Talent Wiki - Portugal
Your quick guide on talent and labor compliance norms in Portugal
Capital
Lisbon
Currency
Euro (EUR)
Languages
Portuguese
Payroll Frequency
Monthly
GDP per Capita
$20,831
Employer Tax
23.75%
Talent Overview
Portugal is ranked 32nd among the 158 countries in the Readiness for Frontier Technologies Index. Tech start-ups are opening all over the country which in turn strengthens their IT sector. This has led to more opportunities for the Portuguese talent pool and for investors.
Aside from Portugal’s IT industry, their industrial structure focuses more on foreign trade as they leverage agricultural exports.
Major economic hubs:
Lisbon, Madeira
Skills in demand:
ICT Professionals, Marketing, Creative and Design Professionals, Hospitality, Teaching Professionals, Health-Related Occupations, Tourism Professionals
Local Universities
Universidade de Lisboa
RANKING
Local: 1
World : 179
Universidade do Porto
RANKING
Local: 2
World : 232
Universidade de Coimbra
RANKING
Local: 3
World : 371
Universidade Nova de Lisboa
RANKING
Local: 4
World : 542
Universidade do Minho
RANKING
Local: 5
World : 564
Salary Data
Below are the average monthly salaries for some jobs in Portugal:
| Job Title | Average Monthly Salary (EUR) | Average Monthly Salary (USD) |
| Technical Product Engineer | 2,500 | 2,715 |
| Developers/ Programmers | 2,520 | 2,736 |
| Data Analyst | 2,480 | 2,693 |
| UX Designer | 2,250 | 2443 |
| Project Manager | 2,920 | 3,171 |
| Sales Executive | 3,450 | 3,746 |
| Chief Accountant | 2,760 | 2997 |
Talent Sourcing Tips
Top Local Job Boards:
Indeed Portugal, Adecco Portugal, Net-Empregos, BonsEmpregos
Number of LinkedIn users:
4,170,000
Top Recruitment Agencies:
Employing in Portugal
You must know Portugal’s employment laws, benefits, payroll, and taxes to successfully onboard employees for your company. To avoid disputes and problems in hiring, the section below will provide you with the needed information to onboard employees, problem-free.
Employee Contract
Employment contracts in Portugal can either be written or oral which includes everything within the provision of Portugal’s Labor Law.
Probation Period
The probationary period for employees is a minimum of 3 months to a maximum of 8 months.
Public and Provincial Holidays 2023
| Date | Holiday | Type |
| 1 Jan | New Years day | National Holiday |
| 7 Apr | Good friday | National Holiday |
| 9 Apr | Easter Sunday | National Holiday |
| 25 Apr | Liberty day | National Holiday |
| 1 May | Labor day | National Holiday |
| 8 Jun | Corpus Christi | National Holiday |
| 10 Jun | National day | National Holiday |
| 13 Jun | Saint Anthony’s day | National Holiday |
| 15 Aug | Assumption day | National Holiday |
| 5 Oct | Implantation of the Republic | National Holiday |
| 1 Nov | All Saints’ day | National Holiday |
| 1 Dec | Independence Restoration day | National Holiday |
| 8 Dec | Feast of the Immaculate Conception | National Holiday |
| 25 Dec | Christmas day | National Holiday |
Employee Leaves
| Type of leave | Time period | Mandatory |
| Annual leave/Earned Leave | 22 days | Yes |
| Sick Leave | 370 days | Yes |
| Maternity Leave | 16 weeks | Yes |
Payroll
Payroll Cycle
Workers in Portugal are paid on a monthly basis. Wages are released a day before the end of the month.
Minimum Wage
The National Minimum Wage in Portugal is 705 EUR/ month. A minimum wage is also set for the Autonomous Region of Azores at 740.25 EUR/ month and for the Autonomous Region of Madeira at 722.00 EUR/month.
Overtime Pay
Overtime work may be required for employees when it becomes necessary by the company. However, employees are compensated for the extra hours they have rendered outside their normal working time. Below is the percentage of additional pay.
Bonus
13th Month Pay
It is mandatory to provide a 13th month salary for employees in Portugal. It is paid annually by 15th December of each year.
Employee Benefits
Below are some of the benefits that are offered for Portuguese employees:
- Work Accident Insurance
- Social Security
- Healthcare Insurance
- Pension
Taxes
Employer Payroll Tax
| Tax Rate (Commercial Entity) | Contribution |
| 23.75% | Social Security |
Employee Payroll Tax
| Tax Rate (Commercial Entity) | Contribution |
| 11% | Social Security (also covers family, pension and unemployment benefits) |
Employee Income Tax
| Taxable income (EUR*) | Tax rate (%) | Deductible Amount (EUR) | |
| Over | Below | ||
| 0 | 7,116.00 | 14.5% | 0 |
| 7,116.00 | 10,736.00 | 23% | 604.86 |
| 10,736.00 | 15,216.00 | 26.5% | 980.63 |
| 15,216.00 | 19,696.00 | 28.5% | 1,284.99 |
| 19,696.00 | 25,076.00 | 35% | 2,565.21 |
| 25,076.00 | 36,757.00 | 37% | 3,066.79 |
| 36,757.00 | 48,033.00 | 43% | 5,455.84 |
| 48,033.00 | 75,009.00 | 45% | 6,176.56 |
| 75,009.00 | – | 48% | 8,426.51 |
VAT
The VAT rates depend on the location inside Portugal but they have three different rates for three different regions shown in the table below.
| Type | |||
| Standard | Intermediate | Reduced | |
| Portugal | 23% | 13% | 6% |
| Autonomous Region of Madeira | 22% | 12% | 5% |
| Autonomous Region of the Azores | 18% | 9% | 4% |
Offboarding & Termination
In Portugal, terminating an employee’s contract has many occurrences. It could be a collective dismissal due to a company that is downsizing, an employee’s retirement, an employee’s unsuitability for the current role, etc.
Employers are responsible to give their employees a notification in writing not less than ten days before the effective date of termination. During the ten days, the employee or other personnel may express their opposition to the decision in writing. Employers will then have time to evaluate and reach a decision.
The notice period for employees in Portugal is in the range of 7 to 30 days.
The calculation for the employee’s severance pay is based on their seniority period. Regular employees in service for 3 years will receive 18 days of their salary. For every year in excess of the 3 years, they will get an additional pay of 12 days.
Employees who have less than 3 years of work in the company, will be given a fraction of the 18 day-salary.
The base salary and seniority are taken into account to calculate the pay which may not be over 20 times the guaranteed minimum salary. The overall amount of the severance pay may also not exceed 12 times the employee’s salary and seniority.
Visa and Immigration
Since Portugal is a member of the EU, immigration in the country follows the rules surrounding Schengen Visa. The same follows for work visas, tourist visas, etc.
These are the documents required for applying for visas to Portugal whether employed or self-employed.
