Portugal PEO & EOR services
Portugal offers a diverse range of PEO/EOR employment opportunities, attracting both domestic and international talent to contribute to its thriving workforce.
PEO/EOR employment termination and notice period in Portugal
There is no "at-will" termination in Portugal. In order to terminate the employment contract of an employee, sufficient reasoning must be provided.
Compared to many other European countries, the notice period in Portugal is short. The Portuguese PEO/EOR employer must work with the following minimum notice periods, which vary in accordance with each employee’s seniority:
| Length of employment | Notice Period Portugal |
| < 1 year | 15 days |
| 1 year to 5 years | 30 days |
| 5 years to 10 years | 60 days |
| > 10 years | 75 days |
Fixed-term contracts can be terminated automatically on their expiry date or upon completion of specified tasks.
Portugal PEO/EOR employment: Salary, employer costs and working hours
In 2022, the average annual wage in Portugal was $21,876.06 This is lower than the average annual wage in the United States: $56,316.
As a PEO/EOR employer in Portugal, the actual employer costs are around 26.5% higher than the gross annual salary. Based on a $21,876.06 annual salary, the employment costs would be $27,673.22
See all average salaries in Europe in 2024
Business working hours in Portugal may be slightly different from what you are used to. A typical working day in Portugal starts at 9 am until 1 pm with a two-hour break for lunch and then resumes at 3 pm until 7 pm.
Paid vacation leave and public holidays in Portugal PEO/EOR employment
All employees in Portugal are entitled to a period of paid annual leave of at least 22 working days per calendar year. The right to leave is acquired by entering into a contract of employment and takes effect as of 1 January of each calendar year.
- New Year's Day – 1 January
- Good Friday - 29 March
- Easter Sunday - 31 March
- Liberation Day– 25 April
- Labour Day – 1 May
- Corpus Christi – 30 May
- National Day – 10 June
- Assumption Day – 15 August
- Republic Day– 5 October
- All Saints' Day – 1 November
- Restoration of Independence – 1 December
- Immaculate Conception – 8 December
- Christmas Day – 25 December
Social Security tax for Portugal PEO/EOR employers
What are the primary social security contribution rates for Portugal PEO/EOR employers?
Portuguese employers must, just like other employers in European countries, pay social contribution taxes. With 23.75%, the social security (employer) tax in Portugal is higher than the EU average.
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*Industrial injury insurance is calculated based on the type of industry, number of employees, and the used insurance company.
Also important: Portugal has 14 salaries, 12 months, holidays, and Christmas allowances.
Employee Income Tax:
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To learn more about the social security tax in Europe, we invite you to read this article on Social Security Tax Rates for Employers Across Europe.
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Europe is home to a diverse range of countries, each with its unique employment characteristics. These reflect the diverse economic and cultural landscapes across the continent.
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Contact us
Get in touch with our team of experts to identify the best PEO and EOR solutions for your needs in Portugal today. Our HR Outsourcing services provide you with the right helping hand to enable you to grow.
Monique Ramondt-Sanders
CCO & VP of HR Outsourcing