PORTUGAL PEO & EOR
Hire in Portugal without a local entity today
As a Global PEO & EOR service provider, we pride ourselves on our global reach, in-country knowledge, and ability to swiftly and efficiently mobilize workers around the world. Our robust PEO/EOR covers everything from global HR, payroll, compliance, in-country support, immigration, visas, and more.
Get started and hire in Portugal today with Gibson Watts Global.
DID YOU KNOW
- Portugal is Europe’s clean-energy champion. Over 70% of Portugal’s electricity now comes from renewable sources — one of the highest shares in the EU – with major investments in wind, hydro, and solar energy. (Reuters, 2025)
- The four-day workweek trial in Portugal (launched in 2024) showed promising results: 92% of companies reported higher productivity and improved employee wellbeing, leading to discussions about expanding flexible working schemes nationwide. (Expresso, 2025)
- Lisbon and Porto are among Europe’s top digital-nomad hubs. Portugal’s D8 “digital nomad” visa allows remote professionals to live and work in the country for up to a year (renewable), attracting tens of thousands of tech workers annually.
Forget software,
this is expansion
with a human touch
Portugal EOR Services
A well-regulated, EU-based hub for Southern Europe
Portugal combines strong EU-aligned labour laws, attractive fiscal regimes for certain professionals, a well-educated workforce, and good infrastructure. Companies expanding into Portugal benefit from stable regulation and access to both the Iberian and wider European markets.
But to operate compliantly, it’s necessary to navigate Portuguese labour code, social security, taxation, work permit / visa requirements for non-EU nationals, collective bargaining agreements, and benefits such as holiday and parental leave. By partnering with Gibson Watts Global as your Employer of Record in Portugal, you gain an expert partner who manages payroll, employment contracts, deductions, leave entitlements, regulatory compliance, and employer obligations – so you can scale operations without worrying about local legal and administrative risks.
Working in Portugal
Financial Year Dates
1 January to 31 December
Minimum Wage
From 1 January 2025, the national minimum wage (Retribuição Mínima Mensal Garantida, RMMG) in mainland Portugal is €870 per month.
Standard working hours
Standard full-time working hours are 40 hours per week, 8 hours per day.
Overtime
Overtime is permitted under Portuguese law; compensation is required (higher pay or other compensatory measures), often governed by CBAs.
The exact premium depends on sectoral agreement; base labour code requires at least payment for overtime hours.
Holiday Allowance
Employees are entitled to 22 working days of paid annual leave per year.
Sick Leave
Sick leave is covered under social security; employees must provide medical certificate. Compensation is based on reference remuneration. (Exact % depends on duration, type of illness, etc.)
Maternity & Paternity Leave
Parental leave (initial): Employees are entitled to choose between 120 or 150 consecutive days of leave (for both parents combined). 120 days → 100% of reference remuneration.
150 days → 80% of reference remuneration.
Maternity: Mothers have a mandatory 42 days leave after birth; optional up to 30 days before birth (counts as part of parental leave).
Paternity: Fathers are entitled to 28 mandatory days, of which 7 days must be immediately after birth; plus 7 optional days (can be non-consecutive) during the mother’s mandatory period.
Public Holidays
Portugal has 13 national public holidays; plus optional holidays/local observances.
Social Contributions
Employee contribution: 11% of gross salary.
Employer contribution: 23.75% of gross salary.
These cover social security contributions for pension, unemployment, illness, family benefits etc.
Income Tax
Portugal uses a progressive personal income tax system (IRS). Rates increase with income; higher incomes pay higher marginal rates.
Health Care
Public healthcare system (Serviço Nacional de Saúde) provides universal basic medical services; funded via general taxation and social security.
Visas
EU/EEA/Swiss nationals: no visa required, free to work.
Non-EU nationals: work permit/residence visa is required for employment. Employers or the EOR often act as sponsor.
Portugal offers visa/residency options for skilled professionals, remote workers, etc. (e.g. D7, D8 visas / permits).
13th salary?
Portugal does have statutory holiday and Christmas bonuses which function similarly to a 13th and 14th salary: one bonus (“subsídio de férias”) and one bonus (“subsídio de Natal”) each year, each equal to one month’s salary. Thus employees end up with 14 salary payments per year in most cases. For further details on international practices, see: 13th-14th Salary: The Complete Guide.
Cultural Information
Business culture in Portugal is formal but increasingly flexible. Respect for hierarchy, politeness, and titles remains important in traditional sectors. Personal rapport and face-to-face interactions are valued. Meetings are generally scheduled and punctual, though slight lateness is more tolerated than in some Northern European countries.
Portugal has a strong tradition of work-life balance, with family closeness important. Lunch breaks tend to be longer in many regions, and remote / hybrid working is now more common in many sectors.