Employer of Record in Portugal

Employer of record in Portugal (EOR) involves hiring and registering workers. Our lawyers in Portugal are at your disposal with this type of service as soon as you access our free case evaluation page.

Quick facts
What is the employer of record in Portugal (PEO)?	A service that helps you legally hire and manage workers without the need to establish a separate business entity.
Elements in the employment contract	– professional category/type of work of the employee, – employee's working hours, – place of work, – terms of renumeration, etc.
Probationary period in Portugal	– 30 days (for employment contracts longer than 6 months); – 15 days (for employment contracts less than 6 months); – 90 days (for permanent contracts)
Income tax rates in Portugal	These taxes are progressive, ranging from 12.5% to 48%, with higher rates for higher incomes
Social security contributions	11% for employees and 23.75% for employers
Retirement age in Portugal	66 years and nine months (2026)
Annual leave	Statutory 22 working days and bank holidays, but can be negotiated for more
Statutory employee benefits	– bonuses on Christmas and other holidays, – basic healthcare insurance, – wage guarantee fund, – workers' compensation insurance
Responsibilities of a Portuguese PEO	– finalizing employment contracts, – local payroll processing, – payment of related taxes, – issuing payslips to employees, – distributing salaries to bank accounts, etc.
Remote employment operations (YES/NO)	YES, you can contact our Portuguese lawyers for this option.
Working hours	8 hours a day/ 40 hours per week
Sick leave payment	Between 55% – 75% of employee's pay, based on the duration of illness
End of employment	Employers can only fire employees for specific reasons, and during a probation period, either party can end the job without a reason. Our attorneys in Portugal can assist with the end of employment.
Why choose employer of record in Portugal	– assuring compliance with labor laws and regulations, – simplified hiring, – quick setup, – cost-efficiency, etc.
Additional services provided by our team	Our law firm in Portugal can also help with immigration issues, company incorporation, debt collection, legal consultacy, etc.

What can I do with EOR services in Portugal?

Hire staff for your business without setting up a legal entity in Portugal.

How is EOR known in Portugal?

Not a specific name, but EOR.

Is EOR legally recognized in Portugal?

Yes.

How are workers hired through EOR in Portugal?

Respecting the Labor Law in Portugal.

What does EOR in Portugal involve?

staff onboarding for a company,
employment contract registration with the Ministry of Labor in Portugal,
payroll & monthly salary distribution,
salary tax payment and many more.

IMPORTANT NOTES:

EOR respects the local employment laws & regulations,
Companies can hire employees from anywhere in the world through EOR,
Onboarding staff through EOR in Portugal might take around 5-10 days.

What are the main conditions for employment in Portugal?

40-hour working week,
Minimum wage updated annually,
14 salaries/year,
Probation period of 90 days,
22 business days as annual leave,
Allowances,
Work accident insurance,
Dismissal protection, etc.

Can I ask for visa & residence permit support through EOR in Portugal?

Yes, when hiring foreign staff in the firm.

Is an EOR specialist available for company issues?

Yes, an EOR specialist in Portugal can handle various employment-related matters that may arise within a company.

What is the social contribution paid by employers in Portugal?

23.75%.

Are Collective Bargaining Agreements available in Portugal?

Yes.

Is overtime paid in Portugal?

Yes.

What is the Non-Habitual Resident (NHR) regime in Portugal?

The NHR regime closed to new applicants on 1 January 2024. Its successor, the IFICI regime (“NHR 2.0”), taxes qualifying employment and self-employment income at a flat 20% for eligible expatriates, for 10 years.

Is EOR advantageous in Portugal?

hiring staff through EOR in Portugal is a fast process,
the costs of EOR in Portugal are more affordable compared to those of hiring employees in a traditional company,
all regulations are respected when dealing with EOR, etc.

Is EOR in Portugal an optimal solution for entrepreneurs?

Yes, because complex onboarding is time-consuming and thus, through EOR in Portugal, hiring staff is faster. There is no need to open a company in Portugal, which simplifies the entire process.

Would you like to find out more about EOR in Portugal? You may solicit our legal advice and contact our law firm in Portugal for in-depth guidance. Get your offers today!