Country file

What it costs an employer to hire in Portugal

An employer in Portugal pays €86,625 on a gross salary of €60,000. That is 44.4% more than the salary.

At €120,000 the employer adds 44.4%, because the contributions are largely uncapped.

This figure is the statutory employer cost for Portugal only; it does not include an employer of record's own service fee, which providers price separately. Which countries a given provider actually covers is confirmed provider by provider, not implied by its appearing on this page.

Every contribution line shows the source used and the date checked. We prefer primary statutory sources. When a statutory page could not be reliably retrieved, we label the line as secondary and name the national payroll reference used. The figures are for 2026.

A mid salary of €60,000

Employer-side statutory contributions on a gross base salary of €60,000 a year. The ceiling is the statutory maximum for that line; the base charged is the part of the contribution base that actually falls inside it, which is why the two columns differ.
ContributionRateCeilingBase chargedAmountSource
Social Security, general scheme employer contribution (TSU)23.75%no ceiling€70,000€16,625source statutory checked 2026-08-21
Statutory employer contributions€16,625

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Contributions on the statutory extra pay are included: the extra months are part of the contribution base on this page. source statutory checked 2026-08-21

Costs included in this modeled scenario. Coverage, pay-period assumptions and excluded items are stated on this page; this is not a complete payroll quote.
Twelve-month base salary€60,000
Included employer contributions€16,625
Mandatory extra pay (2 months)€10,000
Salary plus modeled employer costs€86,625
Added on top of the salary44.4%

Published EOR fee on top of this employer cost

Published EOR fees in US dollars, ordered by fee: the four lowest and the two most-read providers. Not converted and not added to the local figures; all fourteen are on the provider page.
ProviderPublished fee, monthlyYearCheckedProvider site
Native Teams$99, starting$1,1882026-10-12See Native Teams EOR pricing
RemoFirst$199, starting$2,3882026-10-12See RemoFirst EOR pricing
Payoneer Workforce Management (formerly Skuad)$199, starting$2,3882026-10-12See Payoneer Workforce Management (formerly Skuad) EOR pricing
RemotePeople (formerly Horizons)$199, starting$2,3882026-10-12See RemotePeople (formerly Horizons) EOR pricing
Deel$599, list$7,1882026-10-12See Deel EOR pricing
Remote$699, list$8,3882026-10-12See Remote EOR pricing

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A senior salary of €120,000

Employer-side statutory contributions on a gross base salary of €120,000 a year. The ceiling is the statutory maximum for that line; the base charged is the part of the contribution base that actually falls inside it, which is why the two columns differ.
ContributionRateCeilingBase chargedAmountSource
Social Security, general scheme employer contribution (TSU)23.75%no ceiling€140,000€33,250source statutory checked 2026-08-21
Statutory employer contributions€33,250

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Contributions on the statutory extra pay are included: the extra months are part of the contribution base on this page. source statutory checked 2026-08-21

Costs included in this modeled scenario. Coverage, pay-period assumptions and excluded items are stated on this page; this is not a complete payroll quote.
Twelve-month base salary€120,000
Included employer contributions€33,250
Mandatory extra pay (2 months)€20,000
Salary plus modeled employer costs€173,250
Added on top of the salary44.4%

Why the percentage does not change

What the employer adds on top of the salary in Portugal, by salaryThe employer adds 44.4% on top of the salary at every salary in Portugal.0%15%30%45%60%€0€25,000€50,000€75,000€100,000€125,000€150,000mid €60,000senior €120,000Gross base salary a yearAdded on top of the salary
What the employer adds on top of the salary in Portugal, at every salary from nothing to €150,000. No employer contribution in Portugal has a ceiling, a band floor or a wage above which it stops, so the line is flat: the employer adds the same percentage on a junior salary and on a senior one.

The formula

twelve-month base salary = the input for the base-salary option = annual gross divided by the modeled salary-payment factor for the total option modeled additional salary = statutory extra pay + separately modeled salary premiums percentage contribution = rate x the covered base within that line's bands monthly fixed contribution = monthly amount x covered months salary plus modeled employer costs = base salary + additional salary + included contributions + modeled severance accrual

Each contribution uses its own documented earnings base and limits. The generic annual percentage formula is not a universal payroll rule. Brazil's worked assumptions include a thirteenth salary and a separate one-third vacation premium, with ordinary contributions and FGTS on covered remuneration. The total-gross option includes both salary additions. The Philippines model calculates twelve monthly capped contributions and fixed EC only for its supported constant high-pay scenario. Lower or irregular pay requires monthly payroll; no unsupported estimate is shown.

Time off, extra pay and leaving

Statutory paid leave22 days
Public holidays13
Mandatory extra pay2 months
Minimum employer notice2.14 weeks

22 working days minimum under Article 238 of the Labour Code, plus 13 public holidays on the mainland.

A holiday subsidy and a Christmas subsidy, each one month's base pay, are both mandatory under the Labour Code.

Compensation on collective dismissal or abolition of the post is 12 days of base pay plus seniority allowances per full year of service, with the daily rate capped at twenty times the minimum wage and the total at twelve months' pay or 240 times the minimum wage (Article 366, as amended by Law 69/2013).

A statutory extra month is pay, not a bonus, and a quoted annual salary can already contain it. Which reading the law uses, country by country, is set out here; the calculator asks which one you have before it adds anything.

What the percentage hides

The 23.75% employer rate is uncapped and applies to the full salary, so the burden is identical for a junior hire and a senior one.

The FCT and FGCT funds, formerly 0.925% and 0.075% of base pay, were suspended in May 2023 and ended by Decree-Law 115/2023 from 1 January 2024. They are not a current cost.

Work-accident insurance must be bought from a private insurer. The premium is risk and insurer specific rather than a statutory percentage, so it is excluded from the total.

Items requiring payroll or quote confirmation, not established by any figure above: the private work-accident insurance premium rate.

Using an employer of record in Portugal

The modeled total includes salary payments and employer contributions. An employer of record adds its own fee on top, and that fee is a flat monthly amount rather than a percentage, so it weighs far more on a junior salary than a senior one. The published prices are here, and the calculator will add one to the figures on this page.

Written by Kaz, independent publisher.

Page last updated 2026-10-14. Sources are listed per figure and labeled statutory or payroll reference. Last full statutory dataset review: 2026-08-21. Individual facts may have later source-specific check dates. This is not legal, tax or payroll advice and we do not file anyone's payroll.

Every formula on this site is written out in full on Method. Ordering is by computed cost, never by what a provider pays us.

Corrections: contact form.