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.
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.
Guidance & payroll management
Receive process support by an experienced team of experts & pay your talent on time and in their local currency.
Net salary calculator
Calculate net salary in Spain post deductions and compare it with the salary in other countries instantly.
Equipment management
Send laptops and other devices to your remote employees in Portugal through our platform with just a few clicks.
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
UTC+0
22 days
€760
EUR
14 days
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.
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.
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.
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.
Lisbon
10.3 M
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
- Employers must reimburse all expenses incurred by employees due to working from home.
- Employers must also respect the employee’s privacy by not contacting them outside of working hours or using any image, sound, writing, or other means of control to monitor the employee’s work.
- Employers also must respect the employee’s privacy by not contacting them outside of working hours or using any image, sound, writing, or other means of control to monitor the employee’s work.
- The employment contracts in Portugal are quite unique in that there are two types of fixed-term contracts – one with a specified end date and the other with an unspecified end date.
Labour conditions
is the maximum working time per week
is the maximum no. of hours workers may work
is the maximum increase in the normal daily working period
per year overtime is allowed for medium or large enterprises
per year overtime is allowed for small enterprises
Overtime can only be provided when the company has to deal with an eventual and transitory increase in work and there is no justification for the admission of a worker. Overtime may also be provided in case of force majeure or when it is essential to prevent or repair serious damage to the company or its viability.
Overtime work is subject to the following limits, per worker:
- On a normal working day, two hours;
- On a mandatory weekly rest day, or a public holiday, a number of hours equal to the normal daily work period;
- In the case of a micro-enterprise or small enterprise : 175 hours per year;
- In the case of medium or large companies : 150 hours per year.
Depending on the type of contract, the number of days vary. For a fixed-term contract, the probation period can be 15 days for a contract lasting less than six months or 30 days for a contract lasting six months or more. For a permanent contract, the probation period can last between 90 days to 240 days depending on the nature of the role.
The probation period may also be shortened by collective labor regulations or by a written agreement between the parties. It may even be excluded by written agreement between the parties.
Termination notice periods vary depending on the contract type, probation period length, contract length, and type of dismissal.
During Probation
Either party can terminate the contract during probation with the following notice periods:
|
Probation Period |
Employer Minimum Notice |
Employee Minimum Notice |
|
Up to 60 days |
0 days |
0 days |
|
More than 60 days and up to 120 days |
7 days |
– |
|
More than 120 days |
30 days |
– |
After Probation
Termination by employer
The employer can terminate the contract with just cause (i.e. job elimination, unsuitability) with the following statutory minimum notices:
|
Employees’ Seniority |
Employer Minimum Notice |
|
Less than 1 year |
15 days |
|
At least 1 year and fewer than 5 years |
30 days |
|
At least 5 years and fewer than 10 years |
60 days |
|
At least 10 years |
75 days |
Termination by employee
The employee can terminate the contract immediately with just cause, or with the following statutory minimum notices without just cause:
|
Contract Types |
Contract Length |
Employee Minimum Notice |
|
Fixed-term |
Less than 6 months |
15 days |
|
At least 6 months |
30 days |
|
|
Permanent |
Up to 2 years |
30 days |
|
More than 2 years |
60 days |
Leave / time off
Every calendar year employees are entitled to 22 days of paid vacation. The period begins and ends on January 1, and vacations should be taken within this time slot, but they may be taken until April 30.
Employees can receive sick leave benefits from the fourth day of sickness from Social Security for up to 1,095 days, and for unlimited time in the case of tuberculosis. The employer usually pays for the first three days of sick leave. Daily sick pay is between 55% to 75% of employees’ reference income depending on the length and nature of their sickness.
All the parental leaves mentioned below are covered by Social Security.
Initial Parental Leave
Eligible mothers and fathers are entitled to a total of 120 or 150 days of paid initial parental leave, at 100% or 80% of the salary, respectively. This leave is increased in certain conditions.
Maternity Leave
In the case of initial parental leave exclusively for the mother, up to 30 days’ leave can be taken prior to birth, and 42 days leave must be taken following the birth.
Paternity Leave
It is mandatory for the father to take a parental leave of 28 days, consecutive or interpolated periods of at least seven days, in the 42 days following the birth of the child, seven of which are taken consecutively immediately after this.
After taking the leave provided for in the previous number, the father is still entitled to seven days of leave, consecutive or interspersed, as long as they are taken simultaneously with the mother taking the initial parental leave.
Adoption Leave
Prospective adopters adopting a child under age 15 are entitled to adoption leave of up to 120 or 150 consecutive days, at 100% or 80% of the salary, respectively. This leave is increased in certain conditions.
Type of leave | Description |
Prenatal leave | Pregnant employees are entitled to leave from work for prenatal consultations, for the time and number of times necessary. |
Leave in a situation of clinical risk during Pregnancy | A pregnant employee who is in a situation of clinical risk for herself or for her unborn child, and whose employer does not provide her with compatible work with her status and professional category, is entitled to a paid leave as deemed necessary. |
Leave for termination of pregnancy | In case of termination of pregnancy, the worker is entitled to leave lasting between 14 and 30 days. |
Leave to care for a child with a disability, chronic illness or cancer | Parents are entitled to leave for a period of up to six months, extendable up to four years, for the care of a child with a disability, chronic illness, or oncological disease. |
Leave for assisting grandchildren | An employee may be absent for up to 30 consecutive days, following the birth of a grandchild who lives with him/her in a shared room and board and who is the child of an adolescent under the age of 16 years. |
Bereavement leave | An employee may be absent for up to 20 consecutive days of paid leave following the death of their child, stepchild or spouse. |
Marriage leave | Employees are entitled to 15 consecutive days of unpaid leave for marriage. |
Leave for Sick Child
An employee shall be entitled to unpaid leave from work to provide unavoidable and essential assistance, to a child under the age of 12 or, regardless of age, to a child with a disability or chronic illness, up to 30 days a year or throughout the period of eventual hospitalization.
Child Care Leave
After the extended parental leave is exhausted, parents are entitled to consecutive or in parts unpaid childcare leave, up to a limit of two years.
Training Leave
The public employee is entitled to leave without pay for more than 60 days for training purposes.
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 24.4%, while employees contribute 11%, broken down as follows:
| Categories | Employer Contribution | Employee Contribution |
|---|---|---|
| Social Security | 23.75% | 11% |
| Labor Accident Insurance | 0.619% | - |
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.