Portugal
Protect your workforce and your business in Portugal with Lerio's trusted HR expertise.
Hiring in Portugal at a glance
€ / EUR
40 hours / week
13 holidays / year
The most common payment frequency is monthly.
By law, payments can also be made bimonthly.
Portuguese
10M
€820 / month
1st Jan – 31st Dec
Employment Tax
- Employee tax: 25.5% – 64%
- Social insurance: 11%
- Include sick leave, birth and adoption, disability, retirement, unemployment, death and work-related accidents or illness
- Solidarity tax: 2.5% for those earning more than €80 882 Increases to 5% for earnings above €250 000
- Social insurance: 23.75% (22.3% for nonprofit companies)
- Labour Accident Insurance: 1.75%
- Wage Guarantee Fund: 1%
Income Tax
| Taxable Income | Tax Rate ($) | ||
| €0 - €7 703 | 13.25% | ||
| €7 703 - €11 623 | 18% | ||
| €11 623 - €16 472 | 23% | ||
| €16 472 - €21 321 | 26% | ||
| €21 321 - €27 146 | 32.75% | ||
| €27 146 - €39 791 | 37% | ||
| €39 791 - €51 997 | 43.5% | ||
| €51 997 - €81 199 | 45% | ||
| €81 199. + | 48% |
Employer of Record
in Portugal
In the role of the authorized employer, an Employer of Record holds accountability for upholding compliance with Australian employment laws. This entails responsibilities such as managing payroll systems, ensuring tax conformity, and issuing employment agreements in line with labor mandates.
Employer of
Record Process
- Company
- Full legal name of prospective employee
- Employee contact details
- Employee nationality and residency status
- Proposed start date
- Right to work status
- Job title
- Working hours
- Job description and deliverables
- Salary information
- Benefit information
- Intellectual property and confidentiality agreement
- Terms of termination (e.g. notice period)
- Probation period
- EMployee bank details
- All other company-specific requirements (e.g. non-compete, intellectual property clauses, etc.)
Finds their perfect hire and provides Lerio with all the information required to prepare an employment agreement. For Australia, that includes:
- Lerio
Prepares the employment agreement and shares with the prospective employee for signing. Requests all additional documents such as identity documents, proof of right to work in Australia, tax information, etc.
- Employee
Signs employment agreement and submits required documents.
Umbrella Process
- Employee
Now no longer a prospective employee but simply an official employee, who ensures to keep Lerio updated on any personal information changes.
- Lerio
Onboards employee to payroll and benefit programs to get started ensuring that salaries are paid every month and benefits are administered. Tax contributions and benefit fees are paid and payslips are provided to the employee.
Lerio provides an invoice and statement to the company for each month.
- Company
Receives monthly invoice, reviews and processes. Provides information on whether anything has changed in their relationship with the employee, the employee’s role or the company that will have an effect on the upcoming payroll run.
Employee Benefits
- Wage guarantee fund
- Health Insurance
- Workers compensation insurance
- Professional training
Non-mandatory
Employee Benefits
- Public Transport
- Extended health
- Extended life insurance
- Extended pension
- Meal vouchers
Employee Rights
- A safe and healthy work environment free from risk
- Protection from bullying, discrimination and sexual harassment
- Fair and just dismissals
- Protection of personal information
- Access to information such as company policies and codes of conducts
- Payslips showing all deductions and income
- Home-office allowance
- Equal and equitable opportunities and treatment
Leave
22 days. 20 days in your first year can be used after 6 months.
Up to 1 095 days, paid in varying rates through social insurance
First 30 days: 55% of standard salary
31 – 90 days: 60% of standard salary
91 – 365 days: 70% of standard salary
366 days + : 75 % of standard salary
55% of the average daily earnings for the first 30 days
60% from the 31st day until the 90th
70% from the 91st day until the 365th
75% from then on
30 days fully paid by social insurance before birth (optional) and 42 days after birth (mandatory). Multiple births allow an extra 30 days.
Breastfeeding once returned to work: two 1 hour breaks per day.
28 days mandatory leave (Consecutive or not) in the 42 days after birth. Minimum of 7 days need to be taken prior to the due date and 7 straight after birth or adoption. Fully paid through social insurance.
Additional 3 days during pregnancy or adoption process for appointments.
120 – 150 days: Shared between parents.
In the case of a stillbirth, 120 days of leave is still allocated.
3 days
Up to 30 days to care for children under 12 and 15 for children over 12
Depends on event but up to 20 days
Up to 6 months to care for a child with a disability, chronic illness or oncological illness.
30 days if their child had a baby and is under 16 years old
Less than 1 year: 15 days
1 – 5 years: 30 days
5 – 10 years: 60 days
10+ : 75 days
Probation
Typically 4 months but can be as high as 8 months for executive roles.
What is a work permit in Portugal?
Work permits are official documents from a country’s government that qualifies an individual to legally work and live in the country. However, this is a broad term and many countries require more than one official document and may use different terms to refer to these documents – Portugal is not one of those. To legally work and live in Portugal, one needs to have a permanent residence permit after acquiring a residence work visa.
