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
- There's no dismissal at will: dismissal without just cause, or for political or ideological reasons, is banned.
- 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.
- 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.
| Provider | Covers Portugal? | What it says | Starting price a month | |
|---|---|---|---|---|
| Skuad | Yes, on its own site | Listed in its coverage list | From USD 199 | Go to Skuad |
| Pebl (formerly Velocity Global) | Yes, on its own site | - | USD 399 | Go to Pebl (formerly Velocity Global) |
| Multiplier | Yes, on its own site | Says it owns its Portuguese entity | From USD 459 (annual), USD 499 monthly | Go to Multiplier |
| Deel | Yes, on its own site | Says it has its own entity | From USD 599 | Go to Deel |
| Remote | Yes, on its own site | - | From USD 599 | Go to Remote |
| G-P (Globalization Partners) | Has its own page for it | - | From USD 599 | Go to G-P (Globalization Partners) |
| Atlas HXM | Yes, on its own site | - | From USD 599 | Go to Atlas HXM |
| Papaya Global | Yes, on its own site | - | From USD 650 (EUR 650 in Europe) | Go to Papaya Global |
| Oyster | Implied on its own site | - | From USD 699 | Go to Oyster |
| Rippling | Not stated | Says 80 countries, with no list | Quote only | Go 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