hire in Portugal

Portugal PEO &
Employer of Record

SALARY PAYMENT IN Euro (EUR, €)

CONTRACT LANGUAGES Portuguese / English

PAYROLL TAX 26.50%

PAYROLL CYCLE Monthly

TIME TO HIRE 12 hours
Get Started

Horizons-owned entity with local country experts in Lisbon.

We offer fair, scalable, and transparent pricing on Portugal PEO service. Contact us for a cost breakdown

End service in Portugal with no additional penalties or fees.

Horizons is enrolled in the Portugal Tech Visa Program.

Hire and pay talents
with Horizons in
180+ countries

Get started

Portugal

In this guide

Hire in Portugal

Employment Laws

Compensation & Benefits

FAQs

Simple, compliant hiring with Horizons PEO

Hire in Portugal

Horizons ensures day-to-day guidance to help your business navigate Portuguese labor laws and regulations. Horizons also ensures payroll is processed on time, and that taxes are withheld as required.

As the Portugal Employer of Record, Horizons is responsible for employee income tax withholding, payment of payroll taxes to government tax authorities, and submission of tax returns annually.

Partnering with our Portugal PEO is the quickest and most cost-effective way to enter the Portuguese market.

Facts & Stats

PEO Platform Hire in Portugal, and pay employees through our platform or app.	PEO Cost Our Portugal PEO solution is the most affordable on the market.	Time-to-hire Fast onboarding in Portugal, hire in as little as 12 hours.
Contracts We draft labor contracts compliant with Portuguese labor law.	Local Benefits We administer all mandatory benefits and contributions in Portugal.	180+ Countries It doesn’t stop with Portugal — we are an international PEO

stay compliant with portugal labor laws

Employment Laws

Employment contracts in Portugal

It is always important to provide your employees in Portugal with a formal contract of employment, including all relevant details of employment such as salary and benefits. It should also be written in the Portuguese language and use the Euro currency.

By partnering with our Portugal PEO & Employer of Record, Horizons’ team of local experts can provide assistance for drafting strong employment contracts that are compliant with local regulations.

Fixed-term contract

Probationary period	<6 months contract: 15 days >6 months contract: 30 days
Termination notice period	During probation: <60 days: no notice 60 to 120 days: 7 days notice >120 days: 14 days notice After probation: <1 year employment: min. 15 days 1 to 5 years: min. 30 days 5 to 10 years: min. 60 days >10 years: min. 75 days
Severance	18 days’ salary per year of service + 12 days’ salary per year of service, max. 12 months’ salary Note: Unlawful termination may require 45 days salary per month of service
Special note	Employer must justify to the labor bureau why employee should be hired on a limited contract vs. a permanent contract

Indefinite (permanent)

Probationary period

Jobs with high complexity → max. 180 days (6 months)

Senior / management → max. 240 days (8 months)

Recommended: 90 days (3 months)

Termination notice period

During probation:
<60 days: no notice
60 to 120 days: 7 days notice
>120 days: 14 days notice

After probation:
<1 year employment: min. 15 days
1 to 5 years: min. 30 days
5 to 10 years: min. 60 days
>10 years: min. 75 days

Severance

12 days salary per year of service, max. 12 months of salary

Note: Unlawful termination may require 45 days salary per month of service

Working hours in Portugal

Normal working hours in Portugal are between the hours of 9am and 7pm, with two hours usually taken for lunch. Working hours are generally limited to 40 hours per week and eight hours per day. Overtime rates should be paid for any time beyond this.

Hire compliantly in Portugal without a local entity.

Quick, compliant hiring in 12 hours—no subsidiary required.

Public holidays in Portugal

Employees in Portugal are entitled to nine public holidays, which are recognized nationally:

There are also various regionally recognized holidays, so it is important that you understand the local customs wherever you are operating. The following is an expanded list of the most common holidays celebrated throughout the country:

Holiday Schedule in Portugal [2023]

Portugal has a range of national public holidays that are celebrated annually. In 2023 these holidays are:

Date	Holiday name
1 Jan, 2023	New Year’s Day
7 Apr, 2023	Good Friday
9 Apr, 2023	Easter Sunday
25 Apr, 2023	Liberty Day
1 May, 2023	Labor Day / May Day
8 Jun, 2023	Corpus Christi
10 Jun, 2023	Portugal Day
15 Aug, 2023	Assumption of Mary
5 Oct, 2023	Republic Day
1 Nov, 2023	All Saints’ Day
1 Dec, 2023	Restoration of Independence
8 Dec, 2023	Feast of the Immaculate Conception
25 Dec, 2023	Christmas Day

Portugal vacation leave

Employees in Portugal are entitled to at least 22 days of paid vacation leave. For the first year of employment, there is a lower allowance of 20 days. Up to five unused days can be carried over until April of the next year. Employers cannot offer pay to forego vacation days, so it is important that you always offer all the days to your employees.

Portugal sick leave

Employees in Portugal are entitled to sick leave benefits when absent from work through sickness. They are covered for a maximum of 1,095 days (approximately three years), at a rate of between 55% and 75% of normal pay. These benefits are paid by the government, not employers.

