Portugal

Employment

Written employment contracts are not required by law but are considered the most common practice. Although it is not required to have it in writing, the employer and employee must agree on certain employment terms and conditions.

Payroll

Salaries are paid on monthly basis for work between the first and last day of the month, paydays are usually between the 10th and 20th of the following month.

HR & Labor

Working Hours: 8 hours a day and 40 hours a week is considered full time employment. The employee is eligible for minimum 1 hour of break and maximum 2 hours of break so the employee does not work more than 5 consecutive hours.
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Minimum Age: Minimum working age in Portugal is 16. An employee at the age of 18 can start working without an employment contract.

Immigration

If the employee is a non-EU citizen, the employer must submit a formal request for an employment offer at the Employment Center. This must be done prior to entering Portugal.

Minimum Wage

The minimum wage is 589 EUR.

Public Holidays

August 15: Assumption Day
October 05: Republic Day
November 01: All Saints Day
December 01: Restoration of Independence
December 08: Immaculate Conception Day
December 25: Christmas Day
December 31: New Years Eve

January 01: New Years Day
March 30: Good Friday
April 01: Easter Sunday
April 25: Liberation Day
May 01: Labor Day
May 31: Corpus Christi
June 10: National Day
August 15: Assumption Day
October 05: Republic Day
November 01: All Saints Day
December 01: Restoration of Independence
December 08: Immaculate Conception Day
December 25: Christmas Day

Pension Fund

Both employees and employers are charged flat rate for social security taxes and pension. There is no salary ceiling.

Severance Payments

Employee is entitled to severance payment which is equal to the amount of 20 days of regular wages.

Termination Procedure

There is no official termination notice period. Termination is active as soon as the employer officially announces his/her decision to the employee.

Sick Days

Employees are allowed to take total of 1095 paid sick days. Sick pay is paid by Social Security and it varies between 55% and 75% depending on the length of illness.

Vacation Days

Employees are entitled to 22 working days per calendar year.

Expat Benefits

Expats have their income tax automatically deducted from the salary between 10.5% to 42% based on their worldwide income. All other benefits offered to expats vary from one company to another.

VAT

There are 3 standard/general VAT rates in Portugal – 23% in Continental Portugal, in Azores it is 18% and in Madeira it is 22%