* Playroll continues to analyse immediate opportunities and fulfilled roles by recruitment partners, contractors and employers to identify in-demand jobs.

Capital City

Euro (€)


WET (GMT +0)

Employment Cost


Annual Leave

22 days

In-demand Specialties*
It Solutions , Database & Analytics, Management, Interpersonal Relations

The Ultimate Guide to Hiring Employees in Portugal

Simplify hiring employees in by partnering with Playroll. Our Employer of Record (EOR) handles hiring, onboarding, payroll, taxes, immigration, benefits administration, and compliance. While you maintain control of day-to-day tasks and responsibilities.


Key Considerations Before Hiring In Portugal

Employing in Portugal requires employers to own a legal entity in the country and manage payroll, tax, benefits and compliance through their own in-country resources. Grow your team in Portugal with our Employer of Record solution, ensuring streamlined, compliant business expansion with no entity.

Playroll allows you to hire employee's in Portugal quickly, easily and we even automate tax document collection, benefits, payroll and more.

Good To Know

Portugal's low employment costs, coupled with its strategic location in proximity to other EU markets, make it an appealing destination for international companies seeking to recruit remote workers, particularly in fields like engineering and business.

Despite its smaller size, Portugal's economy is comparable to other Western European countries. It has a booming manufacturing industry, low labor costs, and a sizable English-speaking population, making it attractive for international business expansion.

Employers in Portugal are required to contribute to the social security system on behalf of their employees, covering benefits such as health care, parental leave, and unemployment insurance.

Portugal actively encourages foreign direct investment, simplifying administrative processes and offering tax incentives to foster economic growth and attract international businesses.


Fundamental Aspects of Employment in Portugal

In Portugal, a written employment contract is legally mandated, specifying details such as:

  • Employee's professional category
  • Working hours
  • Place of work
  • Remuneration details

Probationary Period in Portugal

In Portugal, the probationary period for permanent employees spans 90 days. However, for roles with high technical or complexity requirements, this period extends to 180 days. Management, directorate, and equivalent responsibility roles have a probationary period of 240 days.

  • For fixed-term contracts, the probation period is 15 days when the contract is anticipated to last less than 6 months. If the contract duration is equal to or longer than 6 months, the probationary period extends to 30 days.

Working hours in Portugal

The maximum allowable working time per week in Portugal is set at 40 hours. The maximum weekly and daily working hours may vary based on the specifications outlined in the employment contract or collective bargaining agreements.

Overtime in Portugal

Overtime work in Portugal is defined as any labor carried out beyond the standard 40 hours in a week, and it is sanctioned only under specific circumstances, such as business-related emergencies. When authorized, overtime hours should not surpass two hours per day and are subject to the following compensation structure:

  • On standard working days: Employees are entitled to 125% of their normal pay rate for the initial hour of overtime and 137.5% of the normal pay rate for each subsequent hour.
  • On rest days and public holidays: Compensation increases to 150% of the regular pay rate, accompanied by an extra paid rest day.

Navigating Key Aspects of Payroll in Portugal

Portugal has a robust and complex payroll and tax system, and as an employer, it pays to understand payroll process basics.

1 January- 31 December

Fiscal Year in Portugal

1 January- 31 December is the 12-month accounting period that businesses in Portugal use for financial and tax reporting purposes.

Payroll Cycle in Portugal

The payroll cycle in Portugal is usually monthly, with employees being paid before the last of each month.
EUR 4.75 p/h

Minimum Wage in Portugal

The minimum wage for employees in Portugal is typically EUR 4.75 per hour, amounting to ~EUR 760 per month for a typical 40 hour work week.

Minimum wages and salaries in Portugal

The National Minimum Wage in Portugal stands at 760 EUR per month, calculated over 14 months.

Bonus Payments in Portugal

In Portugal, there are mandatory 13th and 14th salary payments. The 13th salary is typically paid out in June, designated for holidays, while the 14th salary is paid in December, for Christmas. These additional payments can be distributed incrementally within the 12 regular monthly salaries.

Comprehensive Overview of Employment Taxes in Portugal

Understanding the tax obligations for both employers and employees is crucial when operating in Portugal's business landscape. This section explains how taxes and statutory fees affect payroll and individual earnings in Portugal.

Employer Tax Contributions

Employer payroll contributions are generally estimated at an additional 26.50% on top of the employee salary in Portugal.

Tax Rate Tax Type

Employee Payroll Tax Contributions

In Portugal, the typical estimation for employee payroll contributions cost is around 11.00%.

