Portugal Payroll Guide

Q: How does payroll work in Portugal?

In Portugal, it is common for employers to pay 13th and 14th month payments, due in June and December respectively. This is not an additional expense to the employer as the annual salary is divided into 14 equal segments. One-fourteenth is paid each month, with the exception of June and December when the additional portion is payable.

Q: What are the general employment rules?

Maternity Leave in Portugal is paid for by the Portuguese Social Security System. Mothers are entitled to 100% pay for 120 consecutive days – with a maximum of 30 days taken prior to the due date and a minimum of 42 days following the birth. This can be extended to 150 days if both parents take 30 days simultaneously.

Q: What about dismissing an employee?

A strict process must be followed in order to terminate an employee’s contract, including written communication to the employee and the Ministry of Labour. However, there are numerous reasons for dismissal and routes that an employer can take, and we recommend speaking with a member of our Employment Law team before proceeding.

Hire employees in Portugal

Currency

Euro (EUR)

Population

10,276,617

Capital

Lisbon

Official language(s)

Portuguese

Date format

dd/mm/yyyy

Fiscal year

1 January - 31 December

Why use PeoplePay?

Guaranteed Compliance

Robust, compliant payroll and hiring supported by a dedicated Account Manager.

Local Expertise

Avoid international payroll and hiring pitfalls including language barriers, regulations and employment laws.

Lower Costs

Reduced administration, no need for an in-country team, and consolidated, outsourced payroll.

Portugal Payroll

Get peace of mind with a streamlined, fully-managed payroll solution for 1+ employees.

Portugal HR

Helping you hire compliantly, steering you through the local HR laws and regulations.

Portugal Payments

Consolidated, one-wire transfers to cover your entire global workforce – at competitive rates.

Portugal Payroll & HR Solutions

PeoplePay Global are here to assist with all your Payroll and HR requirements in Portugal

In-Country Employment Contracts

Creation of locally-compliant Portuguese employment agreements, ensuring you and your employees are protected in-country. Our experts in Portugal will create your bespoke agreement.

Payroll Processing

With global knowledge and local proficiency, we provide a fully-managed payroll solution that handles all the complex tasks, leaving you to focus on your business.

Tax and Labor Law

Portugal’s complex legislation can be daunting. Our in-country specialists are an extended member of your team, steering you safely through tax and labor law.

Regulatory Compliance

Our in-country professionals provide a wealth of experience and expertise in Payroll & HR compliance, ensuring your venture complies with ever-changing legislation.

Start-Up Implementation

We’ll ensure you’re operational promptly in accordance with local law, advising on the best route for your business, whether it’s via a legal entity or foreign registration.

Declarations and Audits

Our local specialists will manage and submit annual declarations on your behalf, guaranteeing accurate and prompt reporting to the authorities and also providing support for audits.

To discuss your individual needs get in touch today

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Frequently Asked Questions