GLOBAL EMPLOYER OF RECORD IN PORTUGAL
Employ talent in Portugal without setting up a local entity
Hire the best local or international talent in Portugal, fill priority roles and grow your presence without making incorporation the first commitment. Acumen acts as your Employer of Record, so the hiring decision can move ahead while your longer-term entity strategy develops separately.
GLOBAL EMPLOYER OF RECORD
Global Coverage
Acumen International delivers global employment solutions across 190+ countries.
Strategic markets
Hiring and compliance support across North America, Europe, and Asia-Pacific.
Established jurisdictions
Lawful employment and payroll in regulated, compliance-intensive countries.
Growth economies
Expanding into new regions? Hiring support across fast-moving economies.
Risky and remote locations
Compliant employment solutions in jurisdictions with limited infrastructure.
Employer of Record in Portugal under the Labour Code
Portugal’s Labour Code (Código do Trabalho) treats the employer as the party that hires, pays and is accountable for the employee. An Employer of Record in Portugal takes on that role in full, and the Code shapes how the arrangement is built:
| Requirement | What it means for your Portuguese hire |
|---|---|
| A genuine employer | The legal employer signs the contract and carries every employer duty: pay, Social Security, workplace accident insurance, occupational health, training and working time records |
| A service agreement | Your company contracts for employment and HR services, with the tasks, objectives and IP terms set out in writing |
| Temporary cover through a licensed agency | Where you need someone only for a temporary peak or to replace an absent employee, the hire runs through a temporary work agency licensed by the employment institute (IEFP) |
| Equal treatment for agency assignments | A temporary agency worker receives the pay and conditions your company gives comparable staff |
| A planned route to your own entity | Once you open a Portuguese company, employees can move across on an agreed date with their seniority recognised |
The operating split: Acumen International is the legal employer, holding the Portuguese contract, registering the employee with Social Security, running payroll and withholding IRS, while you set the work and goals day to day.
Employment in Portugal at a glance
Last reviewed October 2026.
| Item | Portugal |
|---|---|
| Currency | Euro (EUR) |
| Capital | Lisbon |
| Minimum wage | €920 a month over 14 payments (2026), or €12,880 a year |
| Salary payments | 12 monthly salaries plus a holiday allowance and a Christmas allowance, each worth a month’s pay |
| Employer Social Security | 23.75% of gross pay, with no ceiling, plus mandatory workplace accident insurance |
| Employee Social Security | 11% of gross pay, with no ceiling |
| Income tax (IRS) | Progressive, from 12.5% to 48%, plus a solidarity surcharge on high incomes, withheld monthly |
| Working time | 8 hours a day and 40 hours a week |
| Annual leave | 22 working days |
| Public holidays | 13 national holidays plus a municipal holiday |
| Probation | 90 days as standard; 180 days for technical or senior-trust roles; 240 days for directors and senior managers |
| Employer notice | 15 to 75 days, depending on length of service |
| Training | At least 40 hours a year for every employee |
Minimum wage, collective agreements and the 14 salary payments in Portugal
Portugal’s national minimum wage (retribuição mínima mensal garantida) is €920 a month in 2026, paid 14 times a year. Most professional salaries sit well above it, so the floor that matters day to day is usually the sector collective agreement.
Collective agreements. Sector agreements set pay grades, allowances, working hours and extra leave. The government often extends them by ministerial order (portaria de extensão) to every employer in the sector, whether or not it belongs to the signing association, so the right agreement and grade are checked before an offer is made.
Holiday allowance (subsídio de férias). Every employee receives an extra payment equal to a month’s base pay and regular allowances, normally paid before their main holiday.
Christmas allowance (subsídio de Natal). A further month’s pay, due by 15 December, prorated in the years an employee joins or leaves.
Because of these two allowances, Portuguese salaries are discussed as 14 payments, and an annual gross figure divides by 14 rather than 12. A candidate comparing a €42,000 offer will expect €3,000 a month, not €3,500.
Employment contracts, probation and working time in Portugal
- Written terms: each employee receives written information on the essential terms of the job within 7 days of starting, and contracts with non-EU nationals are made in writing.
- Open-ended contracts: the standard form of employment for ongoing roles.
