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
Currency: Euro (EUR)
Official language: Portuguese
Payroll Cycle: Monthly
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.
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
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.
Approximately, 44.57% of employee salary.
Employment Contract Details
All documents must be presented to the local authorities. Bilingual contracts are allowed and recommended.
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.
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.
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.
The minimum notice period is 1 month, and the maximum 4 months. The length will depend on the labor relationship.
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