Portugal at a glance
Taxes in Portugal
Employer Contributions
| Contribution | Rate |
|---|---|
| Total employer tax | 26.5% |
| Social insurance | 23.75% (22.3% for nonprofits) |
| Labour accident insurance | 1.75% |
| Wage Guarantee Fund | 1% |
| Contribution | Rate |
|---|---|
| Total employer tax | 26.5% |
| Social insurance | 23.75% (22.3% for nonprofits) |
| Labour accident insurance | 1.75% |
| Wage Guarantee Fund | 1% |
| Contribution | Rate |
|---|---|
| Total employee tax | 25.5% – 64% |
| Social insurance | 11% |
| Solidarity tax (income €80,000–€250,000) | 2.5% |
| Gross Income | Tax Rate |
|---|---|
| Up to €8,059 | 12.50% |
| €8,060 – €12,160 | 16% |
| €12,161 – €17,233 | 21.50% |
| €17,234 – €22,306 | 24.40% |
| €22,307 – €28,400 | 31.40% |
| €28,401 – €41,629 | 34.90% |
| €41,630 – €44,987 | 43.10% |
| €44,988 – €83,696 | 45% |
| Over €83,696 | 48% |
Employer of Record in Portugal
How Remote& EOR Works
Remote& acts as the legal employer of your Portuguese workers — managing SS (Segurança Social) filings, payroll, statutory benefits, and employment contracts while you direct the work.
| Party | Role |
|---|---|
| Your Company | Manages work tasks, performance, and team direction |
| Remote& | Runs payroll, files SS and IRS taxes, administers benefits, ensures legal compliance |
| Employee | Works for your company under a locally compliant Portuguese contract |
Ask Remi:
"Hire a data engineer in Portugal — €3,800/month, starting next quarter" Remi handles everything: contract, Segurança Social registration, payroll setup, and benefits enrollment.
Benefits in Portugal
- Christmas subsidy (13th month) and holiday subsidy (14th month) — both mandatory
- Basic insurance through the national system
- Wage Guarantee Fund contributions
- Workers' compensation insurance
- Meal vouchers
- Public transport allowance
- Supplementary pension
- Supplementary health and life insurance
- Commission structures
- Flexible working hours and remote work
- Phone bill coverage
- Gym membership
Leave entitlements
| Leave type | Entitlement |
|---|---|
| Paid Annual Leave | 22 days + public holidays |
| Sick Leave | Up to 1,095 days |
| Maternity Leave | 120–150 consecutive days |
| Paternity Leave | 28 days |
| Parental Leave | 120–150 days |
Employment conditions
Probation
Typically 90 days, extendable to a maximum of 240 days in certain cases.
Employee Rights & Protections
Portuguese workers are entitled to: written employment contract signed by both parties, payslip requirements, special protections during pregnancy, safe workplace, whistleblower protection, redundancy payments, professional training rights, and pay transparency.
Payments
End of employment in Portugal
Mutually agreed terminations are relatively straightforward. Employer-initiated terminations require valid documented reasons, proper disciplinary procedures, and statutory severance of 12 days' basic pay plus seniority allowances per year of service. Higher amounts are often negotiated, especially in mass redundancies. Notice periods scale with service duration. Dismissed workers may bring claims before labour tribunals.
Frequently asked questions
Four routes: run payroll from HQ (legally problematic long-term); engage contractors (not compliant for full-time exclusive workers — Portuguese law is clear on this); establish a local entity; or use Remote& as Employer of Record for the fastest compliant path.