Portugal

Currency
Euro (EUR)
Payroll Frequency
Monthly
Employer Taxes
26.50%

About 

Portugal

Located on the Atlantic Coast of the Iberian Peninsula, Portugal is one of the oldest nation-states in Europe. It is a developed country with an advanced economy and is also investing heavily in renewable energy.

Overview

Population
10,298,252
Language
Portuguese
Capital
Lisbon
Currency
Euro (EUR)
Country code
+351
Min wage
740 EUR per month
Working hours
8
Weekdays
Monday to Friday
Work hours per week
40 hours

Payroll

Cycle
  • There is no official legal date that salaries must be paid, however, it must be paid at least once a month.
  • Portugal has 14 salaries; 12 months, holidays, and Christmas allowances.
Avg employer tax

26.50%

Taxation

Tax breakdown - Employer
  • Social Security: 23.75%
  • Labor Accident Insurance: 1.75%
  • WGF (wage guarantee fund): 1.00%
VAT
  • There are 3 standard/general VAT rates in Portugal:
  • 23% in Continental Portugal
  • In Azores it is 18%
  • In Madeira it is 22%

Holidays / PTO

Public holidays
  • 1 Jan: Friday, New Year's Day
  • 2 Apr: Friday, Good Friday
  • 4 Apr: Sunday, Easter Sunday
  • 25 Apr: Sunday, Liberty Day
  • 1 May: Saturday, Labor Day / May Day
  • 3 Jun: Thursday, Corpus Christi
  • 10 Jun: Thursday, Portugal Day
  • 15 Aug: Sunday, Assumption of Mary
  • 5 Oct: Tuesday, Republic Implantation
  • 1 Nov: Monday, All Saints' Day
  • 1 Dec: Wednesday, Restoration of Independence
  • 8 Dec: Wednesday, Feast of the Immaculate Conception
  • 25 Dec: Saturday, Christmas Day
Sick days
  • Minimum requirement for leave is four days.
  • Social Security pays the following:
  • 55%: for first 30 days
  • 60%: between 31 and 90 days
  • 70%: between 91 and 365 days
  • 75%: up to 366 days
Maternity leave
  • Social security pays the maternity leave
  • 120 days (just for mother): pay 100%
  • 150 days of shared leave (120 mother + 30 father): pay 100%
  • 180 days shared leave (150 mother + 30 father): pay 100%
  • 180 days (150 mother +30 father): pay 83%
  • 150 days: pay 80%
Paternity leave
  • Paternity leave is mandatory for 20 days, with 5 additional days.
  • Social security pays leave at 100% of the average salary for the last six months.

Termination

Termination Process
  • There are three possible grounds for termination: collective dismissal, disqualification due to abolition of position or unsuitability for the job, and disciplinary dismissals.
  • Although the process can change depending on the reason for dismissal, it is important that the employee is informed of the reasons for dismissal before he or she is dismissed.
  • Dismissal for discipline reasons should be heard and the employee given an opportunity to respond.
  • Notification of dismissal should be sent in writing.
  • Notification of dismissal must be sent to the relevant Ministry of Labor service (except for discipline dismissal) as well as to the workers' representative.
  • The worker is also responsible for any vacations accrued or not taken, regardless of the reason and the form of termination.
Notice Period
  • Fixed-term employment contracts expire at the expiration of their stipulated term or renewal, provided that either the employer or employee notify the other party in writing about their intention to terminate the contract 15 days or eight days prior to the deadline.
  • Unfixed-term employment contracts expire when the employer anticipates the end of the term and notifies workers at least seven, 30, or 60 days in advance.
  • This depends on whether the contract has been in effect for up to six months, from six months to two years, or longer.
Severance Pay
  • In the case of the expiration of a fixed-term contract due to declaration by the employer, the employee is entitled to compensation of up to 18 days of base salary for each full year of work.
Probation Period
  • Every contract has an experimental period.
  • According to the type of contract, the number of days varies, up to 8 months.
  • For indefinite employment contracts, the trial period can last as follows:
  • 90 days for most employees.
  • 180 days for employees who hold positions that are technically complex, have high levels of responsibility, or require special qualifications. Or who are in trust positions, seeking their first job, or long-term unemployed.
    240 days for workers engaged in senior management positions.
  • For a fixed-term employment contract, the trial period can last as follows: 30 days for a contract lasting six months or more; 15 days for a fixed-term contract lasting less than six months.

Tax Calculation

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Top Countries
Employer cost
Total monthly cost of employment
GBP 9,633
Gross monthly salary costs
GBP 8,334
Estimated taxes and contributions
GBP 8,334
Employee cost
Net monthly salary
GBP 5,137
Gross monthly salary
GBP 8,334
Estimated taxes & social security
GBP 8,334
Employer cost
Total yearly cost of employment
GBP 9,633
Gross yearly salary costs
GBP 8,334
Estimated taxes and contributions
GBP 8,334
Employee cost
Net yearly salary
GBP 5,137
Gross yearly salary
GBP 8,334
Estimated taxes & social security
GBP 8,334
Request a detailed quotation

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Portugal

Currency
Euro (EUR)
Payroll Frequency
Monthly
Employer Taxes
26.50%

About 

Portugal

Located on the Atlantic Coast of the Iberian Peninsula, Portugal is one of the oldest nation-states in Europe. It is a developed country with an advanced economy and is also investing heavily in renewable energy.

