Business · Employer of record

Employer of record in Portugal

Employing someone in Portugal through an employer of record: social security on top of salary, the minimum wage, 22 days' holiday, the Christmas and holiday subsidies that make 14 payments a year, probation, notice and dismissal pay.

Checked on 16 October 2026. The headline rules for a standard employee, from official sources where they opened and law firm, PwC or specialist publisher guides where they didn't; each line names its source. Sectors, collective agreements and contracts can change them. This is general information, not legal advice.

Know this first

  1. There's no dismissal at will: dismissal without just cause, or for political or ideological reasons, is banned.
  2. A labour reform ("Trabalho XXI") was voted down by parliament on 19 June 2026, so the 2023 rules still apply. We found nothing showing it has come back since.
  3. Probation and notice are from an unofficial copy of the Labour Code and a law firm guide, because the official consolidated text didn't open for us.

Sources: Cerejeira Namora, Marinho Falcão, Legal 500 guide to Portugal, 2026, Rádio Renascença, 19 June 2026

Employing someone in Portugal

Employer costs on top of salary
23.75% employer social security (the employee pays 11%). Neither PwC source mentions a ceiling for employees, and we couldn't check this on an official page. The holiday and Christmas subsidies count towards it. PwC Portugal, Guia Fiscal 2026, social security, PwC Worldwide Tax Summaries, Portugal, October 2026
Minimum wage
€920 a month on the mainland from 1 January 2026, paid 14 times a year with the subsidies. Madeira and the Azores set their own. DGERT (Ministry of Labour), December 2025
Holiday
22 working days a year; in the first year, 2 days per month worked, up to 20. 13 public holidays. Câmara Municipal de Coimbra, guide for foreign workers, January 2026
Working hours
8 hours a day and 40 a week; flexible arrangements can stretch this to 12 and 60. Câmara Municipal de Coimbra, guide for foreign workers, January 2026
Probation
90 days for most staff; 180 for complex, technical or high-trust roles, first-job seekers and the long-term unemployed; 240 for directors and senior managers. After 60 days the employer must give 7 days' notice to end it, and 15 after 120. Código do Trabalho art. 112 (sabiasque.pt), Cerejeira Namora, Marinho Falcão, Legal 500 guide to Portugal, 2026
Notice from the employer
For dismissals on objective grounds: 15 days under a year's service, 30 days under 5 years, 60 days under 10 years, 75 days after that. Código do Trabalho art. 363 (sabiasque.pt), Cerejeira Namora, Marinho Falcão, Legal 500 guide to Portugal, 2026
Severance
For collective dismissal, redundancy or unsuitability: 14 days' base pay (plus seniority pay) per complete year of service, for service since 1 May 2023; earlier service uses older formulas. Monthly pay in the formula is capped at 20 times the minimum wage, and the total at 12 months' pay or 240 times the minimum wage. Letting a fixed-term contract expire costs 24 days a year. Azores labour inspectorate, summary of Lei 13/2023, Cerejeira Namora, Marinho Falcão, Legal 500 guide to Portugal, 2026
Extra pay the law requires
A Christmas subsidy of one month's pay by 15 December, and a holiday subsidy of one month's pay before the holiday is taken: 14 payments a year. A meal allowance isn't required by law in the private sector, but is common; a commercial guide gives the 2026 tax-free limits as €6.15 a day in cash and €10.46 on a card. Câmara Municipal de Coimbra, guide for foreign workers, January 2026, Montepio, meal allowance, December 2025
Contract
The key terms must be given in writing within 7 days of starting. A contract with someone from outside the EEA must be written, and ACT notified before work starts; fixed-term and part-time contracts are generally required to be written too, though we couldn't check the official text. In practice, always use a written contract. Câmara Municipal de Coimbra, guide for foreign workers, January 2026, Azores labour inspectorate, summary of Lei 13/2023, Código do Trabalho art. 5 (sabiasque.pt)
Payroll and tax
Normally paid monthly. The employer withholds income tax (IRS), using the 2026 tables, and the employee's 11% social security. Câmara Municipal de Coimbra, guide for foreign workers, January 2026, Autoridade Tributária, CIRS art. 99, PwC Portugal, 2026 withholding tables
Sick pay
Paid by social security, not the employer: nothing for the first 3 days (with some exceptions, such as a hospital stay), then 55% to 75% of pay depending on how long it lasts, according to a bank's guide. Caixa Geral de Depósitos, sick pay

Providers and what they say about Portugal

What each provider's own website says about Portugal, in order of its published starting price. None of them publishes a separate price for Portugal; the starting prices are worldwide or regional (Papaya quotes EUR 650 in Europe), and what you pay is set by quote.

ProviderCovers Portugal?What it saysStarting price a month
SkuadYes, on its own siteListed in its coverage listFrom USD 199Go to Skuad
Pebl (formerly Velocity Global)Yes, on its own site-USD 399Go to Pebl (formerly Velocity Global)
MultiplierYes, on its own siteSays it owns its Portuguese entityFrom USD 459 (annual), USD 499 monthlyGo to Multiplier
DeelYes, on its own siteSays it has its own entityFrom USD 599Go to Deel
RemoteYes, on its own site-From USD 599Go to Remote
G-P (Globalization Partners)Has its own page for it-From USD 599Go to G-P (Globalization Partners)
Atlas HXMYes, on its own site-From USD 599Go to Atlas HXM
Papaya GlobalYes, on its own site-From USD 650 (EUR 650 in Europe)Go to Papaya Global
OysterImplied on its own site-From USD 699Go to Oyster
RipplingNot statedSays 80 countries, with no listQuote onlyGo to Rippling

Coverage is each company's own claim, from its country pages and coverage lists; we haven't checked how each one employs there. Ask whether it uses its own company or a partner in Portugal.

Other countries

Employer costs, leave, notice, severance and the catches, with the providers that cover each one.

United KingdomIrelandGermanyFranceNetherlandsSwedenSwitzerlandBelgiumSpainItalyPolandRomaniaCanadaAustraliaSingaporeJapanIndiaPhilippinesSouth AfricaMexicoBrazilColombiaChileArgentina

All 25 countries side by side: employer cost at your salary, holiday, notice and redundancy pay

Where this comes from. Government, social security and labour ministry pages, the laws themselves, PwC Worldwide Tax Summaries, law firm briefings and specialist publishers, each named next to what it supports, and each provider's own website for what it covers. All read on 16 October 2026. Totals marked "our sum" are our addition of the source's rates.

This is not legal or tax advice. Rules change, and sectors and collective agreements add their own. Ask your provider, or a local adviser, for the rules that apply to your hire.

How we make money from this page. Some links may earn us a commission, and they are marked "Affiliate link" where they do. The providers appear in order of published starting price, which doesn't depend on that.