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Country comparison

Netherlands or Portugal: which costs the employer more

Portugal costs the employer more: 40.4% on top of the salary, against 24.6% in the Netherlands.

Each country uses its own currency, so we compare the percentage. We publish no exchange rate and convert nothing.

Employer cost on a mid-level salary in each country's own currency. The percentage is what the employer adds to the gross salary.
NetherlandsPortugal
Salary used€60,000€60,000
Statutory contributions€9,978€14,250
Mandatory extra pay0.96 months2 months
Total employer cost€74,778€84,250
Added on top of the salary24.6%40.4%
Statutory paid leave20 days22 days
Public holidays013
Minimum employer notice4 weeks2.14 weeks

Where the difference actually comes from

Netherlands: All four employer premiums share the same 2026 ceiling of 79,409 euro, so the marginal employer cost above that level is zero.

Portugal: 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 formula behind both columns

total employer cost = gross salary + sum over each statutory contribution of rate x max(0, min(salary, ceiling) - band floor) (zero if the contribution applies only below a wage the salary exceeds) + gross salary x (mandatory extra months / 12) + gross salary x mandatory severance accrual rate

Ceilings are the reason this ordering can reverse at a higher salary. Run both countries through the calculator at the salary you actually intend to pay before you treat either number as settled.

Related

Written by Kaz, independent publisher. No commercial relationship with the providers named unless it is listed on the disclosure page.

Page last updated 2026-08-30. Sources: statutory bodies only, listed per figure. Rates last verified 2026-08-21. 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.

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