Expand your global workforce in Portugal
Your guide to the employment landscape, working customs and local labor laws in Portugal
Capital
Lisbon
Currency
Euro (EUR)
Languages
Portuguese
GDP per Capita
$29,992.94
Employer Tax
26.5%
Payroll Frequency
Monthly
Talent overview
Portugal is ranked 32nd among the 158 countries in the Readiness for Frontier Technologies Index. Tech start-ups are opening all over the country which in turn strengthens their IT sector. This has led to more opportunities for the Portuguese talent pool and for investors.
Aside from Portugal’s IT industry, their industrial structure focuses more on foreign trade as they leverage agricultural exports.
Major economic hubs:
Lisbon, Madeira
Skills in demand:
ICT Professionals, Marketing, Creative and Design Professionals, Hospitality, Teaching Professionals, Health-Related Occupations, Tourism Professionals
Portugal
Top local universities in Portugal
Universidade de Lisboa
RANKING
Local: 1
World : 203
Universidade do Porto
RANKING
Local: 2
World : 246
Universidade de Coimbra
RANKING
Local: 3
World : 386
Universidade Nova de Lisboa
RANKING
Local: 4
World : 571
Universidade do Minho
RANKING
Local: 5
World : 586
Top Local Job Boards:
Indeed Portugal, Adecco Portugal, Net-Empregos, BonsEmpregos
Number of LinkedIn users:
4,560,000
Top Recruitment Agencies:
Where to find talent
Top Local Job Boards:
Top Local Job Boards
Number of LinkedIn users:
Number of LinkedIn users
Top Recruitment Agencies:
Top Recruitment Agencies:
Salary Data
Below are the average monthly salaries for some jobs in Portugal:
| Job Title | Average Monthly Salary (EUR) | Average Monthly Salary (USD) |
| Technical Product Engineer | 2,500 | 2,808 |
| Developers/ Programmers | 2,520 | 2,830 |
| Data Analyst | 2,480 | 2,785 |
| UX Designer | 2,250 | 2,527 |
| Project Manager | 2,920 | 3,280 |
| Sales Executive | 3,450 | 3,875 |
| Chief Accountant | 2,760 | 3,100 |
Employ in Portugal
Employing in Portugal
You must know Portugal’s employment laws, benefits, payroll, and taxes to successfully onboard employees for your company. To avoid disputes and problems in hiring, the section below will provide you with the needed information to onboard employees, problem-free.
Employee Contract
Employment contracts in Portugal can either be written or oral which includes everything within the provision of Portugal’s Labor Law.
Probation Period
The probationary period for employees is a minimum of 3 months to a maximum of 8 months.
Public and Provincial Holidays
| Date | Name | Type |
| January 1 | New Year’s Day | National Holiday |
| April 18 | Good Friday | National Holiday |
| April 20 | Easter Sunday | National Holiday |
| April 25 | Liberty Day | National Holiday |
| May 1 | Labor Day / May Day | National Holiday |
| June 10 | Portugal Day | National Holiday |
| June 19 | Corpus Christi | National Holiday |
| August 15 | Assumption of Mary | National Holiday |
| October 5 | Republic Day | National Holiday |
| November 1 | All Saints’ Day | National Holiday |
| December 1 | Restoration of Independence | National Holiday |
| December 8 | Feast of the Immaculate Conception | National Holiday |
| December 25 | Christmas Day | National Holiday |
Local Holidays
| Date | Name | Localities |
| March 4 | Carnival / Shrove Tuesday / Pancake Day | All |
| March 19 | St. Joseph’s Day | Santarém |
| May 6 | Our Lady of Mércoles | Castelo Branco |
| May 12 | St. Joana’s Day | Aveiro |
| May 22 | Leiria Day | Leiria |
| May 23 | Portalegre Day | Portalegre |
| May 29 | Ascension Day | Beja |
| June 9 | Azores Day | Azores |
| June 13 | St. Anthony’s Day | Lisbon, Vila Real |
| June 24 | St. John’s Day | Porto, Braga |
| June 29 | St. Peter’s Day | Évora |
| July 1 | Madeira Day | Madeira |
| July 4 | St. Elizabeth’s Day | Coimbra |
| August 20 | Our Lady of Sorrows | Viana do Castelo |
| August 22 | Our Lady of Graces | Bragança |
| September 7 | Faro Day | Faro |
| September 15 | Birth of Bocage | Setúbal |
| September 21 | St. Matthew’s Day | Viseu |
| November 27 | Foral of Sancho I | Guarda |
Employee Leaves
| Type of leave | Time period | Mandatory |
| Annual leave/Earned Leave | 22 days | Yes |
| Sick Leave | 370 days | Yes |
| Maternity Leave | 120 days | Yes |
Leave Compliance
Public and Provincial Holidays
Payroll in Portugal
Payroll cycle
Workers in Portugal are paid on a monthly basis. Wages are released a day before the end of the month.
