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 (CĆ³digo do Trabalho), usually on open-ended contracts, with social-security registration mandatory. Salaries are typically expressed across 14 payments, including holiday and Christmas subsidies.
The national minimum is about ā¬820 per month across 14 payments in 2024*, revised annually.
Monthly, with a holiday subsidy and a Christmas subsidy (each one month of pay) that make up the 13th and 14th payments.
There are about 13 national public holidays, plus optional municipal dates.
Written contracts are standard. Probation runs from 90 days up to 240 days for senior or open-ended roles.
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.
22 paid working days a year, plus the holiday subsidy.
Initial parental leave of 120 or 150 days shared between parents, paid by social security, with portions reserved for each parent.
Social security pays a sickness benefit after a waiting period, at rates that rise with the length of absence.
Paid leave for marriage, bereavement, and family care is set by the Labour Code.
Dismissal must follow a valid ground and procedure; unfair dismissal can mean reinstatement or higher compensation. Notice varies by ground and tenure.
Compensation for objective or collective dismissal is around 12 to 14 days of pay per year of service*, set by the Labour Code.
From 90 days up to 240 days for senior or open-ended contracts, with free termination during the period.
A 'recibos verdes' freelancer who works like an employee can be reclassified, with back social-security contributions and penalties.
*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.