Current Region & Language
Current Region & Language
Current Region & Language
Currency
Euro
Employer Taxes
About 23.75% of gross salaries for social security.
Payroll Frequency
Monthly
Language
Portuguese
Date Format
DD/MM/YYYY
Portugal By The Numbers
10.3 million
Population
EUR 280 billion
GDP
9
National Holidays
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Weekly Working Hours
National Holidays
Leave
Employees are typically entitled to various types of leave, including holiday, sick, maternity, paternity, study leave, non-criminal abortion leave, marriage leave, and leave for the death of a spouse, ascendants, descendants, or dependents. In addition, employees may also be entitled to adoption leave and children care leave. The specific leave entitlements can vary depending on the applicable collective labor agreement (CLA), which may provide additional leave types or specific conditions for these leaves.
Employment Contracts
Employers are required to provide written employment contracts and policies that outline the terms and conditions of employment, including job responsibilities, compensation, benefits, and workplace expectations, in compliance with applicable labor laws.
Types of Employment
Employees, temporary agency workers, and independent contractors are all distinct types of employment.
Employment Costs
There are no specific requirements regarding employment costs.
IC Class Factors
A status assessment is multi-faceted and dependent upon a number factors and a totality approach is required in order to determine the outcome. Prevalent considerations include (but are not limited to) an analysis of the degree of control, subordination, exclusivity, economic risk of individual, integration into the organisation, subcontracting of work and the right to substitution.
Labor Leasing
The placement of contingent or temporary workers at third party sites requires a labor leasing license.
Minimum Wage Requirements
The government sets the general minimum wage requirements normally once per year. For 2025, the national minimum monthly wage is €870.00 gross/month (except for Azores and Madeira, set at €913.00 and €915.00 respectively), taking into account 14 salaries per year. The applicable minimum wages shall awlays observe the Collective Bargaining Agreements.
Medical Benefits
Employers have the obligation to pay for a non-work-related illness sick leave for the first 3 days of sickness. From the 4th day onward, it is covered by social security.
The law allows 30 days of non-work-related illness sick leave per each 12 months of work.
Employees who have obtained 6 months of social security contributions are entitled to social security illness benefit after 3 days of sickness for up to 3 years of -work-related illness, after which the benefit is converted into a permanent disability benefit, upon a social security medical evaluation.
Employees receive sick pay directly from social security for non-work-related illness at a rate dependent on the duration of sickness as follows:
Social security in Portugal doesn’t cover for sick leave if the illness or injury is related to work. The law determines that all employers must hold a work-related illness/death insurance to cover all employees:
Probationary Periods
For Definite-term contracts a period of 15 days increasing to 30 days for engagements exceeding 6 months.
For Indefinite-term contracts a period of 90 days for most employees, 180 days for job positions which demand high complexity, increasing up to 240 days for senior management roles.
During probation, the employer or the employee may terminate the agreement without cause, notice or severance, except if the probation period lasts more than 60 days, a 7-day notice is due or if lasting more than 120 days, a 15-day notice is due.
Termination Notice
During the probationary period, the required notice period is 7 days if the probation lasts more than 60 days, and 15 days if it exceeds 120 days. Additionally, the employee is waived from providing notice during the probationary period.
For definite-term contracts with a specified term, the notice period is 15 days if the employee has less than 2 years of service, and 30 days if they have more than 2 years of service.
For definite-term contracts with an uncertain term, the notice period is 15 days if the employee has less than 6 months of service, 30 days if they have more than 6 months but less than 2 years of service, and 60 days if they have more than 2 years of service.
For indefinite-term contracts, the notice period is 30 days if the employee has less than 2 years of service, and 60 days if they have more than 2 years of service.
In the case of collective dismissal, the notice period is 15 days if the employee has less than 1 year of service, 30 days for 1 to less than 5 years of service, 60 days for 5 to less than 10 years of service, and 75 days if the employee has more than 10 years of service.
Severance
In the case of collective dismissal, dismissal due to death or insolvency, transfer of establishment, inadaptation, or extinction of a role, employees are entitled to 14 days of salary and seniority payments for each full year of seniority. If there are fractions of a year, the compensation is calculated on a prorated basis.
For the termination of a definite-term or temporary employment contract by the employer, the employee is entitled to 24 days of salary and seniority payments for each full year of seniority. Again, if the seniority includes fractions of a year, the compensation is calculated on a prorated basis.
When a permanent or indefinite-term employment contract is terminated by the employer, the employee is entitled to 14 days of salary and seniority payments for each full year of work. In cases where the seniority includes fractions of a year, the compensation is also calculated on a prorated basis.
Pre-hire Checks
Immigration checks are generally required for expatriates.
Personal information of Personnel, according to Data Protection Law, requires applicant’s consent.
Specific consent required for sensitive information such as a Personnel’s health information for health insurance benefit application process.
Credit checks, criminal records, possible only for specific job positions, according to the law and absolutely indispensable, in order to ensure the right to privacy.
Pregnancy tests prohibited by law, in any case.
Medical exams or health-related tests are mandatory before the start date and are covered by the Employer, the Personnel are obliged to attend.
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The information provided on this website is for general informational purposes only and is subject to change without notice. The content on this website is not intended to be a substitute for professional legal advice, diagnosis, or treatment. While we strive to keep the information up to date and accurate, People 2.0 makes no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability, or availability with respect to the website or the information, products, services, or related graphics contained on the website for any purpose. Any reliance you place on such information is therefore strictly at your own risk.
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