Portugal

Last Update by Katie, 06 Jun 2024

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Exchange Rate

23 Jun 2024

 

Cost of Living

Indicative value for a working adult in a city: Lisbon

Publicly available data (Numbeo, etc..), verified by Marco’s in-country staff

Living Requirement Indicative Amount (EUR)
McDonalds Set Meal 8.90
Monthly Train and Bus Tickets 40
3 Bedrooms Rental (City Center) 2,544
3 Bedrooms Rental (Outskirt) 1,630

Current Inflation Rate

5%

Wage

Minimum Wages

  • 820 EUR per month

Median Salary

Estimated based on general positions such as HR, Accounting, Admin roles, in tier one cities.

Job Level Monthly Salary (EUR)
Entry-Level
Fresh Graduate
3,000
Mid-Level
5 Years
4,000
Experienced & Managerial Level
10 Years
5,000
Specialized & Senior-Level
15 Years
6,000+

Annual Salary Growth

2.3%

Statutory Contribution

Country Level

Type Employer Rates Employee Rates Notes
Social Security (NISS) 23.75% 11.00% All staff
Occupational Insurance 1.75% - All staff
Wage Guarantee Fund (WGF) 1.00% - All staff
13 and 14 month salary (holiday/Christmas bonus) 2 month's salary
Released in June and December
- All staff

Other Benefit

Other common employment benefits in Portugal include:

  • Meal vouchers/meal allowance: 10 EUR per day
  • Remote working allowance: Around 30 EUR per month
  • Telephone Allowance: Around 50 EUR per month
  • Flex allowance (benefits of an employee’s choice): Around 200 EUR per month

Income Tax

Residents

  • Tax period: 1st January – 31st December
    Tax filing due date: 30th Jun

Country Level

Taxable Income Rate
Up to 7,703 13.25%
7,703 - 11,623 18%
11,284.01 - 15,992 23%
16,472 - 21,321 26%
21,321- 27,146 32.75%
27,146- 39,791 37%
39,791- 51,997 43.50%
51,997- 81,199 45%
>81,199 48%

Non-residents

  • A flat rate of 20% for individuals who have not lived in Portugal 5 years prior to entering Portugal

Working Hours

Statutory

40 Hours
8 hours a day, 5 days a week

Typical practice

40 hours
Monday-Friday

Overtime

Overtime should not exceed 2 hours daily, maximum 48 per week

  • 150 hours yearly for companies with 50+ staff
    175 hours for companies with up to 49 staff
    200 annually if it’s in a collective agreement
  • Hourly rate + 25% for the first hour
    Hourly rate + 37.5% for any additional hours
    Hourly rate + 50% for any overtime hours on rest days

Employment Contract

Fixed-Term

To cover absences, replace dismissed staff duties, for seasonal activities, or an increase in company activities.
Cannot exceed 2 years, can be renewed twice. and be full or part time.

Probation

90 days standard

Termination

Notice During Probation:: <60 days service: No notice. 60-130 days service: 7 days, >120 days service: 14 days
After Probation:

  • - <1 year service: 15 days
    - 1-5 year's service: 30 days
  • Severance:
    - Minimum 18 days' salary for each year completed, along with a length of service payment for each full year of service.

Public Holiday

13 days

Country Level

Date Name
29 Mar Good Friday
31 Mar Easter
25 Apr Freedom Day
01 May Labor Day
30 May Feast of Corpus Christi
10 Jun Portugal's National Day
15 Aug Assumption of Mary
05 Oct Republic Day
01 Nov All Saints' Day
01 Dec Restoration of Independence
08 Dec Immaculate Conception Day
25 Dec Christmas Day

Leave

Leave Type Entitlement Notes
Annual Leave Minimum 22 working days All staff
Sick Leave Up to 30 working days All staff with + 6 months' service
Maternity Leave 30 calendar days before birth
6 weeks after birth; paid by social security
Eligible expectant mothers
Parental Leave Up to 150 working days Shared between parents
Paternity Leave 20 compulsory working days Expectant fathers
Adoption Leave Up to 150 working days Shared between parents adopting
Bereavement Leave 5 working days
20 working days
All staff with Death of a spouse/parent
Death of a child
Marriage Leave 15 consecutive calendar days Staff getting married

Reference

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