- Fixed-term contracts: only for a temporary need, stated in the contract. A fixed-term contract lasts at most 2 years with up to three renewals, an open-dated one at most 4 years, and the employee receives 24 days’ pay per year of service when it ends.
- Probation: 90 days for most roles, 180 days for technically complex or senior-trust roles and first-time job seekers, and 240 days for directors and senior managers. After 60 days of probation, the employer gives 7 days’ notice to end it, rising to 15 days after 120 days.
- Working time: up to 8 hours a day and 40 hours a week, with at least 11 hours’ rest between working days. Overtime is capped at 150 hours a year in businesses with 50 or more employees and 175 hours in smaller ones, and is paid at a premium.
- Remote work: agreed in writing, with the employer covering the extra costs of working from home. Employers must not contact employees during their rest time, except in force majeure.
- Post-employment non-compete: valid only in writing, for up to 2 years (3 for senior-trust roles), and only if the employee is compensated for it.
Notice periods, dismissal and severance in Portugal
Portugal’s Constitution protects employees against dismissal without just cause, so every exit by the employer follows one of the routes set out in the Labour Code, each with its own procedure:
| Route | When it applies | Severance |
|---|---|---|
| Disciplinary dismissal (justa causa) | Serious misconduct that makes the relationship impossible to continue; a written statement of charges, 10 working days for the employee’s reply, and a written decision | None |
| Job extinction (extinção do posto de trabalho) | A single role ends for market, structural or technological reasons, with set criteria for choosing whose role goes | 14 days’ pay per year of service |
| Collective dismissal | 2 or more employees within three months in businesses under 50 staff, or 5 or more in larger ones, after consultation with employee representatives | 14 days’ pay per year of service |
| Unsuitability (inadaptação) | The employee cannot adapt to changes in the role after training and an adjustment period | 14 days’ pay per year of service |
| Mutual agreement (revogação) | Both sides agree in writing; the employee can withdraw within 7 days | As negotiated |
For the redundancy-type routes, the employer gives notice of 15 days for under a year’s service, 30 days for 1 to 5 years, 60 days for 5 to 10 years and 75 days beyond that. Severance is capped at 12 months’ pay, and employees with long service keep the higher rates that applied to their earlier years. After a job extinction or collective dismissal, the employer cannot outsource the same work for 12 months.
An employee has 60 days to challenge a dismissal. If a court finds it unlawful, the employee can choose reinstatement or compensation of 15 to 45 days’ pay per year of service (at least 3 months’ pay), plus pay lost since the dismissal. Employees who resign give 30 days’ notice, or 60 days after two years’ service.
Employment risk mitigation in Portugal
| Risk | Where it arises | How Acumen International mitigates it |
|---|---|---|
| Worker misclassification | Contractors paid on green receipts (recibos verdes) who work like staff are presumed to be employees, and the labour inspectorate (ACT) can take the case to court on their behalf | Freelance arrangements reviewed and converted to Portuguese employment wherever the work is directed like a job |
| Temporary agency rules | If an agency is unlicensed or the assignment has no valid temporary reason, the worker becomes a permanent employee of the company using them | Temporary needs met only through IEFP-licensed agencies, with ongoing roles employed directly by Acumen International |
| Dismissal | A missing step in the procedure makes a dismissal unlawful, with reinstatement or up to 45 days’ pay per year of service | Route, procedure, notice and severance mapped out with you before any exit begins |
| Fixed-term contracts | A contract without a genuine temporary reason, or that runs past its limits, converts to an open-ended one | Fixed-term contracts used only for real temporary needs, with the reason written in |
| Holiday and Christmas allowances | Leaving regular allowances out of the calculation leads to back-pay claims | Both allowances calculated on base pay plus every regular component |
| Pay transparency | Employers must have a transparent pay policy based on objective criteria, and the EU Pay Transparency Directive adds new duties | Pay grades and criteria documented for each role and applied consistently |
| IP ownership | Software written in the course of duties belongs to the employer, but other creative work stays with the employee unless the contract assigns it, and some inventions carry a right to extra pay | Full IP assignment in the employment contract and the service agreement, covering code, designs, content and inventions |
| Health and safety | Workplace accident insurance and occupational health services are compulsory for every employee | Accident insurance in place and medical checks arranged before and during employment |
| Taxable presence | Portuguese staff who habitually conclude contracts for your company can create a permanent establishment | Contract-signing and negotiating powers agreed role by role with your tax adviser |
| Residence permits | Blue Card and work-based permits depend on the contract, salary and employer named in the application | Changes to pay, role or hours checked against permit conditions before they are made |
Hiring international talent in Portugal: EU Blue Card and work visas
Portugal attracts skilled professionals from across the world, and non-EU hires usually take one of three routes. Each starts with a signed contract or binding job offer and a visa from the Portuguese consulate, followed by a residence permit from AIMA, the Agency for Integration, Migration and Asylum.
