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. The country’s GDP contracted by 3.29% in 2020.

 

*Please note that the official currency is the currency of remuneration when employed through WorkMotion in Portugal.

Hauptstadt :
Lisbon
Währung :
Euro (€, EUR)
Gesprochene Sprachen :
Portuguese
Einwohnerzahl :
10.31 million (2020 est.)
Mindestlohn :
€705 (monthly)
Lebenshaltungskostenindex :
$$$ (64 of 139 countries)
Payroll Frequency :
Monthly
Mehrwertsteuernormalsatz :
23%
reales BIP-Wachstum :
-3.29% (2020 est.)

Statutory Holidays

The national holidays mentioned below are valid for the year 2022.

Portugal has 13 mandatory holidays. In addition to the mandatory holidays, the Tuesday of Carnival and the municipal holiday of the locality can be observed as a holiday, declared by means of collective labor regulation or employment contract.

Date
Holiday Name
Extra Information
January 1
New Year’s Day
April 15
Good Friday
Movable - Friday before Easter.
April 17
Easter
Movable - First Sunday after the first full moon following the northern spring equinox
April 25
Freedom Day
May 1
Labor Day
June 10
Portugal Day
June 16
Corpus Christi
Movable - Thursday following Trinity Sunday, which is 60 days after Easter
August 15
Assumption of Mary
October 5
Republic Implantation Day
November 1
All Saint’s 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 is only 5 business days assuming no special requests or changes to our standard employment contract.

Our team ensures compliance with local employment legislation, as well as a quick and efficient onboarding process. The minimum onboarding time begins from the moment that WorkMotion has received all required information from both the client and the employee. 

For more complex onboardings, this time may increase depending on the selected bouquet of contract inclusions and the right-to-work status of the employee.

What You Need To Know


  • Employers must reimburse all expenses incurred by employees due to working from home. They 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.
  • In Portugal, like some other European countries, salaries are paid in 14 installments as opposed to the typical 12.

Labor Conditions


Working Hours

The normal working period cannot exceed eight hours a day and 40 hours a week.

Employers and employees may by agreement provide for an increase in the normal daily working period for up to two hours and the weekly working period for up to 50 hours, not counting the overtime work provided for reasons of force majeure. In a week whose working duration is less than 40 hours, the reduction may be up to two hours a day or, if agreed, in days or half days, without prejudice to the right to meal allowance.

Overtime

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.
Probation Period

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 the written agreement of the parties. It may even be excluded by written agreement between the parties.

Termination Notice Period

Termination notice periods vary depending on the contract types, probation period length, contract length, and types of dismissal. In general, employees can terminate the contract without cause with the following notice period:

 

Employment LengthTermination Notice Period
Up to 2 yearsAt least 30 days
More than 2 yearsAt least 60 days

For fixed-term contracts, termination notice period is required when the probation period exceeds 60 days. Seven days’ notice is required for probation period lasting more than 60 days and up to 120 days, while 15 days’ notice is required for probation period lasting more than 120 days. Notice periods between 15 and 75 days also apply in cases of indivudal and collective dismissal.

Leave / Time Off

Annual Leave

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 up until April 30.

Sick Leave

Employees can receive sick leave benefits through social security for up to 1,095 days, and for unlimited time in the case of tuberculosis. The daily sick pay is between 55% to 75% of employees‘ reference income depending on the length and nature of their sickness.

Parental Leave

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 paid initial parental leave, at 100% or 80% of the salary, respectively. This leave is increased in certain conditions.

 

Maternity Leave

Within the initial parental leave, mothers must take a compulsory maternity leave of six weeks following childbirth, with an option of requesting a voluntary before childbirth of up to 30 days.

 

Paternity Leave

Within the initial parental leave, fathers must take compulsory paternity leave of 20 days after childbirth:

  • The first five days must be taken immediately after childbirth;
  • The other 15 days must be taken within six weeks following childbirth, consecutive or interpolated.

The father is also entitled to five optional business days, consecutive or interpolated, if taken simultaneously with the mother’s initial parental leave.

 

Extended Parental Leave

After the initial parental leave, parents may take an extended parental leave, for a period of three months each. Those extending the leave receive an extended parental allowance worth 25% of reference pay.

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.

Other Types of Paid Leave

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.
Marriage Leave
Employees are entitled to 15 consecutive days of unpaid leave for marriage.

Unpaid Leave

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.

Bereavement Leave

Employees shall be entitled to 20 consecutive days of unpaid leave following the death of their child. In the event of the death of a spouse or parent, the duration of paid leave shall be five consecutive days. 

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 the employees, and cover sickness, occupational diseases, maternity, paternity, adoption, unemployment, disability, pension, and death.

Employers‘ contributions in Portugal add up to about 26.5%:

CategoriesEmployer Contributions
Social Security23.75%
Labor Accident Insurance1.75% (varies)
Wage Guarantee Fund1%

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%.

Other Insurances

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 five 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.

Disclaimer

The information contained in this Country Guide is provided for informational purposes only and should not be construed as legal advice on any subject matter. The contents of this Country Guide contain general information and may not reflect current legal developments or address your situation. You should not act or refrain from acting on the basis of any content included in this Country Guide without seeking the advice or representation of a licensed attorney. WorkMotion Software GmbH disclaims all liability for actions you take or fail to take based on any content included in this Country Guide.

Information provided in this Country Guide is provided “as is” without warranty of any kind, either express or implied, including without limitation warranties of merchantability, fitness for a particular purpose, or non-infringement. WorkMotion Software GmbH periodically adds, changes, improves, updates, or removes information without notice, and assumes no liability or responsibility for any errors or omissions in the contents of this Country Guide. This Country Guide may contain links to other websites. WorkMotion Software GmbH disclaims all liability for the privacy practices or the content of such websites.

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