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Benefits Guide
Employing in Portugal
Portuguese labour law is not contained under a single law. The main sources are the Portuguese Constitution which sets forth fundamental rights and principles regarding both employees and employers, European legislation, the Portuguese Employment Code and the Regulation of the Employment Code. Furthermore, collective bargaining agreements as well as individual agreements also play a role.
The vast majority of rules stipulated by the Portuguese Employment Code are mandatory and cannot be modified either by collective bargaining or agreement of the parties. All workers in Portugal are protected by Portuguese employment law.
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The minimum wage in Portugal is EUR 870 per month or EUR 12,180 per year, based on a standard 40-hour work-week. This rate is effective starting January 1, 2025.
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In Portugal, employers have to provide 40 hours of professional training per year to all employees with an indefinite contract. If these hours are not provided and duly registered, they will have to be paid upon termination according to Portuguese legal requirements.
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For customers of Remote, all employee payments will be made in equal monthly instalments on or before the last working day of each calendar month, payable in arrears.
In Portugal, employees get 14 months of pay payments each year:
The allowances are paid with the same amount as a full month's pay.
Both the Subsídio de Férias (Holiday Allowance) and the Subsídio de Natal (Christmas Allowance) get taxed the same as any other payment for IRS & Social Security.
Employees can choose to earn their pay in 14 payments , with the holiday allowance being paid during Summer and the Christmas allowance being paid around the Christmas period.
Conversely, workers can elect to be paid 12 times, with those two extra payments being pro-rated throughout the year (“duodécimos”). At Remote we follow an internal policy of accommodating this change for all employees that ask for a review once per year, usually during the start of the year.
The payments have to be paid at least once a month and by the last working day. At Remote, this payment is usually made on the 25th of the month.
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We can help you get a new employee started in Portugal fast. The minimum onboarding time we need is only 3 working days.
Our team ensures your employees are onboarded and paid as quickly as possible while keeping your business compliant with all local employment legislation. The minimum onboarding time begins after the employee submits all required information onto the Remote platform. The onboarding timeline is also dependent upon registration with local authorities.
For all non-nationals of the country of employment, the Right to Work assessment (if applicable) will add three extra days to the total time to onboard. There may be extra time required if we need to follow-up on the right to work assessment.
Please note, payroll cut-off dates can impact the actual first day of employment. Remote has a payroll cut-off date of the 10th of the month unless otherwise specified.
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13 Public holidays
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Grow your team in Portugal with Remote
Want to employ workers in Portugal? Companies hiring in Portugal are typically required to either own a local legal entity or work with a global employment platform like Remote that can legally provide employment services in the country.
Remote can employ team members in Portugal and keep you compliant. Remote can hire, onboard, and pay your Portugal team so you don't have to set up local HR services in the region. Remote also makes it easy to pay contractors in Portugal. Sign up now to get started or talk to an expert for more details.
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Portugal, like many other countries, treats self-employed individuals or contractors and full-time employees differently. Misclassification of contractors in Portugal may lead to fines and penalties for the offending company.