Currency: Euro (EUR) (Rate)
Public Holidays: 13 National holidays plus regional holidays (see here)
Employer Taxes: Max. of 26% of gross salary
Official Language: Portugese
Payroll frequency: Monthly
13th / 14th Salary: Mandatory 13th (summer holiday) & 14th (Christmas)
Employees are entitled to have 22 days of paid vacation.
Portuguese social security pays a sick leave benefit for employees who are absent from work as a result of illness or injury.
Employees can receive sick pay for up to 1,095 days. Pay is generally 55% to 75% of the employee’s salary.
The monthly minimum wage is 700 EUR per month.
Probation period is typically:
The severance pay is determined according to the seniority and experience of the employee.
All employees who are terminated due to redundancy are entitled to severance pay.
Termination in Portugal is complex and must be based on performance or redundancy reasons.
Termination due to redundancy will have the following notice periods:
Termination notice by the employee is dependent upon the number of years of service.
Usual business hours are from 9am to 6pm.
The statutory maximum working week in Portugal is 40 hours and the statutory maximum working day is 8 hours.
For overtime on working days the employee is paid 25% for the first hour and 37.5% for every subsequent hour.
Rate is 50% in case of holidays
Overtime should not exceed
Female employees are eligible for 30 days of maternity leave at full pay before a child’s birth, and 6 weeks following.
Maternity leave in Portugal can be taken all at once or in two separate leaves of 30 days prior to the birth and 90 days after. If the employee has twins she’s entitled to an additional 30 days.
Alternatively, the employee can choose to take 150 days of leave at 80% of her salary.
Fathers in Portugal are entitled to 10 days of paid paternity leave to be taken within 30 days of the birth of the child. 5 of these days must be taken consecutively.
You are allowed to have non-compete contracts but compensation has to be paid whilst the non-compete is in place. The amount would have to be agreed beforehand and is typically 50% of the total compensation.
It is common for employees to receive a monthly lunch allowance or meal card. Allowance is paid as per the number of working days. The allowance amount is between EUR 4.77 - 7.63 per day.
For 2019 and 2020, Portugal offers a 50% employment tax cut for returning Portuguese emigrants for 5 years after they return (providing they were not tax payers in Portugal for 3 years prior)