Portugal Employer of Record Services
Payroll & Tax in Portugal
A beginners guide to understanding payroll and tax in Portugal
Employer of Record Portugal
Download our full Portugal Employment Guide
Find out all about employing in Portugal
How we can help
Our fully-compliant payroll service in Portugal ensures your employees are paid on time, every time
Whatever the territory or region, you need to attract and retain the best talent. But different countries and different cultures mean different employee expectations. Portugal is no exception.
Payroll is key for any business; paying the correct salary to your business’s employees is vital. Using Agility EOR means that your employees in Portugal are paid on time, every time.
Agility EOR offers the following payroll services in Portugal:
- Salaries paid per month, in local currency
- Electronic payslips
- Statutory filing completed by us
- End of year reporting
what to expect
How does Payroll in Portugal work?
Pay your staff once a month
In Portugal, a 13th and 14th wage payment are sent out annually in June and December, respectively.
Discretionary bonuses
Bonuses are generally defined as discretionary, and therefore not required to be placed in the contract of employment.
National minimum wage
Employees must be paid at least the national minimum wage. The minimum wage for a full-time employee is €822.50 per month, assuming 12 instalments. This equates to 14 instalments of €705 per year.
Our approach
It is common in Portugal to pay employees once per month, and Agility EOR make the payment on the last working day of every month. You can also agree whether overtime should be paid (this is not a requirement so long as they receive the national minimum wage rate) or given as time off in lieu.
Tax in Portugal
Portuguese employers' costs include:
Employer Contributions
- Social Security – 23.75%
- Wage Guarantee Fund – 1.0%
- Labour Accident Insurance – 1.75%
Portuguese employees' tax include:
Employee Contributions
- Social Security – 11%
Annual Salary (EUR) | Tax Rate |
€0 to €7,115 | 14.5% |
€7,116 to €10,735 | 23% |
€10,736 to €15,215 | 26.5% |
€15,216 to €19,695 | 28.5% |
€19,696 to €25,075 | 35% |
€25,076 to €36,756 | 37% |
€36,757 to €48,032 | 43.5% |
€48,033 to €75,008 | 45% |
€75,009 and over | 48% |
Wondering if expanding
in Portugal is right for you?
Read on or speak to a member of our team now
learn more
We are Portugal EOR experts
We have extensive experience helping businesses expand their workforce in the Portugal. Take a look at our areas of expertise below:
We provide a fully-managed EOR Service in Portugal, including HR, Payroll and Legal Compliance support
Enhance your understanding of what your employee is entitled to when working in Portugal
Learn more about how you can attract and retain staff in Portugal with both statutory and enhanced employee benefits
Unsure about what’s required when employing staff in Portugal? Find out about Portuguese Work Permits and Visas here
Wondering what it’s like to live and work in Portugal? We’ve got you covered in our extensive guide, including the do’s and don’ts
Without Agility EOR, our ability to move quickly and scale would be extremely limited. Superb work from A to Z.
Carol Oliveira
Learn more
Frequently Asked Questions
Payrolling the employees is a key part of the service offered by an employer of record company. The EOR will calculate and remit all taxes, social securities and similar payments, on behalf of both employer and employee. The client will be invoiced in advance by the EOR company, for the total cost of the payroll.
Yes. Our clients are free to dictate the structure of the employees’ remuneration including any bonuses or commissions they wish to offer. In some countries, there is a statutory requirement to provide “bonuses”, for example in the form of Christmas or holiday allowances.
Yes. Agility EOR will calculate what pay is due upon termination of an employee, factoring in such things as any untaken leave entitlements.
We find that most of our clients are in the Tech, IT, Finance and Professional Services industries. However, we have acquired the skills, knowledge and experience to help all industries across the globe.
As a private company, we’re not beholden to shareholders or asset-shredding Private Equity targets. We aim to build long-term relationships with our clients. At Agility EOR, our approach is that we never forget that our business is all about people. Our Employer of Record solutions are tailored to each requirement, not a one-size-fits-all tech platform. We do the right thing by our clients and by the laws of each country we operate in. And we believe in openness; if we don’t feel we can offer you the best solution for a specific territory, we’ll say so.
We pride ourselves on our personable-approach so once you enter your new employees details into our dedicated platform, we’ll arrange a call with you to go through the details of the employment contract where together we can review and amend to your requirements. We liaise directly with your employee to build a rapport and obtain the necessary information to hire them compliantly, and set them up ready for their first payroll.
We never stop delivering! Even if you’re employee has been onboarded and is happily working for you and being paid each month, we’re here to partner with you whenever you or your employees need us. Even your ex-employees may need our assistance for tax documents, proof of employment requests etc… Our service never stops!