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Hire employees and contractors in Portugal

Outstaffer’s guide to employing in Portugal.
Portugal employee facts

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 (€, EUR)
Official Languages
Portuguese
Population size

10,276,617 (est. 2018)

Ease of doing business

Very Easy

Cost of living index

$$$ (56 of 139 nations)

Payroll frequency

Monthly

VAT - standard rate

23%

GDP - real growth rate

2.145% (2018 est.)

Tech talent

Tech Talent in Portugal

Portugal is increasingly becoming a hotspot for tech talent in Europe. The country boasts a growing community of skilled software developers, engineers, and IT professionals. Portuguese universities provide a strong foundation in technology and engineering, while a relatively low cost of living and a vibrant lifestyle make it an appealing destination for tech companies and startups. Lisbon and Porto, in particular, are emerging as thriving tech hubs, fostering innovation and entrepreneurship. Portuguese tech talent is recognized for its adaptability and multicultural perspective, contributing to Portugal's rising presence in the global tech industry.

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Top Skills

What’s a Rich Text element?

The rich text element allows you to create and format headings, paragraphs, blockquotes, images, and video all in one place instead of having to add and format them individually. Just double-click and easily create content.

Static and dynamic content editing

A rich text element can be used with static or dynamic content. For static content, just drop it into any page and begin editing. For dynamic content, add a rich text field to any collection and then connect a rich text element to that field in the settings panel. Voila!

How to customize formatting for each rich text

Headings, paragraphs, blockquotes, figures, images, and figure captions can all be styled after a class is added to the rich text element using the "When inside of" nested selector system.

Top Industries

What’s a Rich Text element?

The rich text element allows you to create and format headings, paragraphs, blockquotes, images, and video all in one place instead of having to add and format them individually. Just double-click and easily create content.

Static and dynamic content editing

A rich text element can be used with static or dynamic content. For static content, just drop it into any page and begin editing. For dynamic content, add a rich text field to any collection and then connect a rich text element to that field in the settings panel. Voila!

How to customize formatting for each rich text

Headings, paragraphs, blockquotes, figures, images, and figure captions can all be styled after a class is added to the rich text element using the "When inside of" nested selector system.

Average Market Salary

What’s a Rich Text element?

The rich text element allows you to create and format headings, paragraphs, blockquotes, images, and video all in one place instead of having to add and format them individually. Just double-click and easily create content.

Static and dynamic content editing

A rich text element can be used with static or dynamic content. For static content, just drop it into any page and begin editing. For dynamic content, add a rich text field to any collection and then connect a rich text element to that field in the settings panel. Voila!

How to customize formatting for each rich text

Headings, paragraphs, blockquotes, figures, images, and figure captions can all be styled after a class is added to the rich text element using the "When inside of" nested selector system.

Diversity

What’s a Rich Text element?

The rich text element allows you to create and format headings, paragraphs, blockquotes, images, and video all in one place instead of having to add and format them individually. Just double-click and easily create content.

Static and dynamic content editing

A rich text element can be used with static or dynamic content. For static content, just drop it into any page and begin editing. For dynamic content, add a rich text field to any collection and then connect a rich text element to that field in the settings panel. Voila!

How to customize formatting for each rich text

Headings, paragraphs, blockquotes, figures, images, and figure captions can all be styled after a class is added to the rich text element using the "When inside of" nested selector system.

Years of Experience

What’s a Rich Text element?

The rich text element allows you to create and format headings, paragraphs, blockquotes, images, and video all in one place instead of having to add and format them individually. Just double-click and easily create content.

Static and dynamic content editing

A rich text element can be used with static or dynamic content. For static content, just drop it into any page and begin editing. For dynamic content, add a rich text field to any collection and then connect a rich text element to that field in the settings panel. Voila!

How to customize formatting for each rich text

Headings, paragraphs, blockquotes, figures, images, and figure captions can all be styled after a class is added to the rich text element using the "When inside of" nested selector system.

Years in Current Company

What’s a Rich Text element?

The rich text element allows you to create and format headings, paragraphs, blockquotes, images, and video all in one place instead of having to add and format them individually. Just double-click and easily create content.

