🇵🇹 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.

Last verified 2026-10-05. How we research · Affiliate disclosure

Not professional advice. Rates, rules and prices change often. Figures here are researched estimates from the sources listed; anything marked “unverified” needs checking with the provider or a local adviser before you rely on it.
Key facts: hiring in Portugal
  • 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

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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.

ContributionRateNotes
Taxa Social Unica (TSU) employer23.75%On monthly gross remuneration, no ceiling; employee pays 11% (not verified)
Work accident insuranceVaries by insurer and riskMandatory private insurance
Training obligation40 hours/yearEmployers 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

Employment rules at a glance

PayrollMonthly
Probation90 days standard, extendable to 180 days for complex roles (Remote).
Notice & severanceNotice 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 time40 hours per week (5 days); overtime paid 125% for ordinary extra hours and 150% on public holidays (Remote).
Paid leave22 working days annual leave and 13 national public holidays (Remote).
Minimum wageEUR 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

Pricing is global list pricing where public; country-specific quotes may differ. Full “best EOR for Portugal” guide →

ProviderBest forEOR pricingCoverage
DeelCompanies 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
RemoteTeams 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
RipplingCompanies already running (or willing to adopt) a unified HR, IT and finance platform who want global hiring as an add-on module.Quote-based / not public—Visit Rippling
OysterDistributed 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 required120+ countries EOR; contractors in 180+ countries (vendor claim)Visit Oyster
Papaya GlobalMid-size and larger companies that need multi-country payroll orchestration and workforce payments, and will go through a sales process.Quote-based / not public160+ countries (vendor claim as repeated on FlexOffers listing and third-party pages)Visit Papaya Global
MultiplierCost-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
RemofirstSmall 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 page185+ 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

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Related

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.

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

Sources

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