Skip to content

Type

Try searching for: Click to search

Portugal

Global Employment Solutions & PEO in Portugal

Omnipresent makes it fast and easy to employ remote talent in Portugal. We take care of payroll, compliance, taxes, and admin so you can focus on growing your business.

Portugal

Omnipresent Employment Rating

Capital City
Lisbon
Currency
Euro (€, EUR)
Language
Portuguese
Payroll Frequency
Monthly
Employment Costs
High
Termination
Hard
Population

How do Omnipresent Global Employment Solutions Work?

Omnipresent provides global employment solutions and professional employment organisation (PEO) services for companies looking to grow and build out a global team in Portugal. Traditional methods of establishing global employment and subsidiaries in Portugal typically take months and can incur heavy costs. Omnipresent's global employment solutions and PEO services is helping hundreds of organisations onboard new employees in Portugal in a matter of days with full compliance of local labour laws. We use a tech-forward approach to streamline the process.

  • Your company conducts the hiring and candidate selection process in Portugal.
  • Omnipresent hires the selected candidate through our local professional employment organisation in Portugal.
  • We take care of ensuring your new employee is hired in compliance with local labour laws, payroll regulations, benefits and more -- all without needing to set up a subsidiary in Portugal.
  • The individual is legally contracted by Omnipresent but assigned to work for your company and reports to a manager or team in your organisation as your full-time employee.

Curious to learn more?

Employer Costs in Portugal

Employer costs include Social Security Tax, Meal Allowance, and Compensatory Fund Tax. Use the OmniCalculator to estimate costs, or contact us for further information.

Employee Income Taxes in Portugal

The rate of personal taxation varies depending on the income tax bracket the individual belongs to. This ranges between 14.5% - 45%.

Employee Social Contributions in Portugal

Employee contributions include Social Security.

Working Hours in Portugal

Maximum working hours are 8 hours/day and 40 hours/week. Working week is 5 days a week. Overtime is restricted to only limited circumstances and compensated.

Employees cannot opt out of overtime, unless when determined by law.

Holidays & Vacation in Portugal

Please note that the below information covers national holidays and should be used for informative purposes only and not as a guarantee for payroll purposes. While we strive to offer you accurate information, public holidays are subject to frequent changes and can be dependent on regional differences. Should you need more detailed information on public holidays, please consult the government pages of the state and/or the local municipality of your employee.

  • Saturday, Jan 01, 2022 - New Year's Day (Ano Novo)
  • Friday, Apr 15, 2022 - Good Friday (Sexta-Feira Santa)
  • Sunday, Apr 17, 2022 - Easter Sunday (Páscoa)
  • Monday, Apr 25, 2022 - Liberty Day (Dia da Liberdade)
  • Sunday, May 01, 2022 - Labour Day (Dia do trabalhador)
  • Friday, Jun 10, 2022 - Portugal Day (Dia de Portugal)
  • Thursday, Jun 16, 2022 - Corpus Christi (Corpo de Deus)
  • Monday, Aug 15, 2022 - Assumption (Assunção de Maria)
  • Wednesday, Oct 05, 2022 - Implantação da República (Implantação da República)
  • Tuesday, Nov 01, 2022 - All Saints' Day (Todos os santos)
  • Thursday, Dec 01, 2022 - Restauração da Independência (Restauração da Independência)
  • Thursday, Dec 08, 2022 - Immaculate Conception (Imaculada Conceição)
  • Sunday, Dec 25, 2022 - Christmas Day (Natal)

Sick Leave Entitlement in Portugal

Paid sick leave is typically paid by the employer for up to 3 days. From day 4, social security sick leave kicks in for up to 1095 days subject to compliance of applicable legal requirements. The government typically pays up to 55%-75% of the employees salary during this time depending on duration of sickness.

Parental Leave in Portugal

Maternity leave: 120 days at full pay, paid by Social Security. Max. 30 days before birth and min. 42 days after birth.

Paternity leave: 20 days at full pay, paid by Social Security.

Parental leave: After the required days of maternity leave (42 days) and paternity leave (20 days), parents can jointly take the remainder of days (120 - 150 days total). Pay will vary between 80-100% depending on days taken, paid by Social Security. Parents may be eligible for other unpaid parental leave.

Annual Leave Entitlement in Portugal

Minimum paid annual leave is 22 working days per calendar year (excl. PH). Right to leave takes effect as of 1 January each calendar year. During 1st year of employment and after 6 months of service, employees earn 2 days leave per month worked up to a maximum of 20 working days per year.

Carrying over annual leave Holidays can be carried over to 30 April of the following year, if the employer agrees.

Severance Pay Entitlement in Portugal

ITC: Severance payments will only be mandatory if you dismiss an employee due to their failure to adapt to the job position or due to the extinction of their job position. Calculated depending on seniority and the length of the contract.

Project: Severance payments are mandatory unless the employee is dismissed for disciplinary reasons. Accrues each month and charged as a standard part of the monthly payroll (18 days salary per year worked). Paid to the employee at the expiration of the project. 

In both cases severance will not be payable if the employee is dismissed during their probation period.

Termination in Portugal

ITC: Reasons for termination include termination by mutual agreement, dismissal for disciplinary grounds, dismissal for unsuitability for the job or termination by the employee. Several formal procedures must be followed. Notice periods will vary depending on the term of the contract between 7-60 days minimum. 

Project: Process involves notifying the employee, notifying the Social Security and Tax Authority and filling out an unemployment document. Can be terminated with 7 days notice in the first 6 months, or with 30 days notice between 6 months and 2 years of service.

In both cases termination during the first 60 days of a probation period will not require notice.

Estimate employment costs with OmniCalculator

Global Employment Cost Calculator

Get an estimate of the employment costs for hiring in Portugal.

United Kingdom

GBP 60,000 annual salary

Base Salary
Employer's Costs (Estimate)
VAT
Average Monthly Employer Cost *

* These employer costs are subject to frequent updates, and can depend on a variety of employee variables. They are only a ballpark estimate, and the actual figure may be above or below the quoted amount based on a number of variables. These estimates represent a monthly average each year. In some cases, contribution maximums will lead to payments earlier in the year being larger, before being reduced once max is hit. If a 13th and 14th month are applicable, these have been pro-rated into the gross salaries.

Expertise at your fingertips

Book your free consultation with one of our experts to see how easy it can be to employ in .

Employ the Best Talent, Anywhere in the World

Grow Your Global Team

The benefits of growing a global team and finding the best talent anywhere in the world are endless. It's important to note that labour laws and regulations in Portugal are strict with penalties for non-compliance. Let our team take care of the details such as payroll, benefits, compliance, taxes, and admin so you can focus on growing your business. We're here to help you every step of the way.

Our clients rate us over 4.7 out of 5.
Want to see why?

Source: Trustpilot and G2 reviews in November 2022