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hire in Portugal

Portugal PEO &
Employer of Record


CONTRACT LANGUAGES Portuguese / English



TIME TO HIRE 12 hours

Hire and pay talents
with Horizons in
180+ countries

Simple, compliant hiring with Horizons PEO

Hire in Portugal

Horizons ensures day-to-day guidance to help your business navigate Portuguese labor laws and regulations. Horizons also ensures payroll is processed on time, and that taxes are withheld as required.

As the Portugal Employer of Record, Horizons is responsible for employee income tax withholding, payment of payroll taxes to government tax authorities, and submission of tax returns annually.

Partnering with our Portugal PEO is the quickest and most cost-effective way to enter the Portuguese market.

Facts & Stats

1. PEO Platform

Hire in Portugal, and pay employees through our platform or app.

2. PEO Cost

Our Portugal PEO solution is the most affordable on the market.

3. Fast Time-To-Hire

Fast Portugal onboarding, hire in as little as 12 hours.

4. Compliant Contracts

We draft bilingual labor contracts, compliant with Portuguese labor law.

5. Extensive Benefits

We manage all mandatory benefits and contributions in Portugal.

6. 180+ Countries

It doesn’t stop with Portugal — we hire employees globally.

stay compliant with Portuguese labor laws

Labor Laws

It is always important to provide your employees in Portugal with a formal contract of employment, including all relevant details of employment such as salary and benefits. It should also be written in the Portuguese language and use the Euro currency.

By partnering with our Portugal PEO & Employer of Record, Horizons’ team of local experts can provide assistance for drafting strong employment contracts that are compliant with local regulations. 

Employment contract types

Probationary period

<6 months contract: 15 days

>6 months contract: 30 days

Termination notice period

During probation:
<60 days: no notice
60 to 120 days: 7 days notice
>120 days: 14 days notice

After probation:
<1 year employment: min. 15 days
1 to 5 years: min. 30 days
5 to 10 years: min. 60 days
>10 years: min. 75 days


18 days’ salary per year of service + 12 days’ salary per year of service, max. 12 months’ salary

Note: Unlawful termination may require 45 days salary per month of service

Special noteEmployer must justify to the labor bureau why employee should be hired on a limited contract vs. a permanent contract
Probationary period

Jobs with high complexity → max. 180 days (6 months)

Senior / management → max. 240 days (8 months)

Recommended: 90 days (3 months)

Termination notice period

During probation:
<60 days: no notice
60 to 120 days: 7 days notice
>120 days: 14 days notice

After probation:
<1 year employment: min. 15 days
1 to 5 years: min. 30 days
5 to 10 years: min. 60 days
>10 years: min. 75 days


12 days salary per year of service, max. 12 months of salary

Note: Unlawful termination may require 45 days salary per month of service

Risk of Misclassification

Portugal, like many other countries, treats self-employed individuals or contractors and full-time employees differently. Misclassification of contractors in Portugal may lead to fines and penalties for the offending company.

Working hours in Portugal

Normal working hours in Portugal are between the hours of 9am and 7pm, with two hours usually taken for lunch. Working hours are generally limited to 40 hours per week and eight hours per day. Overtime rates should be paid for any time beyond this.

Hire compliantly in Portugal without a local entity

Hire in 12 hours with the Portugal employment experts — no subsidiary required.

Portugal national holidays 2024

Employees in Portugal are entitled to nine public holidays, which are recognized nationally:

There are also various regionally recognized holidays, so it is important that you understand the local customs wherever you are operating. The following is an expanded list of the most common holidays celebrated throughout the country:

Portugal has a range of national public holidays that are celebrated annually. In 2024 these holidays are:

DateHoliday name
1 Jan, 2024New Year’s Day
29 Mar, 2024Good Friday
31 Mar, 2024Easter Sunday
25 Apr, 2024Liberty Day
1 May, 2024Labor Day / May Day
30 May, 2024Corpus Christi
10 Jun, 2024Portugal Day
15 Aug, 2024Assumption of Mary
5 Oct, 2024Republic Day
1 Nov, 2024All Saints’ Day
1 Dec, 2024Restoration of Independence
8 Dec, 2024Feast of the Immaculate Conception
25 Dec, 2024Christmas Day

Annual leave in Portugal

Employees in Portugal are entitled to at least 22 days of paid vacation leave. For the first year of employment, there is a lower allowance of 20 days. Up to five unused days can be carried over until April of the next year. Employers cannot offer pay to forego vacation days, so it is important that you always offer all the days to your employees.

Sick leave in Portugal

Employees in Portugal are entitled to sick leave benefits when absent from work through sickness. They are covered for a maximum of 1,095 days (approximately three years), at a rate of between 55% and 75% of normal pay. These benefits are paid by the government, not employers.

