To calculate the salary and taxes in Portugal please click here.
What are the minimum wage requirements?
The Minimum Wage is EUR 775,83 per month.
Contributions & Taxes
How much are the contributions & taxes?
Individual Income Tax
Individual income taxes might be as high as 48 percent. The calculation of income tax is done using progressive rates. Additional elements may have an impact on average rates.
|Income per year in EUR||Tax Rate (%)|
|0 to 7,112||14.5%|
|Up to 10,732||25%|
|Up to 20,322||28.5%|
|Up to 25,075||35%|
|Up to 36,967||37%|
|Up to 80,882||45%|
The cost to the employer is often calculated as 27.9% of the employee’s salary:
- Social Security – 23.75%
- Compensation fund – 1.0%
- Work insurance policy – 1.4%
- Labor accident insurance – 1.75%
- Health at work – €120
- Safety at work – €3
What is the payroll cycle?
Payroll in Portugal typically runs on a monthly cycle, with salaries due on the fifth of the following month.
Is there 13th salary in Portugal?
Employees often receive bonuses in June and December that are equal to one month’s pay. The 13th and 14th month bonuses are what are referred to as this.
The employees have the option of a 1/12 or 1/14 salary distribution method.
What are the main Labor Rules?
Termination must be based on performance or redundancy in Portugal, where it might be complicated (e.g. serious cause, unfit for the role, extinction of the role).
Compliant terminations include:
- Employee’s voluntary participation
- Both parties agree.
- Employer unilaterally on the basis of: Realistic reasons.
- Dismissal for cause
- Inappropriateness for the task.
- When an employee is on parental leave, pregnant, or nursing a baby, a contract cannot be terminated until it has expired.
The type of termination, length of employment, and duration of the contract will all affect the amount of notice.
The notice period is seven days and one week long during the probationary phase.
Termination due to redundancy or employer-determined unsuitability for the job: 30 days if fewer than two years of service have been provided.
If the period of service is less than ten years, 60 days.
if the period of service totals 10 or more years, 75 days.
If the period of employment was less than two years, the employee’s voluntary termination would take place after 30 days.
if the period of service is two years or longer, 60 days.
Termination for Good Reason
The notification period is optional.
Fixed-term contract non-renewal: 15 days for the employer.
For the employee, 8 days.
Severance pay is due to workers who are let go in Portugal due to redundancy or lack of appropriateness for the position.
Severance pay for contracts with an indeterminate duration is equal to 12 days’ pay for each year of service. 12 months or more of base pay
Severance pay for fixed-term contracts is 18 days for each year of service.
Employer and employee may agree to higher severance packages.
Leave and Benefits
Leave and Benefits rules
Vacation Days in Portugal
The required minimum is 22 days of employment (20 in the first year of employment with the company). The remaining yearly leave may be used only until April of the following year if at least 15 days are used in the accrued year. Portugal has laws that expressly prohibit businesses from paying workers more money in exchange for taking paid time off.
Portugal Sick Leave
Employees who miss work due to illness or injury receive sick leave benefits from Portuguese social security. Employees are eligible for up to 1,095 days of sick leave. Usually, between 55% and 75% of the employee’s wage is paid.
Collective bargaining agreements may have explicit provisions governing employee illness or injury.
Maternity/Paternity Leave in Portugal
Employees who are female are entitled to 30 days of paid maternity leave before having a child and 6 weeks after. In Portugal, maternity leave can be taken either entirely at once or in two successive leaves, each lasting 90 days. The employee is entitled to an additional 30 days if she had twins.
A 150-day leave option at 80% of income is also available to the employee.
In Portugal, fathers are entitled to 10 days of paid paternity leave, which must be used within 30 days of the child’s birth. These 5 days must be taken back-to-back.
Health Security & Private Insurance
Direct patient contact is used by government health practitioners to provide medical care. Benefits include hospitalization, laboratory tests, dental care, maternity care, general and specialist healthcare, and transportation.
* Native Teams can support you in finding the best private insurance in the country. Contact us and we will send a comparison of insurance packages and prices*
Relocation and Work Permits
Native Teams will apply for your work visa in the nation on your behalf and serve as your Employer of Record. All the required documents can be uploaded using our app. Until you have your work and residency visa, Native Teams will support you by providing you with frequent information on the progress.
How long is the Visa / Work Permit process?
Depending on the authorities and the given documents, 2 to 4 weeks.
Which documents do you need?