Static and dynamic content editing

A rich text element can be used with static or dynamic content. For static content, just drop it into any page and begin editing. For dynamic content, add a rich text field to any collection and then connect a rich text element to that field in the settings panel. Voila!

How to customize formatting for each rich text

Headings, paragraphs, blockquotes, figures, images, and figure captions can all be styled after a class is added to the rich text element using the "When inside of" nested selector system.

hire from Portugal

Grow your team in Portugal with Outstaffer

Looking to employ workers in Portugal? Companies hiring in Portugal must either own a legal entity in the country or work with a global employment solutions provider, usually one that provides employer of record services.

Outstaffer can employ your team in Portugal on your behalf through our local legal entity in the country and handle payroll, benefits, taxes, and compliance for your Spain team. You can also pay contractors now in Kenya with Outstaffer.

#hire from Portugal

Grow your team in Portugal with Outstaffer

Looking to employ workers in Australia? Companies hiring in Australia must either own a legal entity in the country or work with a global employment solutions provider, usually one that provides employer of record services.

Outstaffer makes it easy for companies of all sizes to employ workers in Australia using our employer of record solution. We can help employ your Australian team using our local Australian entity, as well as handle your payroll, benefits, taxes, and local legal compliance.

Public holidays

Below are national public holidays applicable for all regions in this country

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Jan 1

New Year's Day 
(Dia de Ano Novo)

Jun 8

Corpus Christi 
(Corpo de Deus)

Dec 1

Restoration of Independence Day (Restauração de Independência)

Apr 7

Good Friday 
(Sexta-feira Santa)

Jun 10

Portugal Day 
(Dia de Portugal)

Dec 8

Immaculate Day (Dia da Imaculada Conceição)

Apr 9

Easter Sunday 
(Páscoa)

Aug 15

Assumption Day of Our Lady (Assunção de N.a Senhora)

Dec 25

Christmas Day 
(Natal)

Apr 25

Freedom Day 
(Dia da Liberdade)

Oct 5

Implantation of the Republic (Implantação da República)

May 1

Labor Day 
(Dia do Trabalhador)

Nov 1

All Saints Day 
(Dia de Todos os Santos)

Minimum Wage

Minimum Wage: €760 per month in 14 payments for all employees.

Overtime Pay

Minimum Wage: €760 per month in 14 payments for all employees.

Payroll Cycle

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:

  • 12 months of work
  • 1 Holiday allowance
  • 1 Christmas allowance

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 Outstaffer, this payment is made on the 25th of the month.

Onboarding Time

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 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. Outstaffer has a payroll cut-off date of the 10th of the month unless otherwise specified.

13th Month Salary

attract & retain talent

Competitive benefits package
in Portugal

Outstaffer supports our clients by offering competitive benefits packages that will help you attract and retain the best talent across the globe! Our benefits specialists have done the research on norms and requirements in each local market and have crafted packages that will allow your employees to thrive, no matter what country they live in.

Our benefits packages in Portugal are tailored to fulfil the local needs of your employees. Typically, our packages contain some or all of the following benefits:

Supplemental screening & vaccine insurance
Supplemental maternity insurance
Employee engagement funds
Flexible work schedule
Additional paid holidays
Supplementary vision insurance
Supplemental dental insurance
Private health insurance
Learn More About Benefit Packages
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Taxes in the Portugal

Learn how employment taxes and statutory fees affect your payroll and your employees’ paychecks in Portugal.
Employer
  • 23.75% - Social Security (with no upper ceiling)
  • 1.00% - Wage Guarantee Fund (WGF)
  • 0.50% - Work Accident Insurance
  • €600.00 - Mandatory work from home allowance (Calculated on top of the base monthly salary at €50.00 per month)
  • €30.00 - Mandatory Health check calculated on top of the base annual salary.
  • €14.40 - Work Medicine (Calculated on top of the base monthly salary at €1.20 per month)
  • 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.
  • Leave

    Types of leave

    Statutory 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.


    Parental/paternal leave

    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.


    Other leave
    • 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.

    subtitle

    Employment termination

    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.,

    Severance pay
    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.

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