🇵🇹 Hire in Portugal: cost, rules and best EOR options
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 on-costs: 24–27% of gross salary (on a $60,000 salary, about $74,400–$76,200 total)
- EOR onboarding: Not verified from a retrieved provider source; own entity: Not verified from a retrieved source
- Probation: 90 days standard, extendable to 180 days for complex roles (Remote).
- Currency: Euro (EUR)
- Data confidence: medium, verified 2026-10-05
Get matched for PortugalCalculate cost
What it costs to employ someone in Portugal
Employer on-costs run roughly 24–27% on top 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) |
Employer withholds progressive IRS income tax (14.5%-48% plus 2.5%-5% solidarity surcharge above EUR 80,000, per Remote) and employee social security, and remits monthly.
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)
Employment rules at a glance
| Payroll | Monthly |
|---|---|
| Probation | 90 days standard, extendable to 180 days for complex roles (Remote). |
| Notice & 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). |
| 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). |
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.
Employee or contractor in Portugal?
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).
Compare contractor vs employee cost →
Hiring through an EOR in Portugal
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.
Typical onboarding: EOR Not verified from a retrieved provider source; own entity Not verified from a retrieved source. UTC+0 (WET) in winter, UTC+1 in summer: 5 hours ahead of US Eastern.
Providers worth shortlisting
| Provider | Best for | EOR pricing | Coverage | |
|---|---|---|---|---|
| Deel | Companies that want one platform for contractors, EOR and a US PEO, with transparent per-seat list prices. | $599 per EOR employee per month (public list price, checked 2026-10-05) | 150+ countries (vendor claim, per Deel's own and third-party descriptions) | Visit Deel |
| Remote | Teams that want a published price for each product (EOR, global payroll, contractors, contractor of record, US PEO) and an affiliate program with 12-month revenue share. | $699 per employee/month (public list price, checked 2026-10-05) | 90+ countries for EOR (vendor pricing page claim) | Visit Remote |
| Rippling | Companies already running (or willing to adopt) a unified HR, IT and finance platform who want global hiring as an add-on module. | — | Visit Rippling | |
| Oyster | Distributed teams that want published EOR and contractor prices and a long-running affiliate program with tiered revenue share. | $699 per employee/month (public list price, checked 2026-10-05); annual discounts available; refundable deposit required | 120+ countries EOR; contractors in 180+ countries (vendor claim) | Visit Oyster |
| Papaya Global | Mid-size and larger companies that need multi-country payroll orchestration and workforce payments, and will go through a sales process. | 160+ countries (vendor claim as repeated on FlexOffers listing and third-party pages) | Visit Papaya Global | |
| Multiplier | Cost-conscious teams that want EOR priced below $500 per employee with an annual discount. | Third-party summary of Multiplier's pricing: EOR from $459/employee/month on annual contracts and $499 on monthly contracts (not confirmed; multiplier pricing page returned 403 to our fetch) | — | Visit Multiplier |
| Remofirst | Small teams that want the lowest published EOR starting price and a free contractor tier. | Starting at $199 per person/month (public list price, checked 2026-10-05); 'no hidden fees, setup fees, or minimum contract terms' per vendor page | 185+ countries for EOR (vendor claim) | Visit Remofirst |
| Pebl (formerly Velocity Global) | Companies that want an EOR with a tiered reseller/partner program and are comfortable with a recently rebranded vendor. | Third-party reports a flat $399 per employee/month (not confirmed on vendor page; hellopebl.com/pricing returned 404) | 185+ countries (third-party report) | Visit Pebl (formerly Velocity Global) |
Paying and covering your team in Portugal
Related
- Hire in Poland vs Portugal
- Hire in Portugal vs Spain
- Hire Developers Abroad: Best Countries Compared (2026)
- EOR vs PEO vs own entity
- Contractor vs employee calculator
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.