Hire in Portugal

Portugal

PEO &

Employer of Record

Hire employees remotely in Portugal without a local entity. We handle HR compliance, payroll & taxes so you can focus on your business.

Business Language

Portuguese, English

Salary Currency

Euro

Capital city

Lisbon

Time zone

UTC -1

EOR in Portugal

Hire Employees in Portugal

NNRoad provides payroll & employer of record (EOR) services in Portugal to ensure that your business complies with local labor laws and regulations. We process monthly payroll and act as the Employer of Record, taking on all local employer liabilities.

Fast Hiring

Start working with your remote employees in a week.

Foreigner Visas

NNRoad assists with overseas foreign hires visa needs.

Platform

Access your payroll reports on our portal.

Employer of Record (EOR) in Portugal

Employer of Record (EOR) services are for companies who do not have a legal entity in Portugal, but who want to hire localy. Employment and full liability are outsourced to NNRoad.

1. Candidate Selection

Select the candidates you want to hire in Portugal.

2. Employee Onboarding

We sign a local labor contract with your employees based in Portugal.

3. Compliance & Payroll

We manage monthly payroll, mandatory benefits & all HR compliance in Portugal.

EOR service includes:

Hiring and termination of employees/local labor contracts (contract administration – engagement, extension termination and conversion to permanent hire).

All mandatory employer (and employee) contributions filed and paid for your EOR employees.

Payroll recording, reporting and administration.

Distribution of salaries to employees through direct deposit into their bank accounts.

Calculation, reporting, filing and processing of EOR employee’s individual income tax due.

Collecting and processing your employee’s invoices for business related expenses.

Guiding and organizing your expat employee’s work visa application too guarantee their successful onboarding.

Standalone Payroll in Portugal

Payroll services are for companies who have a legal entity in Portugal, and want to outsource their salary disbursement, mandatory benefits, income tax filing and mandatory reports.

Employer of Record Status in Portugal

Using an Employer of Record (EOR) to hire employees in Portugal is a legal and effective strategy for companies looking to expand without establishing a local entity. An EOR takes on the legal responsibilities of an employer, managing payroll, taxes, benefits, and ensuring compliance with Portuguese employment laws.

Hiring an Expat with an EOR in Portugal

For hiring foreign expats, an EOR facilitates the necessary work visas and permits, ensuring compliance with all legal requirements. This includes managing the process for obtaining a work visa and handling any specific documentation required by Portuguese authorities.

Employee Income Taxes:

Individual income tax rates in Portugal are based on progressive tax brackets.

In Portugal, employee income tax is typically declared income tax, where employees are responsible for declaring their income tax to the government.

Tax Brackets:

Sample Calculation

14.5%: 0 to 7,112
23.0%: 7,112 to 10,732
28.5%: 10,732 to 20,322
35.0%: 20,322 to 25,075
37.0%: 25,075 to 36,967
45.0%: 36,967 to 80,822
48.0%: >80,822
Tax on a 100,000EUR annual income:

7,112 * 0.145 = 1,031.64
(10,732 – 7,112) * 0.23 = 825.56
(20,322 – 10,732) * 0.285 = 2,729.40
(25,075 – 20,322) * 0.35 = 1,667.25
(36,967 – 25,075) * 0.37 = 4,294.31
(80,822 – 36,967) * 0.45 = 19,727.25
(100,000 – 80,822) * 0.48 = 9,391.04

1,031.64 + 825.56 + 2,729.40 + 1,667.25 + 4,294.31 + 19,727.25 + 9,391.04 = 39,666.45EUR in taxes

Employer Contribution

Employers in Portugal contribute to various social security funds, including:
Social Security: Social Security Contribution – % contribution figures vary depending on the type of employment contract and salary bracket.

Employee Contribution

Employees also make contributions to social security funds, with % contribution figures varying based on salary and specific fund requirements.

Social Security

Social security in Portugal encompasses various benefits, including healthcare, unemployment, and pensions

Pension Fund

Employers may offer pension funds to employees as part of their benefits package.

Healthcare Insurance

Healthcare insurance coverage is typically provided as part of the benefits package in Portugal.

Working Hours Per Week

The standard working week in Portugal is typically 40 hours.

Overtime

Overtime work in Portugal is regulated by law, with compensation rates and maximum hours outlined in labor regulations.

Legal grounds for termination in Portugal vary, and detailed information can be found here.

Severance

Severance pay in Portugal may be provided in specific termination situations, as outlined by labor laws.

Notice Period

  • For employers: Employers in Portugal must provide notice to employees before termination, as specified by law.
  • For quitting employees: Employees quitting their jobs in Portugal must also provide notice to their employers as stipulated by labor regulations.
  • Employment Contract

    Portuguese labor contracts should specify terms such as job role, salary, working hours, and duration of the contract.

    Probation Period

    Labor contracts in Portugal may include a probation period during which both employers and employees assess suitability for the position.

    Annual Leave

    In Portugal, the mandatory annual leave entitlement is typically 22 working days.

    Sick Leave

    Employees in Portugal are entitled to paid sick leave for up to 30 days per year. After this period, sick leave may continue but may be unpaid.

    Maternity Leave

    Maternity leave in Portugal typically lasts for 120 consecutive days, with 6 weeks mandatory leave after childbirth.

    Paternity Leave

    Paternity leave in Portugal allows fathers to take up to 20 days off following the birth of a child.

    Public Holidays

    January 1st – New Year’s Day
    Date varies – Carnival
    Date varies – Good Friday
    April 25th – Freedom Day
    May 1st – Labour Day
    June 10th – Portugal Day
    August 15th – Assumption of Mary
    October 5th – Republic Day
    November 1st – All Saints’ Day
    December 1st – Restoration of Independence
    December 25th – Christmas Day

    Resources

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