Partner with Lerio to keep employment in Portugal legally sound — contracts, payroll and statutory benefits handled against the live rule set.
Every figure below is modelled, not memorised — and traceable to its source via the calculator on the right.
Employee taxes
withheld from grossEmployee Taxes
withheld from grossSolidarity Tax
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on top of grossEmployer Tax
on top of grossYou can hire in Portugal through Lerio’s Employer of Record — no local entity required.
Portugal is an attractive destination for international business, offering a skilled workforce, competitive labor costs, and a strategic location in the European Union. However, hiring employees in Portugal requires compliance with strict labor laws, tax obligations, and social security contributions, which can be complex for foreign companies.
An Employer of Record (EOR) in Portugal allows companies to hire employees quickly and legally without establishing a local legal entity. The EOR becomes the official employer, handling payroll, taxes, benefits, and compliance, while the client company manages the employee’s day-to-day work and performance.
Key Benefits of Using an EOR in Portugal
Rapid Market Entry – Hire Portuguese employees in weeks instead of months.
Full Compliance – Ensure adherence to Portuguese labor laws, tax regulations, and social security obligations.
Cost Efficiency – Avoid the administrative and financial burden of setting up a local entity.
Access to Talent – Tap into Portugal’s educated and multilingual workforce.
Flexibility & Scalability – Ideal for testing the market, short-term projects, or scaling teams quickly.
How EOR Works in Portugal
The EOR becomes the legal employer and manages:
Drafting employment contracts compliant with the Portuguese Labor Code.
Payroll processing, including income tax withholding and social security contributions.
Administration of statutory benefits, including paid leave, health insurance, and pensions.
Compliance with working hours, overtime, and termination procedures.
Onboarding, HR support, and assistance with employee relations.
The client company retains control over the employee’s responsibilities, projects, and daily management.
Compliance and Employment Regulations in Portugal
Working Hours: Standard full-time workweek is 40 hours; overtime is regulated.
Minimum Wage: As of 2025, the national minimum wage is €870 per month, or approximately €5.15 per hour based on a standard workweek.
Paid Leave: Employees are entitled to 22 working days of paid vacation annually, plus public holidays.
Sick Leave: Paid by social security and employer contributions according to the length of employment.
Probation Period: Typically 90 days, depending on the role and contract.
Termination Rules: Notice periods and severance pay depend on length of service and reason for termination.
Employer Contributions: Employers pay social security contributions of approximately 23.75% on top of gross salary.
Why Choose an EOR in Portugal?
Simplify Compliance – Navigate Portuguese labor and tax regulations with ease.
Faster Hiring – Onboard employees quickly without setting up a local subsidiary.
Risk Reduction – The EOR assumes responsibility for payroll, taxes, and legal compliance.
Cost and Time Efficiency – Save on entity setup costs and administrative burden.
Local Expertise – Access professionals with deep knowledge of Portuguese HR, payroll, and employment law.
An Employer of Record in Portugal allows companies to expand into the Portuguese market efficiently, hire local talent compliantly, and scale operations with minimal risk and overhead.
What Lerio handles
Typical timeline
via EORStatutory benefits in Portugal, plus the supplemental coverage teams usually add.
Mandatory
Commonly added
optionalStatutory / Mandatory Benefits in Portugal
Portuguese labor law (Código do Trabalho) and social security regulations provide strong protections:
Paid Annual Leave – Minimum 22 working days per year.
Public Holidays – 13 national holidays (may vary with regional holidays).
Working Hours – Standard 40 hours/week; overtime must be compensated with higher pay or time off.
Paid Sick Leave –
Day 1–3: unpaid (or partial coverage by social security in some cases).
Day 4 onward: paid by social security, percentage increases with length of illness (up to 100% for long-term).
Maternity Leave – 120–150 days paid, at 100% of salary if taken fully; can be extended with shared parental leave.
Paternity Leave – 20 working days paid (for children born after 2019), partially mandatory.
Parental Leave – Parents can extend leave beyond maternity/paternity up to 6 months (paid at 80–100% depending on arrangements).
Parental Rights / Childcare Leave – Additional unpaid leave until child reaches 3 years.
Severance Pay – Required for dismissals:
Typically 1–3 months’ salary depending on tenure and cause.
Social Security Contributions – Employer contributes around 23–34% of gross salary, covering pensions, healthcare, unemployment, and family benefits.
Occupational Health & Safety – Employers must ensure a safe work environment and arrange required medical checks.
Common Employer-Provided Benefits in Portugal
Many employers offer additional benefits to attract talent, especially in tech, finance, and multinational companies:
Private Health Insurance – Top-up to public healthcare, often covering family members.
Meal Vouchers (Cartão Refeição) – Common, usually €5–€8 per working day.
Performance Bonuses – Annual or productivity-based incentives.
Flexible / Remote Work – Hybrid and fully remote arrangements increasingly standard.
Professional Development – Training budgets, certifications, language courses.
Wellness Benefits – Gym memberships, wellness stipends, mental health support.
Extra Paid Leave – For birthdays, volunteering, seniority, or special company days.
Commuter / Transport Allowances – Public transport or fuel subsidies.
Supplementary Pension Plans – Voluntary contributions to occupational pensions.
Life & Disability Insurance – Group coverage, often included for managerial positions.
Stock Options / Equity Plans – Offered by startups and multinational corporations.
Employee Discounts – Corporate partnerships with services, retailers, gyms, or cultural institutions.
Relocation Assistance – For foreign hires, including housing, flights, and visa support.