Overview
Min wage
740 EUR per month
Work hours per week
40 hours
Tax Breakdown
- Social Security: 23.75%
- Labor Accident Insurance: 1.75%
- WGF (wage guarantee fund): 1.00%
VAT
VAT
- There are 3 standard/general VAT rates in Portugal:
- 23% in Continental Portugal
- In Azores it is 18%
- In Madeira it is 22%
Tax Calculation for Portugal
Gross monthly salary costs
GBP 8,334
Estimated taxes and contributions
GBP 8,334

Gross monthly salary
GBP 8,334
Estimated taxes & social security
GBP 8,334

Gross yearly salary costs
GBP 8,334
Estimated taxes and contributions
GBP 8,334

Gross yearly salary
GBP 8,334
Estimated taxes & social security
GBP 8,334

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How it works
Onboarding Process
Onboarding in Portugal typically includes the following steps to ensure a smooth transition for new hires:
Pre-boarding
Pre-boarding
Pre-boarding
Key Elements of an Employment Contract in Portugal
When drafting an employment contract for employees in Portugal, the following key elements should be included:
Name, contact information, and role of the employee.
Employee Leave Policies
Sick days
- Minimum requirement for leave is four days.
- Social Security pays the following:
- 55%: for first 30 days
- 60%: between 31 and 90 days
- 70%: between 91 and 365 days
- 75%: up to 366 days
Maternity leave
- Social security pays the maternity leave
- 120 days (just for mother): pay 100%
- 150 days of shared leave (120 mother + 30 father): pay 100%
- 180 days shared leave (150 mother + 30 father): pay 100%
- 180 days (150 mother +30 father): pay 83%
- 150 days: pay 80%
Paternity leave
- Paternity leave is mandatory for 20 days, with 5 additional days.
- Social security pays leave at 100% of the average salary for the last six months.
Public holidays in Portugal
- 1 Jan: Friday, New Year's Day
- 2 Apr: Friday, Good Friday
- 4 Apr: Sunday, Easter Sunday
- 25 Apr: Sunday, Liberty Day
- 1 May: Saturday, Labor Day / May Day
- 3 Jun: Thursday, Corpus Christi
- 10 Jun: Thursday, Portugal Day
- 15 Aug: Sunday, Assumption of Mary
- 5 Oct: Tuesday, Republic Implantation
- 1 Nov: Monday, All Saints' Day
- 1 Dec: Wednesday, Restoration of Independence
- 8 Dec: Wednesday, Feast of the Immaculate Conception
- 25 Dec: Saturday, Christmas Day
Termination Process
- There are three possible grounds for termination: collective dismissal, disqualification due to abolition of position or unsuitability for the job, and disciplinary dismissals.
- Although the process can change depending on the reason for dismissal, it is important that the employee is informed of the reasons for dismissal before he or she is dismissed.
- Dismissal for discipline reasons should be heard and the employee given an opportunity to respond.
- Notification of dismissal should be sent in writing.
- Notification of dismissal must be sent to the relevant Ministry of Labor service (except for discipline dismissal) as well as to the workers' representative.
- The worker is also responsible for any vacations accrued or not taken, regardless of the reason and the form of termination.
Name, contact information, and role of the employee.
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