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Hire Employees in Portugal
Hire in Portugal compliantly without setting up a local entity. We manage employment contracts, payroll, tax compliance, and work permits — so you can hire your first Portuguese employee in weeks, not months.
Hire Employees in Portugal
Hire in Portugal compliantly without setting up a local entity. We manage employment contracts, payroll, tax compliance, and work permits — so you can hire your first Portuguese employee in weeks, not months.
Capital
Lisbon
Currency
Euro (EUR)
Language
Portuguese
Min. Wage (2026)
€920/month
Working Week
40 hrs
Min. Leave
22 days
Minimum wage: €920/month gross, effective 1 Jan 2026 (Decreto-Lei n.º 139/2025). Sources: Diário da República ·
Segurança Social ·
ACT — Autoridade para as Condições do Trabalho
WHY PORTUGAL
Why International Companies Are Hiring in Portugal
Portugal has become one of the most popular EU markets for international expansion — not just for its talent pool, but for the practical advantages it offers companies hiring their first EU-based team.
Skilled, English-Proficient Workforce
A strong university pipeline and high English proficiency make Portuguese talent well-suited to international, remote-first teams.
Competitive Cost Base
Salary and employer on-costs are generally lower than Western European markets like Germany or the Netherlands, without a significant compromise on skill level.
EU Market Access
An EU member state with full freedom of movement for EU/EEA hires — a natural base for wider European expansion.
Time Zone Alignment
WET (UTC+0) overlaps closely with UK business hours and comfortably with wider European and US East Coast teams.
Mature Tech & BPO Sector
An established base of multinational shared-service centres and tech teams means the market is used to international employers.
Fast, Compliant Onboarding
Via an EOR, hire your first Portuguese employee without entity setup — typically in days, not the months a local entity requires.
“Most companies come to Portugal for the cost and end up staying for the retention. You hire strong, English-speaking people at a rate that works, and because the market is competitive without being frantic, they don’t jump ship every eighteen months the way they might in a bigger hub. The saving looks good on day one. The stability is the part that actually pays off.”
— Gino Peters, CCO of ThisWorks
01 - TALENT MARKET
Portugal: A Growing Talent Hub
Portugal’s job market blends a strong technical talent pipeline with a rapidly maturing startup ecosystem, particularly in and around Lisbon. English proficiency is high among the professional workforce, making Portugal a popular first step into the EU for UK and US companies.
Top cities for recruitment
Lisbon
Tech, startups, shared services and HQ functions. The country's largest talent pool.
Porto
Engineering, manufacturing and a fast-growing tech scene — often more cost-competitive than Lisbon.
Braga
Technology and advanced manufacturing, anchored by a strong university pipeline.
Key industries
Technology & Software
Tourism & Hospitality
BPO / Shared Services
Manufacturing
Renewable Energy
Indicative average gross salaries (annual, EUR, Lisbon)
| Role | Junior | Mid-level | Senior |
|---|---|---|---|
| Software Engineer | €30,000–38,000 | €40,000–55,000 | €55,000–82,000+ |
| Customer Support / BPO | €14,000–18,000 | €18,000–24,000 | €25,000–33,000 |
| Marketing / Sales | €16,000–20,000 | €22,000–28,000 | €32,000–45,000+ |
| HR / Operations | €18,000–24,000 | €25,000–32,000 | €35,000–48,000 |
These figures are indicative guides only, compiled from publicly available salary data — Glassdoor, Levels.fyi and Payscale — and are not based on ThisWorks' own placement data. Actual pay varies by company size, sector, seniority definition and specific skill set. Porto salaries generally run 10–20% below Lisbon for the same role. Treat as a directional benchmark for client conversations, not a quoted figure.
02 - COMPLIANCE
Legal Requirements for Hiring in Portugal
Hiring employees in Portugal requires compliance with Portuguese labour law, from work permits through to contract structure.
