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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.

Minimum Wage

The minimum wage in Portugal is EUR 870 per month or EUR 12,180 per year, based on a standard 40-hour work-week. This rate is effective starting January 1, 2025.

Mandatory Training Hours

In Portugal, employers have to provide 40 hours of professional training per year to all employees with an indefinite contract. If these hours are not provided and duly registered, they will have to be paid upon termination according to Portuguese legal requirements.

Payroll Cycle

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.

In Portugal, employees get 14 months of pay payments each year:

The allowances are paid with the same amount as a full month's pay.

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 pay 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, with those two extra payments being pro-rated throughout the year (“duodécimos”). At Remote we follow an internal policy of accommodating this change for all employees that ask for a review once per year, usually during the start of the year.

The payments have to be paid at least once a month and by the last working day. At Remote, this payment is usually made on the 25th of the month.

Onboarding

We can help you get a new employee started in Portugal fast.

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.

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13 Public holidays

Competitive benefits package in Portugal

health_insurance
Health Insurance
dental_insurance
Dental Insurance
vision_insurance
Vision Insurance
mental_health_support
Mental health support
pension_or_401(k)
Pension or 401(K)
life_and_disability_insurance
Life and Disability Insurance

Local market insights

  • In Portugal, 90%* of employers offer supplemental health insurance to their workforce. (*based on 3rd-party market research from our partners)
  • Although the country has a public health system, supplemental health insurance provides employees with access to a wider range of options for providers and specialists, as well as significantly shorter wait times.

Our core benefits (which often include things like healthcare) are required in most countries where we hire. Because Remote is the employer of record, it’s important for us to offer the same core benefits to all employees in a country to ensure fair equity and non-discriminatory hiring practices, which protects your business and ours. Note that we do not add a markup on any benefits premiums or administration costs.

If you'd like specific information about our benefits packages in Portugal, start onboarding your first employee with Remote today.

For more insight into fair equity and benefits best practices, download our Global Benefits Guide and share with the rest of your hiring team.

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.

Capital City
Lisbon
Currency
Euro
Languages
Portuguese
Population size
10,276,617
Ease of doing business
Very easy
Payroll frequency
Monthly
VAT - standard rate
23%

Grow your team in Portugal with Remote

Want to employ workers in Portugal? Companies hiring in Portugal are typically required to either own a local legal entity or work with a global employment platform like Remote that can legally provide employment services in the country.

Remote can employ team members in Portugal and keep you compliant. Remote can hire, onboard, and pay your Portugal team so you don't have to set up local HR services in the region. Remote also makes it easy to pay contractors in Portugal. Sign up now to get started or talk to an expert for more details.

Risks of misclassification

Portugal, like many other countries, treats self-employed individuals or contractors and full-time employees differently. Misclassification of contractors in Portugal may lead to fines and penalties for the offending company.

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Transparent Pricing in Portugal

Payroll

27

per employee/month
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  • Powerful, transparent international payroll
  • Simple self-service platform
  • Personalised support from dedicated specialists
  • Adhere to local payroll regulations in every country
  • Integrated payroll, expense management, and HRIS solution
Contractor Management

27

per contractor/month
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  • Only pay for contractors you actively work with
  • Work with international contractors
  • Create, edit, and sign tailored, localised contracts
  • Approve contractor invoices with one click or auto-pay
  • Transparent payments with complete visibility
Employer of Record

645

per employee/month
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  • Hire without opening a local entity in 90+ countries
  • Onboarding with a dedicated specialist
  • Local payroll paid on time, every time
  • Compliance protections built-in
  • Competitive, flexible and localised benefits
  • Dedicated in-house experts for local support
  • Includes HR Essentials as standard