Social security
in Portugal.

SALARY PAYMENT IN Euro (EUR, €)

CONTRACT LANGUAGES Portuguese / English

PAYROLL TAX 26.50%

PAYROLL CYCLE Monthly

TIME TO HIRE 12 hours
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Horizons-owned entity with local country experts in Lisbon.

We offer fair, scalable, and transparent pricing on Portugal PEO service. Contact us for a cost breakdown

End service in Portugal with no additional penalties or fees.

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Portugal

Social security in Portugal – Overview

Both employers and employees must pay social security contributions in Portugal. Employer social security costs are middling in Portugal compared to its neighbors, and the benefits provided to Portuguese citizens is considered good.

What does the social security system in Portugal cover?

Portugal’s social security system covers several key benefits for employees, including:

Healthcare
Parental leave
Sick pay
Pregnancy pay
Family benefits
Unemployment

What are the mandatory contributions for employees to social security in Portugal?

Employees must contribute 11% of gross salaries to social security in Portugal.

What are the mandatory contributions for employers to social security in Portugal?

Employers must contribute a portion of employees’ salaries (23.75%) to the social security system of Portugal.

How do mandatory contributions compare to the surrounding countries?

The social security contribution for employers is much lower in Portugal (23.75%) compared to neighboring Spain (32.1%). Portugal shares a maritime border with Morocco, who requires up to a 21.09% employer contribution to social security.

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

How much do employers need to contribute to social security in Portugal?

Employers must contribute 23.75% of monthly employee salary to social security.

What situations does social security cover for employees in Portugal?

Portugal is a developed western-European nation. Portugal’s social security system covers several key benefits for employees, including:

Healthcare
Parental leave
Sick pay
Pregnancy pay
Family benefits
Unemployment
Public Pension

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