Hire employees and manage payroll in Portugal

Our guide to employing in Portugal.

Country Facts

The Portuguese Republic is an EU-member and also a member of the UN, the Schengen Area, the Council of Europe and the Eurozone, OECD and NATO. By nominal GDP it is ranked as the 47th economy in the world and by Human Development Index it is categorized as very high, on 38th place globally.





Euro (EUR)

Languages spoken

Portuguese, Mirandese

Population size (2020)

10,3 million

Ease of doing business (world bank ranking)


Cost of living index(2021)


Payroll frequency


VAT - standard rate


GDP - real growth rate(2020)


Employing in Portugal

Much of the EU’s legal system with regards to employment is similarly applied in Portugal. Also its directives regulating labour relations originate in the EU and are thus very similar to many EU neighbours. When it comes to the regulatory landscape surrounding collective labour, Portugal also uses collective employment contracts. Foreigners employed in Portugal have strong legal protection, and are on equal terms with local portuguese employees.

There is no law that states that employment contracts have to be in written, except for when it comes to foreign employees or contracts that are only part-time or fixed term. Portuguese is widely required, among public authorities,as the language that the local paperwork is done in, and so it is recommended to use this locally. It is often the case that a range of obligatory statutory provisions are included in an employment contract, guided by collective bargaining agreements and the Portuguese Employment Code. The following components are obligatory in an employment contract:

  • Full identity of employer
  • Working periods
  • Applicable Collective Bargaining Agreements
  • Notice period for termination
  • Date of employment
  • Place of work
  • Employee’s professional category
  • Description of activities performed
  • Vacation duration
  • Salary amount

List of Public Holidays - 2022

Date Holiday Name

1st January

New Years Day

2nd April

Good Friday

4th April

Easter Sunday

25th April

Freedom Day

1st May

Labour Day

24th May

Day of the Azores

3rd June

Corpus Christi

10th June

Portugal Day

24th June

Feast of St. John the Baptist

1st July

Madeira Day

5th October

Republic Day

1st November

All Saints Day

1st December

Restoration of Independence

8th December

Immaculate Conception Day

25th December

Christmas Day

26th December

Christmas Holiday

Minimum wage

The nationwide minimum wage in Portugal in 2021 is 665 euro / month. This applies both to locally hired Portuguese employees and employees working on a Temporary Stay Visa or a Residence Visa for Local Hires.

Salary payouts

Payroll in Portugal is usually run on a monthly basis and wages are paid out before the last day of every month. 
Portugal also has mandatory 13th and 14th salary payouts, which are to be paid to all employees in June and December.

Taxes in Portugal

Learn how employment taxes and statutory fees affect your payroll and your employees’ paychecks in Portugal


Corporate income tax rate : 21%

Family, Pension and Unemployment insurance : 23.75% of gross salary

Wage guarantee fund : 1% of gross salary

Labour accident insurance : Employers are obliged to purchase insurance premiums to cover occupational accidents for employees


Family, Pension and Unemployment insurance : 11% of gross salary

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