Portugal offers a skilled, multilingual workforce and 14 salary payments a year, with protective labour rules. All-in employer cost runs around 1.4x the gross salary once subsidies are counted. Here is what to know before your first Portuguese hire.
Employment runs under the Labour Code (Código do Trabalho), usually on open-ended contracts, with social-security registration mandatory. Salaries are typically expressed across 14 payments, including holiday and Christmas subsidies.
Employer social security is 23.75% of gross salary, and once the mandatory holiday and Christmas subsidies are accrued, the all-in load reaches roughly 40%.
The holiday and Christmas subsidies are statutory, not perks. State clearly in offers whether a quoted salary is across 12 or 14 payments.
Employees pay 11% social security plus income tax (IRS) on a progressive scale, withheld at source. Withholding is the employer's responsibility, which under EOR means ours.
*All figures are estimates from public sources (2025-26), pending ops verification - same basis as the EOR cost calculator. Not tax or legal advice.
Compliant Portuguese contract, payroll across 14 payments, social security, and benefits, handled. One invoice, flat $399 per month.