Minimum wage
The National Minimum Wage in Portugal is EUR 870/ month. A minimum wage is also set for the Autonomous Region of Azores at EUR 913.50/ month and for the Autonomous Region of Madeira at EUR 915/month.
Overtime pay
Overtime work may be required for employees when it becomes necessary by the company. However, employees are compensated for the extra hours they have rendered outside their normal working time. Below is the percentage of additional pay.
Read more
How taxes work
Employer Payroll Tax
| Tax Rate (Commercial Entity) | Contribution |
| 23.75% | Social Security |
| 1.75% | Labor Accident Insurance |
| 1.00% | WGF (wage guarantee fund) |
Employee Payroll Tax
| Tax Rate (Commercial Entity) | Contribution |
| 11% | Social Security (also covers family, pension and unemployment benefits) |
Employee Income Tax
| Annual Taxable Income (Euros) | Tax Rate |
| 0 to 7,703 | 13.25% |
| 7,703 to 11,623 | 18% |
| 11,623 to 16,472 | 23% |
| 16,472 to 21,321 | 26% |
| 21,321 to 27,146 | 32.75% |
| 27,146 to 39,791 | 37% |
| 39,791 to 51,997 | 43.5% |
| 51,997 to 81,199 | 45% |
| Over 81,199 | 48% |
VAT
The VAT rates depend on the location inside Portugal but they have three different rates for three different regions shown in the table below.
| Region | Type | ||
| Standard | Intermediate | Reduced | |
| Portugal | 23% | 13% | 6% |
| Autonomous Region of Madeira | 22% | 12% | 5% |
| Autonomous Region of the Azores | 16% | 9% | 4% |
Bonus
13th Month Pay
Employees in Portugal receive a bonus on their 13th and 14th month pay. The 13th month pay, known as the Holiday bonus, is typically paid before the employee’s annual leave. The 14th month pay, referred to as the Christmas bonus, is paid in December.
Employee Benefits
Below are some of the benefits that are offered for Portuguese employees:
- Work Accident Insurance
- Social Security
- Healthcare Insurance
- Pension
Employee offboarding
In Portugal, terminating an employee’s contract has many occurrences. It could be a collective dismissal due to a company that is downsizing, an employee’s retirement, an employee’s unsuitability for the current role, etc.
Employers are responsible to give their employees a notification in writing not less than ten days before the effective date of termination. During the ten days, the employee or other personnel may express their opposition to the decision in writing. Employers will then have time to evaluate and reach a decision.
The notice period for employees in Portugal is in the range of 7 to 30 days.
The calculation for the employee’s severance pay is based on their seniority period. Regular employees in service for 3 years will receive 18 days of their salary. For every year in excess of the 3 years, they will get an additional pay of 12 days.
Employees who have less than 3 years of work in the company, will be given a fraction of the 18 day-salary.
The base salary and seniority are taken into account to calculate the pay which may not be over 20 times the guaranteed minimum salary. The overall amount of the severance pay may also not exceed 12 times the employee’s salary and seniority.
Visa and
immigration
Since Portugal is a member of the EU, immigration in the country follows the rules surrounding Schengen Visa. The same follows for work visas, tourist visas, etc.
These are the documents required for applying for visas to Portugal whether employed or self-employed.
Read more
Your employment toolkit for Portugal
Expand into
150+ countries
Expand globally and hire talent in 150+ countries without having to set up an entity. Use Multiplier's Employer of Record to manage the complete employee experience while having the flexibility to enter new markets.
Overtime Pay
Minimum Wage
Overtime Pay
Overtime work may be required for employees when it becomes necessary by the company. However, employees are compensated for the extra hours they have rendered outside their normal working time. Below is the percentage of additional pay.
- For working days
-
- 25% of the salary will be added for the first hour;
- 137.5% for every subsequent hour
- For non-working days (holidays or weekends)
-
- 150% of the salary
Visa and Immigration
Since Portugal is a member of the EU, immigration in the country follows the rules surrounding Schengen Visa. The same follows for work visas, tourist visas, etc.
These are the documents required for applying for visas to Portugal whether employed or self-employed.
| Employed | Self-Employed |
| Employment contract | A copy of your business license |
| Income Tax Return (ITR) form | Company bank statement of the latest 6 months |
| Leave permission from the employer | Income Tax Return (ITR) |
| Current bank statement of the latest 6 months |