- Country Guide
- Portugal
Portugal
Last Update by , 05 Jul 2024
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Exchange Rate
10 Oct 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, for seasonal activities, or increases in company activities
Contract Format
Can be verbal or in writing, bilingual Portuguese and English contracts are permitted.
Contract that must be in writing: contracts with foreign workers outside the EU, temporary, remote working and part-time contracts
Payroll Currency
EUR
Probation
Contracts under 6 months: 15 days
Contracts Over 6 months: 30 days
Contract Period
Cannot exceed 2 years, can be renewed twice. and can be full or part time
Termination
-
Notice during probation:
- Under 60 days service: No notice
- 60-130 days' service: 7 days
- Over120 days' service: 14 days -
Voluntary resignation:
- Under 6 months contract: 15 days' notice
- Over 6 months contract: 30 days' notice -
Involuntary termination
- Up to 6 months service: 15 days notice
- Over 6 months service: 30 days notice
- 8 days notice given before contracts natural expiry date -
Severance:
- Due to objective dismissal, redundancy or unsuitability
- 24 days pay for each completed year of service
Public Holiday
13 days
Country Level
| Date | Name |
|---|---|
| 01 Jan | New Year's Day |
| 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
- https://www.numbeo.com/cost-of-living/in/Lisbon
- https://eportugal.gov.pt/en-GB/noticias/novas-tabelas-de-retencao-na-fonte-para-o-irs-de-2024-em-vigor
- https://gouvernement.lu/dam-assets/documents/actualites/2024/01/10-adaption-parametres-sociaux/paramtres-sociaux-janvier-2024.pdf
- https://www.seg-social.pt/calculo-da-condicao-de-recursos-apoio-extraordinario-ao-rendimento-dos-trabalhadores
- https://eportugal.gov.pt/en/cidadaos-europeus-viajar-viver-e-fazer-negocios-em-portugal/trabalho-e-reforma-em-portugal/trabalhar-em-portugal
- https://www.seg-social.pt/maternidade-e-paternidade
- https://www.seg-social.pt/subsidio-de-doenca
- https://files.dre.pt/diplomastraduzidos/7_2009_CodigoTrabalho_EN_publ.pdf?lang=EN
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Contact UsCountry Guide - Portugal
Last updated: 05 Jul 2024
Exchange Rate
Currency (EUR)
- 1 CNY = 0.185 EUR
- 1 USD = 1.32 EUR
Other currencies can be retrieved via the country guide link above.
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Labor Cost Calculator
To know the total employer cost for hiring a staff with certain salary, please go to our main site: https://marcopayroll.com
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
Permanent
Probation
Permanent staff: 90 days
Technical roles: 240 days
Management/ directors: 240 days
Termination
-
Notice during Probation:
- Under 60 days' service: no notice
- 60-130 days' service: 7 days
- Over 120 days' service: 14 days -
Voluntary resignation:
- Contracts up to 2 years: 30 days' notice
- Contracts over 2 years: 62 days notice -
Involuntary termination
- Under 1 year service: 15 days
- 1-5 years' service: 30 days
- 5-10 years' service: 60 days
- Over 10 years' service: 75 days -
Severance:
- Due to objective dismissal, redundancy or unsuitability
-12-18 days’ salary per year of service, capped at 240 times the national minimum monthly wage
Fixed-Term
To cover absences, replace dismissed staff, for seasonal activities, or increases in company activities
Probation
Contracts under 6 months: 15 days
Contracts Over 6 months: 30 days
Termination
-
Notice during probation:
- Under 60 days service: No notice
- 60-130 days' service: 7 days
- Over120 days' service: 14 days -
Voluntary resignation:
- Under 6 months contract: 15 days' notice
- Over 6 months contract: 30 days' notice -
Involuntary termination
- Up to 6 months service: 15 days notice
- Over 6 months service: 30 days notice
- 8 days notice given before contracts natural expiry date -
Severance:
- Due to objective dismissal, redundancy or unsuitability
- 24 days pay for each completed year of service
Uncertain term
Not restricted to a company's temporary need for replacing sick staff or staff on maternity
Probation
Up to 90 days
Termination
-
Notice during probation:
- Under 60 days service: No notice
- 60-130 days' service: 7 days
- Over120 days' service: 14 days -
Voluntary resignation:
- Under 6 months contract: 15 days' notice
- Over 6 months contract: 30 days' notice -
Involuntary termination
- Up to 6 months service: 7 days notice
- 6 months - 2 years' service: 30 days notice
- Over 2 years: 60 days notice
- 8 days notice given before contracts natural expiry date -
Severance:
- Due to objective dismissal, redundancy or unsuitability
- 24 days pay for each completed year of service
Public Holiday
13 days
2024
| Date | Name |
|---|---|
2025
| Date | Name |
|---|---|
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
- https://www.numbeo.com/cost-of-living/in/Lisbon
- https://eportugal.gov.pt/en-GB/noticias/novas-tabelas-de-retencao-na-fonte-para-o-irs-de-2024-em-vigor
- https://gouvernement.lu/dam-assets/documents/actualites/2024/01/10-adaption-parametres-sociaux/paramtres-sociaux-janvier-2024.pdf
- https://www.seg-social.pt/calculo-da-condicao-de-recursos-apoio-extraordinario-ao-rendimento-dos-trabalhadores
- https://eportugal.gov.pt/en/cidadaos-europeus-viajar-viver-e-fazer-negocios-em-portugal/trabalho-e-reforma-em-portugal/trabalhar-em-portugal
- https://www.seg-social.pt/maternidade-e-paternidade
- https://www.seg-social.pt/subsidio-de-doenca
- https://files.dre.pt/diplomastraduzidos/7_2009_CodigoTrabalho_EN_publ.pdf?lang=EN
Contact Info
-
Singapore (Headquarters)
8 Marina Boulevard, MBFC Tower 1, #11-01, Singapore, 018981
+65 6653 4334 -
China (Headquarters)
79 Jianguo Road, China Central Place Tower 2, #09-52, Beijing, 100025
+86 10 6580 0555 -
China (Service Center)
23 Dagong Street, Eton Place Tower 2, Unit 1808, Dalian, 116001
-
United States
445 S Figueroa St, 31st Floor, Los Angeles, California, 90071
-
United Kingdom
71 - 75 Shelton Street, London, England GB
-
Netherlands
Vijzelstraat 68, 1017 HL, Amsterdam
-
Australia
Level 22, Salesforce Tower, 180 George Street, Sydney, NSW 2000