Parental leave in Portugal

Mothers in Portugal can take 120 days of leave, and must take a minimum of 30 days before their child’s birth, and six weeks after birth. They are entitled to normal pay during this time. If they wish, they can also choose to take 150 days of maternity leave, but at 80% of normal pay.

Fathers can take 10 days of paid leave, which must be taken within 30 days of their child’s birth, and a minimum of five must be taken together.

Terminations and severance in Portugal

Employees in Portugal who are not in a probation period are entitled to notice of termination. The length of notice varies based on length of time with their employer:

Under one year of employment = 15 days of notice
Between one and five years = 30 days of notice
Between five and ten years = 60 days of notice
Over ten years = 75 days of notice

In some cases, employees may be entitled to severance upon termination. The usual rate is roughly 20 days of pay for every year of employment.

Navigating employee terminations and handling severance packages can be complicated for companies expanding overseas for the first time. Horizons’ Portugal PEO can mitigate risk for foreign companies and provide guidance through this process.

Taxation in Portugal

In Portugal, employees and employers are required to contribute to social benefit funds. For employees, the contributions equal roughly 10% to 15% of salary, and for employers, the contributions are roughly 25%.

The progressive income tax rates are between 14.5% and 48% of salary, depending on income. The corporate tax rate in Portugal is 21%.

Health coverage in Portugal

Healthcare in Portugal is nationalized, so there is no need for employers to offer private health insurance. However, some employers may choose to offer insurance as part of their benefits packages.

hassle-free Portugal compensation & benefits

Compensation & Benefits

Compensation laws in Portugal

The minimum wage in Portugal is €740.83 per month as of mid-2020. Most employees are also entitled to two annual bonuses, usually paid in June and December, that equal one month’s salary.

Minimum Wage Country Comparison Chart	(Per month in USD)
Switzerland (Geneva)	$4,000
Italy	$2,255
Australia	$1996
Algeria	$156
Uzbekistan	$22

Benefit management in Portugal

Setting up your Portuguese benefits system can be a confusing process if you are not familiar with the complex labor laws, language, and cultural differences, so it is common to encounter delays.

Horizons can help you avoid this complex part of your Portuguese expansion, saving you time and money and simplifying the entire process. Our team will offer advice and outsourcing of your benefit system setup and management, freeing you focus on the rest of your expansion.

Work Visa and Tech Visa Support in Portugal

Horizons provides full support for companies in Portugal wishing to facilitate employee hire through work visas or Tech Visas. As a certified company for Tech Visas, Horizons can enable companies to bring foreign tech talent into Portugal through a fast-tracked and cost-efficient process.

Hire in Portugal in 12h
without your own local entity.

With Horizons, you get quick service, transparent pricing, and expert support.

FAQs

What is the difference between a Portugal PEO and a Portugal EOR?

A Portugal PEO and a Portugal EOR are two types of companies which specialize in providing human resources services to businesses in Portugal.

The main difference between a Portugal PEO and a Portugal EOR is in the scope of their services.

Portugal PEOs provide a full range of HR services, including payroll, benefits administration, and employee recruiting—all under one roof as a co-employer. Engaging a Portugal PEO is essentially outsourcing your HR duties in Portugal.

Portugal EORs actually take over as the legal employer of your employees based abroad. Portugal EORs become responsible for labor compliance for your employees in Portugal.

At Horizons, we offer both PEO and EOR services in Portugal. Get in touch now and let us know what service you are seeking.

Can a PEO in Portugal hire both local and foreign nationals to work in Portugal ?

A PEO in Portugal can feasibly hire both local and foreign nationals to work in Portugal.

However, the ability of Horizons to sponsor your foreign national employee in Portugal may be limited due to visa quotas practiced in many countries.

Contact us with your requirements and our Global Mobility team with review the case and get back to you within 2 business days.

How long does Horizons' Portugal PEO service take to hire an employee?

In most cases, Horizons’ Portugal PEO can hire & onboard your employee within 12 hours. The actual start date of the employee will depend on their notice period obligation to their previous employer as well as any relevant hiring rules in Portugal.

Is it possible to get a work visa in Portugal ?

It is possible to get a work visa in Portugal. Horizons’ Global Mobility team is a dedicated team of work visa experts. They assess the details of each case to determine feasibility and costs before Horizons applies for the work visa on behalf of your employee. If the Global Mobility team determines that your case is feasible, the process is smooth and transparent. Visa spots in Portugal are limited, however—get started today to secure your employees’ visa spot.

hire in Portugal

Portugal PEO & Employer of Record

Simple, compliant hiring with Horizons PEO

Hire in Portugal

Facts & Stats

stay compliant with portugal labor laws

Employment Laws

Employment contracts in Portugal

Fixed-term contract

Indefinite (permanent)

Working hours in Portugal

Hire compliantly in Portugal without a local entity.

Public holidays in Portugal

Portugal vacation leave

Portugal sick leave

Parental leave in Portugal

Terminations and severance in Portugal

Taxation in Portugal

Health coverage in Portugal

hassle-free Portugal compensation & benefits

Compensation & Benefits

Compensation laws in Portugal

Benefit management in Portugal

Work Visa and Tech Visa Support in Portugal

Hire in Portugal in 12h without your own local entity.

FAQs

Hire Anywhere. Today.

Portugal PEO &
Employer of Record

Hire in Portugal in 12h
without your own local entity.