Overview

Population
10,298,252
Language
Portuguese
Capital
Lisbon
Currency
Euro (EUR)
Country code
+351
Min wage
740 EUR per month
Working hours
8
Weekdays
Monday to Friday
Work hours per week
40 hours

Payroll

Cycle
  • There is no official legal date that salaries must be paid, however, it must be paid at least once a month.
  • Portugal has 14 salaries; 12 months, holidays, and Christmas allowances.
Avg employer tax

26.50%

Taxation

Tax breakdown - Employer
  • Social Security: 23.75%
  • Labor Accident Insurance: 1.75%
  • WGF (wage guarantee fund): 1.00%
VAT
  • There are 3 standard/general VAT rates in Portugal:
  • 23% in Continental Portugal
  • In Azores it is 18%
  • In Madeira it is 22%

Holidays / PTO

Public holidays
  • 1 Jan: Friday, New Year's Day
  • 2 Apr: Friday, Good Friday
  • 4 Apr: Sunday, Easter Sunday
  • 25 Apr: Sunday, Liberty Day
  • 1 May: Saturday, Labor Day / May Day
  • 3 Jun: Thursday, Corpus Christi
  • 10 Jun: Thursday, Portugal Day
  • 15 Aug: Sunday, Assumption of Mary
  • 5 Oct: Tuesday, Republic Implantation
  • 1 Nov: Monday, All Saints' Day
  • 1 Dec: Wednesday, Restoration of Independence
  • 8 Dec: Wednesday, Feast of the Immaculate Conception
  • 25 Dec: Saturday, Christmas Day
Sick days
  • Minimum requirement for leave is four days.
  • Social Security pays the following:
  • 55%: for first 30 days
  • 60%: between 31 and 90 days
  • 70%: between 91 and 365 days
  • 75%: up to 366 days
Maternity leave
  • Social security pays the maternity leave
  • 120 days (just for mother): pay 100%
  • 150 days of shared leave (120 mother + 30 father): pay 100%
  • 180 days shared leave (150 mother + 30 father): pay 100%
  • 180 days (150 mother +30 father): pay 83%
  • 150 days: pay 80%
Paternity leave
  • Paternity leave is mandatory for 20 days, with 5 additional days.
  • Social security pays leave at 100% of the average salary for the last six months.

Termination

Termination Process
  • There are three possible grounds for termination: collective dismissal, disqualification due to abolition of position or unsuitability for the job, and disciplinary dismissals.
  • Although the process can change depending on the reason for dismissal, it is important that the employee is informed of the reasons for dismissal before he or she is dismissed.
  • Dismissal for discipline reasons should be heard and the employee given an opportunity to respond.
  • Notification of dismissal should be sent in writing.
  • Notification of dismissal must be sent to the relevant Ministry of Labor service (except for discipline dismissal) as well as to the workers' representative.
  • The worker is also responsible for any vacations accrued or not taken, regardless of the reason and the form of termination.
Notice Period
  • Fixed-term employment contracts expire at the expiration of their stipulated term or renewal, provided that either the employer or employee notify the other party in writing about their intention to terminate the contract 15 days or eight days prior to the deadline.
  • Unfixed-term employment contracts expire when the employer anticipates the end of the term and notifies workers at least seven, 30, or 60 days in advance.
  • This depends on whether the contract has been in effect for up to six months, from six months to two years, or longer.
Severance Pay
  • In the case of the expiration of a fixed-term contract due to declaration by the employer, the employee is entitled to compensation of up to 18 days of base salary for each full year of work.
Probation Period
  • Every contract has an experimental period.
  • According to the type of contract, the number of days varies, up to 8 months.
  • For indefinite employment contracts, the trial period can last as follows:
  • 90 days for most employees.
  • 180 days for employees who hold positions that are technically complex, have high levels of responsibility, or require special qualifications. Or who are in trust positions, seeking their first job, or long-term unemployed.
    240 days for workers engaged in senior management positions.
  • For a fixed-term employment contract, the trial period can last as follows: 30 days for a contract lasting six months or more; 15 days for a fixed-term contract lasting less than six months.

Tax Calculation

*
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
PT
*
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
Top Countries
Employer cost
Total monthly cost of employment
GBP 9,633
Gross monthly salary costs
GBP 8,334
Estimated taxes and contributions
GBP 8,334
Employee cost
Net monthly salary
GBP 5,137
Gross monthly salary
GBP 8,334
Estimated taxes & social security
GBP 8,334
Employer cost
Total yearly cost of employment
GBP 9,633
Gross yearly salary costs
GBP 8,334
Estimated taxes and contributions
GBP 8,334
Employee cost
Net yearly salary
GBP 5,137
Gross yearly salary
GBP 8,334
Estimated taxes & social security
GBP 8,334
Request a detailed quotation