# Hire in Portugal

Source: https://overseashire.com/hire/portugal · verified 2026-10-05 · confidence medium

Large English-speaking engineering and product talent pool in Lisbon and Porto, in a western Europe time zone with low cost relative to northern Europe.

## Employer cost
Employer on-costs 24–27% of gross salary. Employer social security (TSU) 23.75% on gross remuneration with no cap (PwC) plus work accident insurance (premium varies by insurer and risk; roughly 1%-2% is a general estimate, not verified) and small fund levies. Holiday and Christmas subsidies are part of the 14 annual payments of gross pay, not extra on-costs. Optional meal allowance not included.

| Contribution | Rate | Notes |
|---|---|---|
| Taxa Social Unica (TSU) employer | 23.75% | On monthly gross remuneration, no ceiling; employee pays 11% (not verified) |
| Work accident insurance | Varies by insurer and risk | Mandatory private insurance |
| Training obligation | 40 hours/year | Employers must provide 40 hours of training per year or compensate on termination (Remote) |

Mandatory benefits: 14 annual salary payments (holiday and Christmas subsidies); Meal allowance (not mandatory but common, tax-exempt up to a limit); Work accident insurance; 40 hours annual training; Work-from-home expense allowance when remote (Remote)

## Rules
- Payroll: Monthly
- Probation: 90 days standard, extendable to 180 days for complex roles (Remote).
- Notice and severance: Notice for dismissals on indefinite contracts per Remote: 30 days up to 2 years of service, 60 days beyond. Severance applies to collective and objective dismissals (rates not verified from a retrieved source).
- Termination: Portugal does not allow dismissal without cause; dismissal needs a disciplinary procedure, collective redundancy, extinction of position or unsuitability, each with strict procedure. Illegal dismissal can mean reinstatement.
- Working time: 40 hours per week (5 days); overtime paid 125% for ordinary extra hours and 150% on public holidays (Remote).
- Paid leave: 22 working days annual leave and 13 national public holidays (Remote).
- Minimum wage: EUR 920 per month (14 payments) from January 2026 (Remote).

## Contractors
Portugal presumes employment if indicators such as subordination, fixed hours and company equipment exist (Labour Code); misclassification brings back social security and fines (rules not verified from a retrieved source).

## EOR
Direct hiring requires a Portuguese entity or registered branch with tax and social security registration. EOR is commonly used to avoid entity setup. Provider onboarding times not verified.
Onboarding: EOR Not verified from a retrieved provider source; own entity Not verified from a retrieved source.

## FAQ
**What is the employer social security rate in Portugal?** 23.75% of gross remuneration with no cap (PwC).

**How many salary payments per year?** 14: 12 monthly plus holiday and Christmas subsidies.

**How much annual leave is required?** 22 working days plus 13 public holidays (Remote).

**Can I dismiss without cause?** No. A valid statutory ground and procedure are required.

Unverified: Accident insurance premium level; Employee TSU rate; Severance formulas; Contractor presumption rules; EOR and entity timelines

Sources:
- https://taxsummaries.pwc.com/portugal/corporate/other-taxes
- https://remote.com/country-explorer/portugal

Not legal or tax advice.