Table of Contents
Introduction
Key Considerations for Employing in Portugal
Benefits
Employment Contracts
Onboarding
Leaves
Payroll & Taxes
Termination Process
Invoice Schedule
Get Started with Omnipresent
1. Introduction
Hiring employees in Portugal requires compliance with labor laws, payroll regulations, and mandatory benefits. Omnipresent’s Employer of Record (EOR) service ensures that businesses meet all local employment obligations in Portugal.
2. Key Considerations for Employing in Portugal
Currency: Euro (€)
Language: Portuguese
Employer Costs: Average (~26-30% of salary)
Termination Complexity: Moderate
Onboarding Timeline: Approximately 15-20 calendar days
Payroll Frequency: Monthly
3. Benefits
Types of Benefits Offered
Mandatory Benefits: Public healthcare, pension contributions, unemployment insurance, workers’ compensation.
Supplementary Benefits: Private healthcare, additional pension schemes, life & disability insurance.
Healthcare
Public healthcare (Serviço Nacional de Saúde - SNS) is mandatory and funded through social security contributions.
Private health insurance is commonly provided as a supplementary benefit.
Retirement
State Pension (Segurança Social): Mandatory contributions shared between employer and employee.
Private pension plans are optional but increasingly offered.
4. Employment Contracts
Contract Types
Indefinite-term contracts (Contrato sem termo)
Fixed-term contracts (Contrato a termo, max 3 years)
Part-time contracts
Requirements
Written employment contracts are required.
Language: Portuguese (bilingual contracts are recommended).
Signature Requirements: Digital or wet ink.
Backdating: Not permitted under Omnipresent’s policy.
Probation Period
Maximum probation period:
90 days for general employees
180 days for managerial positions
240 days for executive roles
Employers can terminate employment with shorter notice during probation.
Contract Customisation
Optional clauses for customization, such as extra-legal sick days or additional vacation days.
Some elements cannot be customized due to compliance risks (e.g., restrictive covenants, statutory notice periods).
5. Onboarding
Timeline
The onboarding process in Portugal typically takes 15-20 calendar days, including:
Platform Setup
Right-to-Work Check
Employment Contract Processing
Benefits & Payroll Enrollment
Registration & Approvals
Employers must register employees with Portuguese Social Security (Segurança Social).
Immigration & Visas
Omnipresent can support visa sponsorship.
EU citizens do not require work permits.
Right-to-Work Verification
Employers must verify work authorization before employment begins.
Employee Transfers from Another EOR
Transfers require compliance assessment and must be reviewed case-by-case.
6. Leaves
Leave Entitlements
Annual Leave: Minimum 22 working days.
Annual Leave Carryover: Limited to the following year if not taken.
Maternity & Paternity Leave
Maternity Leave: 120-150 days, with state-funded compensation.
Paternity Leave: 20 working days (mandatory, taken within 6 weeks of birth).
Public Holidays
Portugal has 13 mandatory public holidays, plus regional holidays in some areas.
Sick Leave
Paid sick leave for up to 1,095 days.
Social Security funds the payment after the first three days.
Compensation rate:
Days 1-3: Unpaid (unless employer opts to pay).
Days 4-30: 55% of salary.
Days 31-90: 60% of salary.
Day 91+: 70-75% of salary.
7. Payroll & Taxes
Payroll Cycle
Frequency: Monthly
Cut-off Date: 6th of each month*
*Omnipresent supports both 6th and 15th cut-off dates in this country depending on our local partner. While we prioritise local partners with a later cut-off date, local partners with an earlier cut-off date might be chosen because of visa sponsorship ability and other factors. If you would like to switch to a local partner with a later cut-off date, feel free to reach out to your Customer Success Manager or our Support team at help@omnipresent.com.
Payment Date: Last working day of the month.
Compensation
Minimum wage (2024): €820 per month.
Christmas and vacation bonuses:
Employees are entitled to 14 payments per year (12 monthly salaries + 2 bonuses).
These bonuses can be prorated across 12 months.
Standard Work Schedule
40 hours per week, Monday-Friday.
Maximum overtime: Limited by law and collective agreements.
Time tracking is legally required.
Employer Costs
Estimated 26-30% of salary. Use the OmniCalculator for a detailed breakdown.
8. Termination Process
Notice Period
Minimum statutory notice (depends on tenure):
0-6 months: 15 days
6 months - 2 years: 30 days
2+ years: 60 days
Termination Grounds
Strict labor protections apply.
Valid termination reasons: Misconduct, redundancy, performance-based dismissal.
Severance Pay
Objective dismissal: 12 days’ salary per year of service.
Unfair dismissal: Compensation may be required (court ruling dependent).
9. Invoice Schedule
Initial Fees
Setup Fees: Due upon signing Terms.
Deposit: Payable when the local employment contract is ready for signature.
First Salary Prepayment: Invoiced on the first day of employment.
Ongoing Monthly Payments
Labour costs invoiced monthly in arrears after payroll calculations.
Each invoice includes:
Monthly service fee
Deposit insurance (if applicable)
FX fee (if applicable)
10. Get Started with Omnipresent
We simplify international hiring, legal compliance, payroll, benefits, and more. Contact us to start your journey towards hassle-free global employment.