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What it costs to employ in Portugal?

Thinking of employing someone in Portugal? As with every other country, there are certain costs associated with employing a worker that come on top of the gross salary you are offering. Let us take you through everything you need to consider when it comes to employment costs in Portugal.

🇵🇹 One important thing to understand in Portugal is that there are 14 salaries in a year rather than 12.

What taxes should you consider as an employer in Portugal?

 

  • Social insurance contributions -23.75% (22.3% for non-profits)
  • Labour Accident Insurance - 1.75% of the gross salary
  • Wage Guarantee Fund* - 1% of the gross salary 

*Does not apply to 13th & 14th salaries

 

 

What benefits should you consider as an employer in Portugal?

  • Christmas and holiday subsidies - the annual salary is divided into 14 salaries with one extra payment before Christmas and one before summer vacation
  • Workers compensation insurance - employers must cover employees for accidents that happen at work or on the way to it and cause temporary, permanent or partial disability

 

What other costs should you consider as an employer in Portugal?

  • Training courses - employers must provide 40 hours of training for employees and there may be costs involved
  • Redundancy payments -  individual redundancy or collective dismissal triggers extra compensation of between 12 and 30 days of salary 

 

 

Need help in employing someone in Portugal??

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