Work Permits & Visas
- EU/EEA/Swiss citizens: no work permit required
- Non-EU nationals in specialist or senior roles: typically the D3 (Highly Qualified Activity) Visa, which grants a 2-year residence permit, renewable for 3 more years, without requiring the employer to run a Portuguese/EU labour-market test first
- D3 eligibility requires the role to sit within a "highly qualified" occupation category and the salary to meet a minimum threshold set relative to the national average wage — both figures are reviewed periodically
- UK nationals are treated as non-EU/EEA nationals for immigration purposes since Brexit and follow the same visa routes as other non-EU hires
Source: Law 23/2007, Art. 90-B; Portaria 303/2019 (qualifying occupations).
Employment Contracts Must Include
- Job role and responsibilities
- Salary, including the mandatory 13th month (Christmas) and 14th month (vacation) allowances
- Working hours and probation period
- Vacation entitlement
- Notice periods and termination clauses
Do you need a local entity?
To hire directly in Portugal, a company must register a local entity, open a Portuguese bank account, and register with Segurança Social and Autoridade Tributária — a process that carries real setup time and ongoing compliance overhead. An Employer of Record lets you hire in Portugal without establishing a local entity — ThisWorks becomes the legal employer for tax, payroll and compliance purposes, while you manage the employee day to day. Learn about our EOR service →
03 - CONTRACTS
Contract Types & Probation Periods
Portuguese law recognises two main employment contract types, each with different rules on duration and renewal.
Fixed-Term Contract
- Used for temporary or project-based needs
- Subject to maximum duration and renewal limits under the Código do Trabalho
- Shorter probation periods than permanent contracts
Permanent (Indefinite) Contract
- The standard contract type for ongoing roles
- Stronger termination protections apply after probation
- Longer probation period for senior/technical roles
Probation periods (Art. 112º, Código do Trabalho)
| Contract type | Standard probation |
|---|---|
| Permanent — standard role | 90 days |
| Permanent — technically complex / high-responsibility / senior role | 180 days |
| Fixed-term (6+ months) | Up to 30 days |
| Fixed-term (under 6 months) | Up to 15 days |
Source: Código do Trabalho, Art. 112º.
Notice to end a contract during probation (Art. 114º, Código do Trabalho)
| Probation duration so far | Employer notice required |
|---|---|
| Under 60 days | None |
| 60–120 days | 7 days |
| Over 120 days | 15 days |
Source: Código do Trabalho, Arts. 111º–114º. Either party can end the contract during probation without needing just cause — this notice requirement is the main exception.
04 - COST OF EMPLOYMENT
What Does It Cost to Hire in Portugal?
Employer costs in Portugal go beyond gross salary. Budgeting on base pay alone is the most common mistake we see from companies hiring here for the first time.
| Employer cost item | Estimated rate |
|---|---|
| Social Security (employer contribution) | 23.75% of gross salary, no ceiling |
| Work Accident Insurance | Mandatory; premium varies by role & risk classification |
| Meal Allowance | Not statutory, but standard market practice |
| 13th Month (Christmas Allowance) | 1 month's salary, paid December, prorated in hire year |
| 14th Month (Vacation Allowance) | 1 month's salary, paid before summer leave, prorated in hire year |
| Typical total employer on-cost | ~24–26% above base salary, before optional benefits |
Sources: OECD — Taxing Wages Portugal 2026 · PwC Portugal — 2026 Tax Guide · Segurança Social. The 23.75% Social Security rate is independently confirmed across OECD, PwC and Segurança Social — safe to publish. Work accident insurance premiums and any collective-agreement allowances should still be confirmed per role before quoting a client a firm on-cost figure.
“The mistake I see most often is budgeting on twelve months of salary. In Portugal you effectively pay fourteen, because the Christmas and holiday subsidies are part of the standard package rather than a bonus. Once you add employer social security that applies to the whole salary with no ceiling, the real annual cost sits noticeably above the headline gross. Portugal is not an expensive place to hire, it is just structured differently, and that structure is what trips up first-time employers.”
