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13th month pay
in Portugal.

SALARY PAYMENT IN Euro (EUR, €)

CONTRACT LANGUAGES Portuguese / English

PAYROLL TAX 26.50%

PAYROLL CYCLE Monthly

TIME TO HIRE 12 hours

Is there a 13th month pay in Portugal?

Yes, employees in Portugal are legally entitled to two bonuses each year: one in summer and one at Christmas. This means employees receive 14 payments each year, rather than 12.

How is the 13th month pay calculated in Portugal?

Generally, an employee’s annual salary will simply be divided by 14 and paid in individual installments, as opposed to simply making one payment each calendar month.

When is the 13th month salary paid in Portugal?

In Portugal, the 13th and 14th-month salaries must be paid in summer and mid-December, respectively.

Does the 13th month salary amount to any extra payment by the employer?

Normally when an employer makes an offer, they will divide their budget by 14 (12 calendar months, + the 13th and 14th month salaries); the 13th month salary in Portugal is normally distributed in June, and the 14th month is normally distributed in December

Is the 13th month salary taxable in Portugal?

Yes, the 13th and 14th month salary payments are taxable as normal income in Portugal.

Hiring in Portugal, Made Easy

Your business can easily hire employees in Portugal without opening a local entity. We handle local employment law, complex tax regulations, and international payroll in 180+ countries worldwide. All you need to do is focus on your business.

FAQs

The 13th and 14th months are required by law in Portugal.

Yes, there are 14 months of pay in Portugal. This is similar to Portugal’s neighbor, Spain.
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