Hire employees in

Portugal, hassle-free

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.

The average onboarding time frame in Portugal is 3 days with Deel.

Download the Guide

Currency

Euro (EUR)

Capital

Lisbon

Official Language

Portuguese

Payroll Cycle

Monthly

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.

  • Employee Training
  • Salary Guarantee Fund
  • Workers Compensation Insurance
  • Private Healthcare - Unisure (optional)

Our quickstart guide to hiring in Portugal

Navigate the tabs below to learn everything you need to know about hiring an employee in Portugal

Minimum Wage Requirements

The Minimum Wage is EUR 775,83 per month.

Individual Income Tax

The individual income tax ranges from 14.5% to 48%. Income tax is calculated according to progressive rates. Multiple additional factors may impact overall rates.

Income per year in EUR Tax Rate (%)
0 to 7,112 14.5%
Up to 10,732 25%
Up to 20,322 28.5%
Up to 25,075 35%
Up to 36,967 37%
Up to 80,882 45%
From 80,883 48%

Employer Cost

The employer cost is generally estimated at 27.9% of the employee salary:

  • Social Security - 23.75%
  • Compensation fund - 1.0%
  • Work insurance policy - 1.4%
  • Labor accident insurance - 1.75%
  • Health at work - €120
  • Safety at work - €30

Overtime Pay & Maximum Hours

Standard working hours are 8 hours per day and 40 hours per week. The standard work week is from Monday to Friday.

Overtime pay is mandatory and is not included in the salary. Worked hours outside of standard work hours are considered overtime. Employees can work a maximum of 2 hours of overtime per day. For overtime hours, employees are paid:

  • 125% of the hourly rate for the first hour.
  • 137.5% of the hourly rate for the following hours.
  • 150% of the hourly rate for weekends and bank holidays.

Maternity Leave

Pregnant employees who have contributed to Social Security for the past six months are entitled to 120 or 150 days of paid leave. 30 days are usually taken before the child's birth. The remaining days can be divided into two periods of time. The employee will receive 80 - 100% of the salary during this period depending upon the length of leave. Social Security will be responsible for this pay.

The employee can extend leave additional 90 days at 25% pay.

Paternity Leave

Employees who have contributed to Social Security for the past six months are entitled to 20 days of paid paternity leave and five additional days of optional leave. The first five days must be taken after the child's birth and the remaining 15 days, consecutive or not, must be taken within the following six weeks. The employee will receive 100% of the salary during this period, and Social Security will be responsible for this pay.

The employee can extend leave an additional 90 days at 25% pay.

Parental Leave

Employees are entitled to 120 working days of parental leave. Both parents can decide how to distribute the time off, which should be taken 30 days after maternity leave. Either parent can take parental leave. Social Security will pay 80-100% of the salary during this period, depending on how the leave was distributed between the partners.

Sick Leave

Employees are entitled to paid sick leave for up to 1095 days if they have contributed for the past 6 months to Portuguese Social Security. The first 3 days are unpaid and considered as a qualifying period. This leave is paid at different rates and by different payers depending upon the length:

Period Pay Payer
0 - 3 days 0% N/A
3 - 30 days 55% of base salary Social Security
31 - 90 days 60% of base salary Social Security
91 - 365 days 70% of base salary Social Security
+365 days 75% of base salary Social Security

Termination Requirements

Termination in Portugal can be complex and must be based on performance or redundancy reasons (e.g. serious cause, unfit for the role, extinction of the role).

Compliant terminations include:

  • Voluntarily by the employee
  • By mutual agreement
  • Unilaterally by the employer based on:
    • Objective grounds.
    • Disciplinary dismissal
    • Unsuitability for the job position.
  • By the expiration of the contract

It is not possible to terminate a contract when the employee takes parental leave, is pregnant, or breastfeeding.

Notice Period

Notice will depend on the nature of termination, length of employment, and the contract term.