— Tarun Arora, Payroll Specialist at ThisWorks
05 — MAKING THE DECISION
EOR vs. Setting Up a Local Entity in Portugal
Both routes are compliant ways to hire in Portugal — the right choice depends on how established your plans for the market are.
| EOR (via ThisWorks) | Portuguese Entity | |
|---|---|---|
| Set-up time | ✓A few days | Several weeks to months |
| Upfront cost | ✓Low, predictable monthly fee | High — registration, legal, accounting |
| Ongoing admin | ✓Handled by ThisWorks | Managed by your team or local accountant |
| Social Security / tax registration | ✓Included | Separate registration required |
| Flexibility to scale down | ✓Simple, no structural changes | Requires formal entity wind-down |
| Full operational control | Day-to-day management retained by you | ✓Full legal and operational control |
| Best suited for | Market entry, first hires, testing Portugal | Established, long-term Portuguese operations |
06 - EMPLOYEE RIGHTS
Portuguese Employee Rights & Benefits
Employer costs in Portugal go beyond gross salary. Budgeting on base pay alone is the most common mistake we see from companies hiring here for the first time.
Working Hours & Leave
- 40 hours/week standard, Mon–Fri (Código do Trabalho)
- Minimum 22 working days annual leave once past the first year; 2 days accrued per month in the hire year, up to 20
- 13 mandatory national public holidays observed annually — Carnival Tuesday is common practice but not a statutory holiday
Sick Leave (Social Security-staged)
- Days 1–3: unpaid "waiting period" — neither the employer nor Social Security pays
- Days 4–30: Social Security pays 55% of reference earnings
- Days 31–90: rate rises to 60%
- Days 91–365: rate rises to 70%, then 75% beyond 365 days (payable up to 1,095 days total)
Parental leave — high-level overview
| Type | Overview |
|---|---|
| Initial Parental Leave (shared right of both parents) | 120 days paid at 100% of reference remuneration, or 150 days paid at 80% — the parents choose which option |
| Mother's exclusive leave | 42 days mandatory immediately after birth (within the initial period above), plus up to 30 optional days before birth |
| Paternity Leave | 28 days total, paid at 100% — the first 7 days consecutive and mandatory immediately after birth, the remaining 21 taken within 6 weeks; extendable to 35 days in certain circumstances |
| Shared Parental Leave | An extra 30 days (bringing the total to 180) if each parent takes an exclusive block of 30 consecutive days, or two blocks of 15, after the mother's mandatory 42 days — paid at 83% |
Sources: gov.pt — Parental leave and allowance in Portugal · L&E Global — Employee Benefits Portugal · Segurança Social.
07 — ENDING EMPLOYMENT
Termination & Severance in Portugal
Portuguese termination law is structured and process-driven — getting it wrong is one of the more costly compliance mistakes international employers make.
| Scenario | Notice / Requirement |
|---|---|
| During probation, under 60 days elapsed | No notice required (Art. 114º CT) |
| During probation, 60–120 days elapsed | 7 days' notice from employer |
| During probation, over 120 days elapsed | 15 days' notice from employer |
| Employee resigns, post-probation, up to 2 years' service | 30 days' notice (Art. 400º CT) |
| Employee resigns, post-probation, over 2 years' service | 60 days' notice (Art. 400º CT) — can extend up to 6 months for management, senior or representation roles under a collective agreement or individual contract |
| Employer-initiated termination (collective dismissal / redundancy, without just cause) | Requires valid grounds, a formal process, and statutory severance calculated per completed year of service, subject to statutory caps (Art. 366º CT) |
Sources: Código do Trabalho — Art. 112º, Art. 114º, Art. 366º and Art. 400º · DGERT — Compensação por Despedimento Coletivo
08 — HIRING PROCESS
How to Hire in Portugal
Portuguese termination law is structured and process-driven — getting it wrong is one of the more costly compliance mistakes international employers make.