| Route | Best suited for | Key conditions |
|---|---|---|
| EU Blue Card | Graduates, and experienced professionals in highly qualified roles | A contract of at least 6 months and a salary above a threshold linked to Portugal’s average gross annual salary, lower for shortage professions |
| Highly qualified activity visa | Specialists and managers in roles that need advanced skills | A contract or offer for a highly qualified role and proof of qualifications |
| Work visa for employment | Other roles with a Portuguese contract | A contract or binding offer and the general conditions for entry |
| EU, EEA and Swiss nationals | Free movement | No permit required; a registration certificate from the town hall for stays over 3 months |
Blue Card holders can bring their families with them, and the card gives a route to move within the EU after 12 months. Every new employee also needs a Portuguese tax number (NIF) and a Social Security number (NISS) before the first payroll.
Cost of employing in Portugal: Social Security and IRS
Portugal’s employer cost is simpler to estimate than most: one Social Security rate, with no ceiling, applies to all 14 salary payments.
| Cost item (2026) | Employer | Employee |
|---|---|---|
| Social Security (Taxa Social Única) | 23.75% | 11% |
| Workplace accident insurance | Premium set by the insurer according to the job’s risk | None |
| Occupational health services | Cost of the compulsory service and medical checks | None |
| Holiday and Christmas allowances | Two extra months’ pay a year | None |
| Training | At least 40 hours a year per employee | None |
Income tax. IRS is withheld from each payment under monthly withholding tables, with the holiday and Christmas allowances withheld separately. The scale has nine brackets, from 12.5% to 48%, and a solidarity surcharge of 2.5% applies to taxable income between €80,000 and €250,000, rising to 5% above that.
IRS Jovem for younger hires. Employees aged 35 or under pay no IRS on their employment income in their first year of work, 75% exemption in years 2 to 4, 50% in years 5 to 7 and 25% in years 8 to 10, on income up to €29,542 a year in 2026. It makes Portuguese offers to early-career talent go much further.
IFICI for newcomers. Professionals who move to Portugal after five years abroad can pay a flat 20% on qualifying employment income for 10 years. The regime is limited to certain roles and employers, such as research, certified start-ups and export-led companies, so eligibility is checked for each hire.
The Global Payroll Calculator spreads a Portuguese salary across all 14 payments and adds the employer’s Social Security to every one, drawing on Acumen International’s 1,500-plus official sources confirmed with local lawyers and accountants.
Where Portuguese demand for specialists is growing
Portugal has become a favourite base for international engineering, product and service teams, helped by strong technical universities, high English proficiency and a time zone shared with the UK. Demand reaches well beyond Lisbon, with Porto, Braga, Aveiro and Coimbra all building specialist hubs.
| Sector | Roles in demand |
|---|---|
| Technology and software engineering, in Lisbon, Porto and Braga | Software, cloud, data and cybersecurity engineers |
| Global business services and nearshore centres | Finance, customer operations and multilingual support specialists |
| Renewable energy, green hydrogen and data centres, with Sines a major hub | Electrical, grid and project engineers |
| Automotive components and electric mobility | Production, quality and embedded software engineers |
| Aerospace, around Évora and the Lisbon region | Aerostructures, manufacturing and quality engineers |
| Life sciences, centred on Porto, Coimbra and Lisbon | Clinical research, regulatory and laboratory specialists |
Why companies hire in Portugal with Acumen International
- Hire first, incorporate later. Keep the hiring decision separate from the entity decision, and set up a Portuguese company only when the team and revenue justify it.
- Build a nearshore team quickly. Add engineers in Porto or Braga to a UK or European team without opening a local office.