  • During the probation period
    • the notice period is 7 days one week.
  • Termination due to redundancy or unsuitability for the job by the employer:
    • 30 days if the length of service is less than two years.
    • 60 days if the length of service is less than ten years.
    • 75 days if the length of service is ten or more years.
  • Voluntary termination by the employee:
    • 30 days if the length of service is less than two years.
    • 60 days if the length of service is two or more years.
  • Termination with cause
    • The notice period is not mandatory.
  • Non-renewal of a fixed term contract:
    • 15 days for the employer.
    • 8 days for the employee.

Severance for Employees

In Portugal, employees who are terminated based on redundancy or unsuitability for the job are entitled to severance pay.

  • For indefinite term contracts, severance pay is 12 days of salary per year of service up to 12 months of base pay
  • For fixed-term contracts, severance pay is 18 days per year of service

Higher severance payments may be agreed upon between employer and employee.

Paid Time Off

Both full-time and part-time employees are entitled to 22 days of paid time off (PTO) a year. Employees are eligible for annual leave after 6 months of work. Part-time employees are entitled to the same leave as full-time employees. During the first year of employment, an employee is not allowed to take more than 20 days.

Public Holidays

Portugal celebrates 13 national and up to 4 regional holidays based on the employee's location.

National public holidays include:

  1. New Year's Day
  2. Good Friday
  3. Easter Sunday
  4. Freedom Day Portugal
  5. Labour Day
  6. Corpus Christi
  7. Portugal Day
  8. Assumption Day
  9. Republic Day Portugal
  10. All Saints day
  11. Independence Day Portugal
  12. Immaculate Conception
  13. Christmas

Onboarding

3 business days

Employment Contract Details

Contracts must be in Portuguese and can be bilingual. They must be in writing and signed by both parties.

The contract must include:

  • Name
  • Start date
  • Length of the employment
  • Job description
  • Trial period conditions
  • Termination conditions
  • Payment conditions for the holiday and Christmas bonus
  • Remote work clause

Probation Period

Probation periods are not mandatory. The maximum probation period is 240 days. The length depends on the type of contract and seniority of the employee:

Indefinite contracts:

  • 90 days as standard.
  • 180 days for job positions with a high level of responsibility.
  • 240 days for managerial positions or senior staff.

Fixed-term contracts:

  • 30 days for contracts over six months.
  • 15 days for contracts of less than 6 months.
btn_download

Download the complete guide to hiring in Portugal

Simply fill out your details below to gain access to our complete guide to hiring in Portugal.

Hiring 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.

Group (8)

599 USD

Management fee

Group (9)

27.9%

Estimate Employer Cost

*of employee salary

Want to learn the cost of hiring an employee in Portugal?

View our Employee Cost Calculator

We have a 4.9 out of 5 rating on Trustpilot

We're trusted by over 6,000 businesses all over the world. Read our reviews on Trustpilot.com.

5 Stars

Deel is the best!!

“Deel is an amazing platform! It's super intuitive and user friendly, plus it runs suuuuper smoothly!! It has great options for paying and withdrawing money, plus it helps you keep super organized with your spending. They also have great support and are super friendly with all the questions you might have :D I would definitely recommend it!!”

Manuela Echeverry
Nov 20, 2020
5 Stars

A contracting life-changer!

"This has by far the singular tool that made my contracting work amazing. It used to be that contract management and payouts was a nightmare — Deel makes everything so easy especially with its Transferwise integration. Everyone gets paid on time and kept happy. I also contacted their support a couple of times for some small questions and they’ve been nothing short of amazing. If you’re a contractor or someone who hires contractors then definitely give Deel a go."

Kix Panganiban
Dec 3, 2020
5 Stars

Great service offering!!

"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."

Michael US
Oct 28, 2020
5 Stars

Terrific service

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

Nunzio Martinello
Dec 15, 2020
5 Stars

Deel is a game-changer for distributed teams

"Deel has been instrumental in helping us both open and operate our EU operations. It's super simple to set up and implement and the support team has been world-class. I can't recommend them enough!"

Jeremie Habib
Nov 16, 2020
5 Stars

Great app with great customer service

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

Felipe Marote
Jan 29, 2021

Deel makes growing remote and international teams effortless. Ready to get started?

+

Countries

+

Customers

+

Legal experts

+

Currencies