1
Job Posting
Local boards: Net-Empregos, Sapo Emprego, ITJobs.pt, LinkedIn.
2
Interviews
Mix of remote/in-person interviews and practical assessments.
3
Reference Checks
Common practice — always confirm with previous employers.
4
Onboarding
A structured process supports faster integration and retention.
09 - WHY THISWORKS
Why Choose ThisWorks for EOR in Portugal?
Choosing the right EOR partner is about more than payroll processing — you need a partner who understands Portuguese employment law and gives both you and your employee a reliable experience.
Compliant by Design
Employment contracts, payroll and data handling built around Portuguese labour law and GDPR from the outset — not retrofitted.
Fast Onboarding
Once documentation is provided, employees can typically be onboarded within days — no entity setup or payroll registration wait.
Pan-European Capability
Beyond Portugal, ThisWorks supports compliant hiring across Germany, the Netherlands, UK, Poland, Spain and South Africa — one partner for multi-country growth.
Transparent Pricing
A single, predictable monthly fee per employee — no hidden legal or compliance overhead.
Dedicated HR Support
A named point of contact for your Portugal team, not a ticket queue.
Immigration Support
Support for eligible employees through Portuguese work and residence permit procedures where required.
“Companies usually come to us after trying to piece Portugal together themselves, or after a bad experience with a provider who treated them like a ticket number. What they want is simple: contracts that are right the first time, payroll that runs on time every month, and a person who picks up the phone. Getting the compliance right is the baseline. The reliability is what makes them stay.”
— Juul Seuren, HR Consultant at ThisWorks
10 - HOW WE HELP
ThisWorks Services in Portugal
Whatever stage of Portuguese expansion you’re at, we have a service built for it.
Employer of Record
Hire in Portugal without a local entity — full compliance, payroll and HR handled.
Learn more →Payroll Services
Portugal payroll outsourcing, including 13th/14th month and Social Security handling.
Learn more →Work Permit & Visa Services
Support for non-EU hires requiring a Portuguese work visa.
Learn more →Entity Setup
If and when you're ready to establish your own legal entity in Portugal.
Learn more →11 - FAQS
Frequently Asked Questions
Do I need a work permit to hire employees in Portugal?
In most cases, no. EU, EEA and Swiss citizens have the right to work in Portugal without a work permit. Non-EU nationals typically require a Portuguese work or residence visa.
What are the minimum employment contract requirements in Portugal?
Employment contracts in Portugal should include job description, working hours, compensation (including 13th and 14th month payments), probation period, notice periods, and other core terms, in line with Portuguese labour law.
How many vacation days are Portuguese employees entitled to?
Portuguese law provides for a minimum of 22 working days of paid vacation per year once past the first year of employment; entitlement accrues differently during the hire year.
What are the key tax and social security considerations when employing in Portugal?
Employers in Portugal are responsible for Social Security contributions on top of gross salary, alongside smaller contributions such as the Compensation Fund and work accident insurance.
How does termination of employment work in Portugal? +
Termination in Portugal is governed by Portuguese labour law and generally involves notice periods and, in some cases, statutory severance. Requirements vary based on tenure, contract type and grounds for termination.
Do I need a local entity to hire in Portugal, or can I use an EOR?
No — an Employer of Record lets you hire employees in Portugal without registering a local entity. ThisWorks becomes the legal employer of record for compliance purposes, while you continue to manage the employee’s day-to-day work.
What does an Employer of Record in Portugal do?
An Employer of Record in Portugal handles employment contracts, payroll, tax withholding, Social Security contributions, and statutory benefits administration on your behalf, acting as the legal employer while you retain operational control of the employee
We're ready to support your expansion into Portugal
Manager Backoffice / Payroll at ThisWorks
“We often see companies move fast to hire in Portugal because the talent is strong and English is widely spoken, then hesitate when they realise the employment rules are more structured than at home. That structure is very manageable once it is set up correctly. With the right support from the start, scaling a Portuguese team is straightforward.”
