Hire employees in Portugal, hassle-free

With Deel, your business can easily hire employees in Portugal. No more worrying about local laws, complex tax systems, or managing international payroll. Deel takes care of everything in 150+ countries.

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Employee - Portugal

Hire employees in Portugal No entity needed.

Usually, to hire in Portugal,  your business needs an entity. That means a local office, an address registered as a subsidiary, and an account with a local bank. All of this, plus navigating regional benefits, payroll, tax, and HR laws, can take months.

Portugal also treats contractors differently than full-time employees, so misclassifying a contractor could lead to fines. Deel lets you hire employees in Portugal quickly, easily, and compliantly. We even automate tax document collection, payroll, benefits, and more.

All the necessary benefits for Portugal built right in 

Deel allows you to provide localized benefits for employees in Portugal within minutes. All in one manageable online dashboard.

  • Worker Compensation Insurance
  • Salary Guarantee Fund

Contents


    Speak to our team about how to compliantly hire in Portugal

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    Quick Overview

    Currency: Euro (EUR)

    Capital: Lisbon

    Official language: Portuguese

    Payroll Cycle: Monthly

    Statutory Holidays

    Paid Time Off

    In Portugal, employees are entitled to 22 days of paid holiday a year. Part time employees are entitled to same leave as full time employees.

    Public Holidays

    13 public holidays take place each year.

    • New Year’s Day
    • Good Friday
    • Easter Sunday
    • Freedom Day Portugal
    • Labour Day
    • Corpus Christi
    • Portugal Day
    • Assumption Day
    • Republic Day Portugal
    • All Saints day
    • Independence Day Portugal
    • Immaculate Conception
    • Christmas

    General Taxation

    Individual Income Tax

    The individual income tax average ranges from 14.5% to 48%. This tax depends on many variables, such as marital status, level of income, among others.

    Employer Cost

    Approximately, 44.57% of employee salary.

    Additional information

    Employment Contract Details

    All documents must be presented to the local authorities. Bilingual contracts are allowed and recommended.

    Probation Period

    Probation periods are determined by the type of contract the worker is engaged under and seniority. Probation period is mandatory in Portugal.

    • Fixed-term contracts that last under 6 months can include a probationary period from 15 days to 30 days.
    • Indefinite contracts can include a probationary period of 90 days.
    • Indefinite contracts for senior management include a probationary period up to 240 days for senior management.

    Minimum Wage Requirements

    The Minimum Wage is EUR 665 per month.

    Maximum working hours and overtime

    Maximum working time is generally 8 hours a day, 40 hours per week. Hours above the maximum hours per day are treated as overtime and need to be remunerated with an overtime supplement.

    Bonus and Expense Payments

    There are 2 bonuses that must be paid in Portugal: 13th & 14th salary. This bonuses are subjected to income tax and social security withholdings.

    Parental Leave

    To be eligible for paternity leave, employees must have contributed to the Portuguese Social Security System for at least 6 months. The Social Security System will pay 100% of the salary for the leave.

    • Maternity Leave: 120 or 150 calendar days counted from the date of birth. The pay during this time is calculated and paid by the social system and can be extended up to 90 days.
    • Paternity Leave: employees can take 20 days’ paternity leave within 30 days following the birth. 5 days of this must be taken consecutively immediately after the birth of the child.

    Sick Leave

    Employees who have contributed into the Portuguese Social Security System for the past 6 months are entitled to paid sick leave after the first 3 days of sickness. The first 3 days are unpaid and considered as a qualifying period. The pay will be in charge of the state and will depend on the length of the sickness:

    • From 3 to 30 days - 55% of base salary
    • From 31 to 90 days - 60% of base salary
    • From 91 to 1 year - 70% of base salary
    • Over 1 year - 75% of base salary

    Termination requirements for employees in

    Portugal does not allow at-will termination of employment for employers. Contracts can be terminated by any party with or without cause. If the agreement is terminated unilaterally a justification is needed: serious cause, unfit for the role, extinction of the role.

    Severance pay is typically 12 days of the base salary for each full year of employment.

    Notice Period

    The minimum notice period is 1 month, and the maximum 4 months. The length will depend on the labor relationship.

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    Nov 20, 2020
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    Dec 3, 2020
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    "The Deel platform has been super effective for my team and I and has enabled us to bring on workers globally. The platform allows us to onboard individuals seamlessly and with no issues at all. Highly recommend."

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    Oct 28, 2020
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    Terrific service

    "Great service, amazing customer care, terrific platform, both for the company and for the contractors/employees. Saving everyone's time and money"

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    Dec 15, 2020
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    Nov 16, 2020
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    "Great app with great customer service, with great attention to details and legal requirements. Looking forward to keep using it!"

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    Jan 29, 2021