Who needs a work permit in Portugal?
Portugal requires everyone who is not a citizen or a permanent resident to go through a process of obtaining legal right to work, with certain exceptions:
EU member state citizens: All EU citizens have the right to work in another EU member state. They may however need to register their presence in the country (if staying for three months or less) or register your residence (staying for longer than three months). Portgual is an EU member state and therefore EU member state citizens don’t need to obtain any documents to prove their right to work and live in Portugal.
Iceland, Liechtenstein and Norway: As members of the EEA (European Economic Area), Iceland, Liechtenstein and Norway citizens have the same rights as any EU member state citizen to work and live in Portugal. They are required to follow the same process as EU citizens as described above.
Switzerland: Though not a part of the EU or the EEA, the EU has an agreement with the Swiss government that allows a mutual freedom of movement. This affords Swiss nationals the same rights as any EU citizen to work and live in Portugal. They are required to follow the same process as EU citizens as described above.
Therefore, anybody who is not a citizen of an EU member state, Iceland, Liechtenstein, Norway or Switzerland needs to go through the process to obtain a legal right to work.
*UK citizens: Please see here to understand the rights of UK citizens who settled in Portugal prior to Brexit.
How long does it take to get a work permit in Portugal?
The Portuguese Immigration and Borders Service doesn’t offer an indication of processing times however the work visa is valid for three to four months and would be enough time to secure a work permit.
Types of work visas in Portugal
Skilled workers residency visa
Eligibility
- Offer of employment
- Experience and qualifications in a eligible field (science, healthcare, technology and others depending on the role)
- Experience and qualifications in a senior or managerial role where there’s a skills shortage locally
- Proficiency in Portuguese, Spanish, English and/or French in line with the role requirements
Highly-skilled workers residency visa
Eligibility
- Offer of employment
- Remarkable skills in a specialised field
- Earns at least 1.5 times the national average annual salary in Portugal
- Proficiency in Portuguese, Spanish, English and/or French in line with the role requirements
“Tech” residency visa
Eligibility
- Minimum bachelor’s degree
- If less education, minimum 5 years of relevant experience
- Offer of employment with a company who has a Tech Visa Certificate
- Salary of eat least 2.5 times the national average salary in Portugal
- Proficiency in Portuguese, Spanish, English and/or French in line with the role requirements
EU Blue Card
The EU blue card is a combined work and residency permit available to highly skilled individuals. It allows holders access to live and work in 25 out of the 27 EU member states (Denmark and Ireland not included).
Eligibility
- Bachelors or higher degree, some states accept 5 years of relevant experience without a degree
- Must be a salaried employee, not self-employed
- Annual salary must be at least 1.5 times the average national income of the state applying for
- Offer of employment
- Health insurance
Country-specific requirements and application processes can be seen here.
Other visas
In addition, visa are available for entrepreneurs, graduates and short-term projects
Application process in Portugal
Institute for Employment and Professional Training clearance
- Employers have to post their jobs on the IEFP’s online portal to allow Portugese citizens to apply for the role
- When an offer is made to a foreign national, employer needs to get a confirmation from the IEFP that the necessity for hiring a foreign national is there
Apply for a visa
- Start the application on the visa online portal by completing the required fields and uploading documents
- Make an appointment to visit the local consulate or embassy. This can either be done through the online portal or by directly emailing or calling.
- Attend the appointment and submit documentation and biometric information
- Applicant will be notified about the outcome
- If approved, visa can either be collected or be delivered
Applying for a residence permit
- After arriving, book an appointment with the Portuguese Immigration and Border Services to apply for the permanent residence work permit
- Go to the appointment with the required documentation
What documents are required to apply for a work permit in Portugal?
Employer hiring clearance
Submitted by the employer to the Institute for Employment and Professional Training
- The employment contract
- Company tax statements
- Proof of having registered with Social Security
- Proof that an EU/EEA/Swiss citizen could not have filled the position
Work residency visa
- A valid passport
- The employment contract
- Clearance from the Institute for Employment and Professional Training from the employer
- Recent passport photographs.
- Proof of financial ability to fund your trip/proof that the employer is funding it
- Travel and flight details.
- Proof of accommodation -rental contract or hotel reservations.
- Criminal record from your home country or country of residence (for the last 12 months).
- Permission for SEF to check your criminal records.
- Proof of health insurance or valid travel insurance covering your stay in Portugal
Permanent residency application
- Valid passport.
- Two recent identity pictures in line with Portugal visa photo requirements.
- Application form
- Valid residence visa
- Evidence of sufficient financial means.
- Proof of accommodation for your stay in Portugal.
- Health insurance or supporting evidence he/she is covered by the National Health Service.
- Police clearance
- If applicable, marriage certificates
- If applicable, divorce certificates
- Employment contract.
- Proof of registration with the tax administration, when done
- Proof of social security registration, when done
- Proof of experience and qualifications in relation to the role
- Job description (not essential but advisable)
- Overall,it’s advisable to take the same documents for this as you did for your visa
Contact Us
If you have questions - feel free to ask them. We are happy to help our clients.