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- Employee Cost Calculator
- Portugal
Employee cost calculator in Portugal
Looking to hire in Portugal? Our Employee Cost Calculator gives you a clear view of expenses including taxes and employer contributions.
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Request a demoFrequently Asked Questions (FAQs)
What are the mandatory employment costs and statutory benefits employers must provide in Portugal?
Employers in Portugal must contribute 23.75% of the employee's gross salary to Segurança Social (social security), which covers pensions, sickness, unemployment, and parental leave. Statutory benefits also include a minimum of 22 paid vacation days, 14 public holidays, and mandatory Christmas and holiday bonuses ('subsídio de Natal' and 'subsídio de férias'), each equal to one month's salary.
How are payroll taxes and social security contributions calculated and withheld in Portugal?
Payroll in Portugal requires employers to withhold personal income tax (IRS) according to progressive rates based on employee earnings and to remit both the employer (23.75%) and employee (11%) portions of social security to Segurança Social monthly. Employers are responsible for accurate calculation, withholding, and timely payment of these obligations to the relevant authorities.
What are common hidden or additional costs employers should expect when hiring in Portugal?
In addition to base salary and social security, employers must budget for mandatory 13th and 14th month salaries (holiday and Christmas bonuses), potential severance payments under the Labour Code (Código do Trabalho), and administrative costs related to onboarding and compliance. Relocation expenses, training, and occupational accident insurance (Seguro de Acidentes de Trabalho) are also common indirect costs.
What legal requirements affect total employment costs in Portugal?
Portugal enforces a national minimum wage (Salário Mínimo Nacional), which in 2024 is €820 per month (14 payments per year), and requires employment contracts to be in writing for fixed-term, part-time, or telework arrangements. Termination rules mandate notice periods and severance pay—typically 12 days’ base pay per year of service for contracts initiated after October 2013—while collective bargaining agreements (Contratos Coletivos de Trabalho) can set higher standards for pay and benefits.
What are some country-specific employment practices and norms in Portugal?
Probation periods are standard, usually up to 90 days for most employees (180 days for positions of trust), and indefinite (open-ended) contracts are the norm, though fixed-term contracts are also widely used. Benefits such as meal allowances ('subsídio de alimentação') and flexible work arrangements are customary, and written employment contracts are highly recommended even when not strictly required by law.
