Hire in Portugal in 3 easy steps

When you think of Portugal, you probably think of Fado music, port wine and Cristiano Ronaldo. We don’t blame you, but you might be surprised to know that it is also home to a strong, qualified workforce of over 5 million. Let us show you why and how you can hire and manage your remote team from this beautiful country.

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Onboard your talent in Portugal in 10 minutes

If you’re considering hiring your next candidate in Portugal, you’ve landed in the right place. After helping hundreds of businesses onboard their remote hires, we have achieved excellent expertise in the country. Our team of experts and tech solutions will make this incredibly easy for you.

Accelerated onboarding​

Fast-track your talent onboarding while ensuring 100% compliance with local regulations.

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Guidance & payroll management

Receive process support by an experienced team of experts & pay your talent on time and in their local currency.

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Net salary calculator

Calculate net salary in Spain post deductions and compare it with the salary in other countries instantly.

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Equipment management

Send laptops and other devices to your remote employees in Portugal through our platform with just a few clicks.

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Hire in Portugal through an EOR

Easily onboard your remote talent in Portugal through our Employer of Record (EOR) solution. Our subsidiaries and network partners make this process fast and 100% compliant.

A quick overview of Portugal

Time zone

UTC+0

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Paid leave

22 days

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Minimum wage

€760

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Currency

EUR

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Public holidays

14 days

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Payroll frequency

Monthly

What makes Portugal's talent great?

The economy in Portugal has made a smooth recovery post-COVID19 and is continuing to strengthen. Portuguese workers are known for being hard working, adaptable and agile. While employment varies by region, nearly half work in service jobs. Salaries are on the rise, but are still below the EU average. The capital Lisbon is a tech hub and has a growing number of IT firms.

With an English Proficiency Index (EPI) of 614, there is a large number of English speakers in the country.

Strong service sector

About 75% of Portuguese talent are employed in the service sector. This means that a majority of the workforce have professions in sales, food services, administrative support, education and healthcare. There’s also a strong focus on innovation and entrepreneurship.

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Highly qualified workforce

Portugal’s workforce is becoming more qualified with time. This is due to younger and more highly-educated people entering the labour market. By 2025, the share of Portugal’s labour force with high-level qualifications will rise to 33% as compared to 24% right now. 

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Strong emphasis on education

Between 2000 and 2021, the share of 25-34 year-olds with tertiary educational qualifications in Portugal increased by 35%. Now, 47% of 25-34 year-olds have a tertiary qualification at the same level as the average across OECD countries.

Get more detailed info about Portugal's hiring landscape

Basic facts

Portugal, officially the Portuguese Republic, lies along the Atlantic coast of the Iberian Peninsula in southwestern Europe. It is the westernmost sovereign state of mainland Europe and is bordered by Spain. Its territory also includes the Atlantic archipelagos of the Azores and Madeira, both of which are autonomous regions with their regional governments. Portugal is a founding member of NATO and entered the European Communities (EC) – now the European Unions (EU) – in 1986. *Please note that the official currency is the currency of remuneration when employed through WorkMotion in Portugal.

Capital

Lisbon

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Population

10.3 M

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VAT - standard rate

23%

Statutory holidays

Portugal has 13 mandatory holidays. There is no substitute holiday system in Portugal, however, it is common to have a bridged weekend, so employees do not have to use their vacation days to enjoy a long weekend. Certain mandatory holidays can be observed on the Monday of the following week when declared by means of specific gazette legislation.

Date Holiday Name
January 1 New Year
April 7 Good Friday
April 9 Easter
April 25 Freedom Day
May 1 Labour Day
June 8 Corpus Christi
June 10 Portugal Day
August 15 Assumption of Mary
October 25 Republic Implantation Day
November 1 All Saints Day
December 1 Restoration of Independence
December 8 Immaculate Conception Day
December 25 Christmas Day

Contract sharing time

The approximate time for sharing the contract with an employee in Portugal ranges from a few minutes to 3 days assuming no special requests or changes to our standard employment contract. Any such requests or changes would need to undergo internal or external review, directly leading to a time delay. If all talent data is available, the contract can be generated immediately.

What you need to know

Labour conditions

Leave / time off

Statutory benefits

Social security contributions are made by both employers and employees, and cover sickness, occupational diseases, maternity, paternity, adoption, unemployment, disability, pension, and death. Employers contribute up to 25.5%, while employees contribute 11%, broken down as follows:

Categories Employer Contribution Employee Contribution
Social Security 23.75% 11%
Labor Accident Insurance 1.75% (varies) -

Health insurance

Portugal has state-sponsored free universal healthcare (Serviço Nacional de Saúde, SNS). Employers do not need to contribute additionally to health insurance besides the comprehensive total of 23.75%.

Accident insurance

The Labor Accident Insurance under Statutory Benefits covers all accident-related injury claims for employers.

Unemployment Insurance

Unemployment benefits (Subsídio de desemprego) are cash benefits awarded to unemployed beneficiaries to compensate for the lack of remuneration caused by the involuntary loss of employment. Due to Covid-19, unemployment benefits ending in 2021 are, exceptionally, extended for another six months.

Public pension

In Portugal, old-age pension is paid to beneficiaries who have reached the state pension age. The age for retirement is 66 years and four months for both men and women. The pension amount is determined according to the beneficiary’s social security contribution record and registered earnings.

Other statutory benefits

The following benefits are all covered by Portugal’s social security.

Disability Pension

It is an amount paid monthly, intended to protect beneficiaries of the general Social Security regime in situations of permanent incapacity for work. Disability is considered to be any disabling situation, of non-professional cause, which determines permanent incapacity for work.

Death Funeral Allowance

A one-time benefit, to compensate the applicant for the subsidy for expenses incurred with the funeral of any member of his household or any other person, including unborn children, as long as he resides in the national territory.

Widow’s Pension

Benefit granted monthly to the widower or person who lived in a situation of de facto union with the social pension pensioner.