Contractor vs employee calculator
Compare the cost of engaging someone as a contractor versus an employee through an EOR, with the country's misclassification notes.
| Option | Estimated annual cost | What you get |
|---|---|---|
| Contractor | $69,588 | Cheapest on paper. No statutory benefits; reclassification risk in Portugal if the relationship looks like employment. |
| Employee via EOR | $81,588 – $83,388 | Local contract, statutory benefits and payroll compliance handled by the EOR. |
Portugal contractor risk: 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). Not legal advice.
Want to hire this person in Portugal?
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.