TL;DR — Hiring in Portugal
- Fully-loaded employer cost: ~24% on top of gross (incl. 14 monthly payments)
- Social Security (TSU): 23.75% flat employer rate
- 14 monthly salaries — June (holiday) and December (Christmas) bonuses are mandatory
- 22 working days statutory annual leave
Last reviewed:
Statutory employer costs in Portugal
In Portugal, employers pay a flat 23.75% Social Security contribution (TSU) plus ~1% work accident insurance, for a total of roughly 24–25% on top of gross. Salary is paid across 14 months — the 13th in June (subsídio de férias) and 14th in December (subsídio de Natal) are statutory, not optional. The calculator treats your annual gross input as inclusive of both bonuses.
| Contribution | Employer rate | Notes |
|---|---|---|
| Social Security (TSU) | 23.75% | Flat employer rate; covers pension, unemployment, sickness, family |
| Work accident insurance | ~1.0% | Mandatory via private insurer; rate by occupation |
| Fundo de Compensação (FCT/FGCT) | 1.0% | Termination compensation fund for contracts after Oct 2013 |
Mandatory employee benefits
Beyond statutory contributions, Portugal law requires the following benefits the employer must fund.
- 14 monthly salaries
- Holiday bonus (June) and Christmas bonus (December) — each equal to one month of salary.
- Annual leave
- 22 working days minimum, plus 13 public holidays.
- Meal allowance
- Common — up to €6/day tax-free if paid via meal card; cash allowance taxable above €4.77/day.
Termination, notice and severance
Probation
90 days standard; 180 days for complex/technical roles; 240 days for executives.
Notice period
15–75 days depending on tenure; longer for executives.
Severance
12 days per year of service for post-2013 contracts; older contracts have legacy formulas.
Common compliance pitfalls
- Just-cause dismissal is hard to prove — collective dismissal and abolishment of post are the main legal routes.
- Fixed-term contracts are restricted and convert to permanent after 2 years or 3 renewals.
- Digital Nomad Visa hires still owe Portuguese Social Security if employed by a Portuguese entity / EOR.
Frequently asked questions
Is the 14th-month salary mandatory in Portugal?
Yes. Holiday and Christmas subsidies are statutory — each equal to one month of salary. EOR quotes should clarify whether the annual gross they show is across 12 or 14 payments.
What's the employer Social Security rate?
A flat 23.75% on gross salary, with no cap. Work accident insurance adds another ~1%.
Does the NHR tax regime apply to EOR employees?
NHR has been replaced by IFICI (Tax Incentive for Scientific Research and Innovation) from 2024. Eligibility is narrower and tied to qualifying roles — confirm before promising tax benefits in offers.
Sources
Statutory rates and rules verified against the following authorities. We update this page when rates change.