day is taxable. Employers may pay more, but any amount above these limits is subject to taxes. Most employers provide the tax-exempt maximum but do not go above that limit.


Taxes in Portugal

Learn how employment taxes affect your payroll and your employees’ paychecks in Portugal.

  • Employer

    • 23.75% - Social Security
    • 1.75% - Labour Accident Insurance
    • 1.00% - Wage Guarantee Fund (WGF)
  • Employee

    • 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.

Types of leave


By law, full-time workers in Portugal are entitled to 22 days of holiday leave per year.

Pregnancy and
maternity leave

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.

  • Adoption or foster leave: upon adoption of a child under the age of 15 or have taken in a foster child, employees are entitled to the same amount of leave as under parental/maternity/paternity/partner leave.
  • Emergency and short absence leave: intended for unforeseen personal circumstances for which an employee has to take time off immediately. Examples include making arrangements for the care of a sick family member or in the event of a death in the family.
  • Unpaid leave: the employee may take unpaid leave in consultation with the employer on a full-time or part-time basis. There is no legal requirements to unpaid leave.
  • Special or extraordinary leave: may include leave for giving official notice of an intended marriage, marriage of a family member, moving house, funeral of a family member, a service or wedding anniversary, an interview or for consulting a doctor.


Termination process

Termination of the employment relationship can happen in the following ways:

  • Voluntary termination by the employee (resignation);
  • Retirement as per the employment contract;
  • Non-renewal of the employment contract or expiry;
  • Termination with just cause and no indemnity, for example in the case of theft or any other serious misconduct;
  • Collective dismissal due to economic reasons (f.ex. bankruptcy, restructuring, etc.); or
  • Termination by mutual consent.

Notice period

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.,

Probation periods

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.

Employ World Half-circle

Build your team,
anywhere in the world.

Get started today