Country facts
The Portuguese Republic is an EU-member and also a member of the UN, the Schengen Area, the Council of Europe and the Eurozone, OECD and NATO.
By nominal GDP it is ranked as the 47th economy in the world and by Human Development Index it is categorized as very high, on 38th place globally.
Capital
Lisbon
Currency
Euro (EUR)
Languages spoken
Portuguese, Mirandese
Population size (2020)
10,3 million
Ease of doing business (world bank ranking)
40
Cost of living index(2021)
52,88
Payroll frequency
Monthly
VAT – standard rate
23%
GDP – real growth rate(2020)
–7,57%
Employing in Portugal
Much of the EU’s legal system with regards to employment is similarly applied in Portugal.
Also its directives regulating labour relations originate in the EU and are thus very similar to many EU neighbours. When it comes to the regulatory landscape surrounding collective labour, Portugal also uses collective employment contracts. Foreigners employed in Portugal have strong legal protection, and are on equal terms with local portuguese employees.
There is no law that states that employment contracts have to be in written, except for when it comes to foreign employees or contracts that are only part-time or fixed term. Portuguese is widely required, among public authorities,as the language that the local paperwork is done in, and so it is recommended to use this locally.
It is often the case that a range of obligatory statutory provisions are included in an employment contract, guided by collective bargaining agreements and the Portuguese Employment Code. The following components are obligatory in an employment contract:
- Full identity of employer
- Working periods
- Applicable Collective Bargaining Agreements
- Notice period for termination
- Date of employment
- Place of work
- Employee’s professional category
- Description of activities performed
- Vacation duration
- Salary amount
List of Public Holidays - 2024
| Date | Holiday Name |
|---|---|
| 1 January | New Years Day |
| 29 Mars | Good Friday |
| 31 Mars | Easter Sunday |
| 25 April | Freedom Day |
| 1 May | Labour Day |
| 30 May | Corpus Christi |
| 10 June | National Day |
| 15 August | Assumption Day |
| 5 October | Republic Day |
| 1 November | All Saints Day |
| 1 December | Restoration of Independence |
| 8 December | Immaculate Conception Day |
| 25 December | Christmas Day |
Minimum wage
The nationwide minimum wage in Portugal in 2021 is 665 euro / month. This applies both to locally hired Portuguese employees and employees working on a Temporary Stay Visa or a Residence Visa for Local Hires.
Salary payouts
Payroll in Portugal is usually run on a monthly basis and wages are paid out before the last day of every month.
Portugal also has mandatory 13th and 14th salary payouts, which are to be paid to all employees in June and December.
Taxes in Portugal
Learn how employment taxes and statutory fees affect your payroll and your employees’ paychecks in Portugal.
Employer
Corporate income tax rate: 21%
Family, Pension and Unemployment insurance : 23.75% of gross salary
Wage guarantee fund : 1% of gross salary
Labour accident insurance : Employers are obliged to purchase insurance premiums to cover occupational accidents for employees
Employee
Family, Pension and Unemployment insurance : 11% of gross salary
About Internago
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