Portugal

• Freedom Day
• Labour Day
• Portugal Day
• Saint Anthony’s
• Assumption Day
• Republic Day
• All Saint’s Day
• Restoration of Independence Day
• Immaculate Conception
• Christmas Day

Working Hours

The Portuguese Labour Law establishes a maximum of 8 daily working hours and 40 weekly working hours. A  collective bargaining agreement may fix fewer working hours per week or day.

Minimum Wage

The current minimum wage in Portugal is EUR 760.00 per month.

Employee Tax

Annual income	Tax rate
Up to EUR 7,479	14.5%
EUR 7,479 - 11,284	21% - EUR 486.14
EUR 11,284 - 15,992	26.5% - EUR 1,106.73
EUR 15,992 - 20,700	28.5% - EUR 1,426.65
EUR 20,700 - 26,355	35% - EUR 2,772.14
EUR 26,355 - 38,632	37% - EUR 3,299.12
EUR 38,632 - 50,483	43.5% - EUR 5,810.25
EUR 50,483 - 78,834	45% - EUR 6,567.33
More than EUR 78,834	48% - EUR 8,932.68
Social security contribution	11%

Bonuses

There are mandatory 13th and 14th salary payments in Portugal.

Employment contracts in Portugal must be written. They should include the terms of the employee’s compensation, benefits, and termination requirements.

An offer letter and employment contract in Portugal must always state the annual salary and any compensation amounts in Euros rather than a foreign currency.

Annual Leave

The statutory minimum is 22 workdays (a maximum of 20 days in the first year of employment, with the employee acquiring 2 days per complete month).

Sick Leave

Portuguese social security pays after the 3rd day of illness. Employees can receive sick pay for up to 1,095 days. Pay is generally 55% to 75% of the employee’s salary.

Parental Leave

In Portugal, parents can take up to 120 or 150 consecutive days of maternity or paternity leave after childbirth. Leave between 120 and 150 days can also be taken simultaneously by both parents.

Termination Process

Employers in Portugal must give the following number of days notice when terminating a contract:

• 15 days is required for employees with less than 1 years’ service
• 30 days for those between 1 and 5 years’ service
• 60 days for those between 5 and 10 years’ service
• 75 days for employees with over 10 years’ service

Severance Pay

In Portugal, the employee is entitled to severance pay where there has been termination for objective reasons.

Generally, employees are entitled to compensation equivalent to 20 days’ base remuneration for each year of service.

Under a Mauve Group Employer of Record solution, clients and workers can reap the benefits of Mauve’s Global Master Insurance Programme – a market-leading unified corporate insurance programme that connects all Mauve entities to its two preferred providers.

The insurance provides coverage in overseas locations through a combination of the master policy and its linked local policies, where required by law in certain jurisdictions.  The policies include:

• Employer’s Liability and Public Liability - £10,000,000 combined limit.
• Professional Indemnity - £5,000,000 limit.
• Worker’s Compensation – Limit is dependent on location of work.

For specific information about statutory and recommended insurances in your chosen country, get in touch with Mauve.