Maternity leave in Portugal

Mothers in Portugal can take 120 days of leave, and must take a minimum of 30 days before their child’s birth, and six weeks after birth. They are entitled to normal pay during this time. If they wish, they can also choose to take 150 days of maternity leave, but at 80% of normal pay.

Fathers can take 10 days of paid leave, which must be taken within 30 days of their child’s birth, and a minimum of five must be taken together.

Termination & severance in Portugal

Employees in Portugal who are not in a probation period are entitled to notice of termination. The length of notice varies based on length of time with their employer:

  • Under one year of employment = 15 days of notice
  • Between one and five years = 30 days of notice
  • Between five and ten years = 60 days of notice
  • Over ten years = 75 days of notice

In some cases, employees may be entitled to severance upon termination. The usual rate is roughly 20 days of pay for every year of employment. 

Navigating employee terminations and handling severance packages can be complicated for companies expanding overseas for the first time. Horizons’ Portugal PEO can mitigate risk for foreign companies and provide guidance through this process.  

Taxation in Portugal

In Portugal, employees and employers are required to contribute to social benefit funds. For employees, the contributions equal roughly 10% to 15% of salary, and for employers, the contributions are roughly 25%.

The progressive income tax rates are between 14.5% and 48% of salary, depending on income. The corporate tax rate in Portugal is 21%.

Health insurance

Healthcare in Portugal is nationalized, so there is no need for employers to offer private health insurance. However, some employers may choose to offer insurance as part of their benefits packages.

hassle-free Portuguese compensation & benefits

Compensation & Benefits

Portugal compensation laws

The minimum wage in Portugal is €820 per month as of 2024. Most employees are also entitled to two annual bonuses, usually paid in June and December, that equal one month’s salary.

Minimum Wage Comparison Chart(Per Month in USD)
Switzerland (Geneva)$4,000
13th and 14th month salary in Portugal

An annual ‘13th- and 14th. month’ and bonus payment is mandatory in portuga and therefore legally required. The payment is usually given around Christmas. and mid of the year

Picture of Expert Knowledge
Expert Knowledge

Robert McCall,
Sales Manager (Austin)

“Many foreign companies are not aware about the fact, that the 13th and 14th salaries to be paid are mandatory. Make sure you understand the requirements to avoid misunderstandings in salary negotiations.”

Benefit management in Portugal

Setting up your Portuguese benefits system can be a confusing process if you are not familiar with the complex labor laws, language, and cultural differences, so it is common to encounter delays.

Horizons can help you avoid this complex part of your Portuguese expansion, saving you time and money and simplifying the entire process. Our team will offer advice and outsourcing of your benefit system setup and management, freeing you focus on the rest of your expansion.

Picture of Expert Knowledge
Expert Knowledge

Damla Martinez,
Senior Account Executive (Valencia)

„Portugal is not only a popular remote work destination, but has recently emerged as a recognised tech hub in Europe. As global tech companies consolidate their marketpresence, highly qualified professionals are in high demand. As a result, income levels have started to rise and candidates focus increasingly on competitive benefits.”

Work Visa and Tech Visa Support in Portugal

Horizons provides full support for companies in Portugal wishing to facilitate employee hire through work visas or Tech Visas. As a certified company for Tech Visas, Horizons can enable companies to bring foreign tech talent into Portugal through a fast-tracked and cost-efficient process. 

Read more about it here

Hire in Portugal in 12h
without a subsidiary

We’re the leaders for employment and HR solutions in Portugal and ensure a truly seamless local hiring experience.


A Portugal PEO and a Portugal EOR are two types of companies which specialize in providing human resources services to businesses in Portugal.

The main difference between a Portugal PEO and a Portugal EOR is in the scope of their services.

Portugal PEOs provide a full range of HR services, including payroll, benefits administration, and employee recruiting—all under one roof as a co-employer. Engaging a Portugal PEO is essentially outsourcing your HR duties in Portugal.

Portugal EORs actually take over as the legal employer of your employees based abroad. Portugal EORs become responsible for labor compliance for your employees in Portugal.

At Horizons, we offer both PEO and EOR services in Portugal. Get in touch now and let us know what service you are seeking.

A PEO in Portugal can feasibly hire both local and foreign nationals to work in Portugal.

However, the ability of Horizons to sponsor your foreign national employee in Portugal may be limited due to visa quotas practiced in many countries.

Contact us with your requirements and our Global Mobility team with review the case and get back to you within 2 business days.

In most cases, Horizons’ Portugal PEO can hire & onboard your employee within 12 hours. The actual start date of the employee will depend on their notice period obligation to their previous employer as well as any relevant hiring rules in Portugal.

It is possible to get a work visa in Portugal. Horizons’ Global Mobility team is a dedicated team of work visa experts. They assess the details of each case to determine feasibility and costs before Horizons applies for the work visa on behalf of your employee. If the Global Mobility team determines that your case is feasible, the process is smooth and transparent. Visa spots in Portugal are limited, however—get started today to secure your employees’ visa spot.