- Bring recibos verdes contractors in-house. Move long-term freelancers onto Portuguese employment contracts and remove the risk of a presumed employment claim.
- Keep people through restructuring. Hold acquired, transferred or carved-out staff on stable terms, or move them from another PEO or Employer of Record, while the permanent structure is decided.
- Sponsor talent from outside the EU. Combine the Portuguese employment contract with the Blue Card or work visa application under one provider.
- Plan every euro in advance. The 14 payments, Social Security, insurance and tax incentives are costed and the right contract route chosen before an offer is made.
- Run Portugal alongside other markets. Founded in the UK in 2000 and active in more than 190 countries, Acumen International employs your Portuguese team under the same agreement as your hires elsewhere, taking on the employer’s liability in each country.
Employee benefits and payroll in Portugal
A daily meal allowance (subsídio de refeição) is part of almost every Portuguese package and is free of tax up to a daily limit, which is higher when it is paid onto a meal card. Private health insurance is the benefit candidates ask about most, often extended to family members, followed by life insurance, an annual bonus, flexible benefit budgets and, for senior and sales roles, a company car. Each package is shaped around the role and the candidate, on top of the statutory 14 payments.
Payroll. Before the first working day, Acumen International registers the employee’s start with Social Security. Each month it issues the payslip, declares pay to Social Security and the Tax Authority by the 10th of the following month and pays contributions and withheld IRS by the 20th. Each year it gives employees their annual income statement and files the single social report (Relatório Único) on the workforce.
Annual leave and statutory leave in Portugal
| Leave | Entitlement | Pay |
|---|---|---|
| Annual leave | 22 working days; in the first year, 2 days for each month worked, up to 20 days | Employer, full pay plus the holiday allowance |
| Public holidays | 13 national holidays plus a municipal holiday; Carnival Tuesday is optional | Employer, full pay |
| Initial parental leave | 120 or 150 consecutive days, shared between parents, with 42 days reserved for the mother after birth; 180 days if each parent takes at least 30 alone | Social Security: 100% for 120 days, 80% for 150 days, 100% for 150 shared days |
| Father’s leave | 28 compulsory days within 42 days of the birth, plus 7 optional days | 100% from Social Security |
| Additional parental leave | Up to 3 months per parent after the initial leave | Partly paid by Social Security |
| Sick leave | As certified by a doctor; employees can also self-declare up to 3 days twice a year | No pay for the first 3 days; Social Security from day 4, from 55% rising with the length of absence |
| Care for a sick child | Up to 30 days a year for a child under 12 | Social Security allowance |
| Marriage | 15 consecutive days | Employer, full pay |
| Bereavement | 20 days for a child; 5 days for a spouse, partner or parent; 2 days for other close relatives | Employer, full pay |
Sources
- Labour Code (Law 7/2009)
- Social Security Contributions Code (Law 110/2009)
- Portugal approves minimum wage increase to €920 for 2026
- 2026 State Budget: IRS reduction and updated brackets
- IRS Jovem 2026: who qualifies
- Tax incentive for scientific research and innovation (IFICI)
- Labour reform vote of June 2026
FREQUENTLY ASKED QUESTIONS
Got questions?
We’ve got answers
Have questions about hiring globally? You’re not alone. Below you’ll find answers to the most common questions from teams expanding into new markets — from compliance and onboarding timelines to payroll and local benefits.
If you don’t see what you’re looking for, our team of in-country experts is always ready to help you navigate the details.
Can an EOR be used only until our Portugal entity is ready?
Yes, where the hire is suitable. Acumen Intyernational can employ the person while your own entity in Portugal is being established, then support a later move to direct employment once the entity is ready and the transition can be completed correctly.
Can our employees in Portugal sit within the same EOR programme as hires in other countries?
Yes. Acumen can coordinate Portugal alongside other EOR markets through one provider relationship, while keeping each employee under the employment rules that apply locally. Global consistency can cover governance, reporting and service ownership without forcing identical employment terms across countries.
Can we offer benefits above the statutory minimum in Portugal?
Yes. Statutory entitlements form the baseline, not the ceiling. Acumen can help add supplementary benefits that fit the role and the market in Portugal, while keeping the package workable from a payroll, tax and administration perspective.