Tax Rate Tax Type

Individual Payroll Tax Contributions

In Portugal, individual income tax is applied on an annual basis and follows a progressive rate structure, ranging from 14.5% to 48% as follows:

Tax Rate Income Bracket

Pension in Portugal

In Portugal, people receive old-age pensions when they reach the retirement age of 66 years and four months, applicable to both men and women. The pension amount is determined by their social security contributions and earnings history.

The tax-related information provided in this guide is intended for general guidance and informational purposes only. Reach out to our dedicated team for insights on remote hiring in Portugal tailored to your needs.

Easily navigate payroll, taxes and contributions with Playroll.

Grow your distributed workforce today!

Understanding the Protocols for Termination of Employment in Portugal

When it comes to terminating employment in Portugal, understanding the legal obligations regarding severance pay and contributions is essential. Below is a detailed overview of the key considerations for both employers and employees.

Termination Process

Termination procedures in Portugal adhere to standard protocols, involving notice periods unless an employer can demonstrate substantial grounds for immediate dismissal, typically attributed to misconduct or disobedience. Termination can occur due to:

  • Misconduct
  • Unsuitable for their job position
  • Disciplinary process
  • Changes in job requirements

Notice Period

Notice periods depend on the type of contract, for Open-Ended Contracts:

  • 7 days if you've worked less than 6 months or during probation.
  • 1 month if you've worked between 6 and 48 months.
  • 2 months if you've worked for more than 2 years.
  • For Fixed-Term Contracts:
  • 15 days if the contract is for less than 6 months.
  • 30 days if the contract is for 6 months or longer.

Severance Pay

Employees facing termination due to redundancy or unsuitability for the job are eligible for severance pay, based on the type of employment contract:

  • Indefinite-term Contracts: Severance pay is equivalent to 14 days of salary per year of service, capped at 12 months of base pay.
  • Fixed-term Contracts: Severance pay is calculated at 24 days per year of service.

Annual Leave Entitlements and Company Policies in Portugal

The annual leave entitlement in Portugal is 22 days for a full time worker. These can include public holidays on top of that or within those days, which would otherwise be unpaid.

Public Holidays in Portugal

In Portugal, there's no substitute holiday system, but it's usual to have extended weekends, giving employees longer breaks without using vacation days. Some mandatory holidays may be observed on the following Monday if specified by official legislation. This allows for more flexibility and a better work-life balance.

Holiday Date

Paid Time Off in Portugal

Maternity Leave in Portugal

Paternity Leave in Portugal

Sick Leave in Portugal

Marriage Leave

Care Leave

Parental Leave In Portugal

Portugal's Benefits Built Into Playroll

Competitive benefits package in Portugal

Playroll is committed to providing tailored, competitive benefits packages that are designed not only to attract but also retain top talent worldwide. Our global team of benefits experts build custom local packages to ensure your employees in Portugal's needs are met. Typically our packages contain some or all of the following benefits.

Health Insurance
Pension or 401k
Life and Disability Insurance
Vision Insurance
Dental Insurance
Discounts & Perks

Playroll Supplementary Benefits For Employment In Portugal

Make your benefits package in Portugal a talent magnet with Playroll's local plans. We offer benefits that are compliant, comprehensive, and flexible — all at competitive rates. Speak with our local territory experts to explore the localized benefits we can offer you, while you scale your team.

  • Health Insurance
  • Workman's Compensation
  • Background Checks
  • IT Equipment Sourcing

Statutory benefits for employment in Portugal

Playroll allows you to provide localized benefits for employees in Portugal within minutes. All in one manageable online dashboard. If you'd like specific information about our benefits packages in Portugal create an account or contact our global expansion team, today.

Playroll Benefit Services

Playroll's Expertise in Facilitating Work Visas for Portugal

At Playroll we're all about empowering employees to work anywhere, making mobility possible for global teams. We sponsor visas and hire the employee for you, so you don’t have to worry about payroll, taxes, and more.

It's important to note, visa support can be complicated. There are many variables that affect whether sponsorship is possible, including one’s nationality, education, marital status, and the immigration policy for the country in question.

Unfortunately, this means we can’t support visas everywhere - with that being said, we handle the entire visa process in-house, and dig into your situation to give you an overview of what to expect if we're able to help with visa sponsorship in Portugal.

Playroll Immigration Support

Integrated EOR Platform

Legal and compliance experts are readily available to provide guidance and case-by-case Q&A support.

Accelerated Immigration Timeline

By leveraging dedicated support from in-house legal and compliance experts for case by case questions and more.

Hire in 50+ Countries

Accelerated Immigration Timeline

Acquiring a visa without an entity has never been easier, leverage Playroll's global coverage to sponsor and hire employees.

Playroll Visa Services

Hiring International Employees is Complex.

Playroll makes it easy!