Gibson Watts Global: PEO & EOR Services


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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.

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  • Portugal and the United Kingdom hold the world’s longest ever diplomatic alliance. The Anglo-Portuguese Alliance was established in 1386, and the countries still share strong military and political bonds today.
  • 9 countries utilise Portuguese as their official language (over 236 million people worldwide). Some of these countries include Brazil, Mozambique, Angola and others.
  • Portugal is considered the oldest country in Europe, and Phoenicians settled in Lisbon in around 1200 BC as a result of the country’s fantastic trading location.

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Portugal PEO Services

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Working in Portugal

Employment Information

As a part of the European Union, Portugal utilises the Euro as its national currency. Compared to other European nations, Portugal offers particularly progressive employment laws, competitive taxation and a lower cost of living for residents in-country.

Portugal has a maximum legal working week of 40 hours. Employees in Portugal are also entitled to 22 days of paid annual leave, along with 12 mandatory public holidays, and two additional optional ones.

When it comes to temporary contracts, annual leave entitlements work on a prorated basis. For example, an employee can earn 2 working days of paid leave for every month of completed service.

Portugal has a social security system which provides sickness allowances to workers when required.

Portuguese employment law also offers parental leaves upon the birth of a child. Portuguese parental leaves can be shared between the parents (equating to a total leave period of 180 days). Pregnant employees can also utilise 30 days of maternity leave prior to the birth.

Paternity leave has a mandatory period of 15 days, which must be used in the 30 days following the birth. 5 of these days must be used immediately after the birthdate.

Taxes and Contributions

For employers in Portugal, the following contributions must be made on behalf of their employees:

  • 23.75% – Social Security
  • 1.75% – Labour Accident Insurance (varies depending on sectors)
  • 1.00% – Wage Guarantee Fund

Employees working in Portugal are required to cover the following contributions:

  • 11.00% – Social Security

Income Tax in Portugal is progressive depending on the income and family situation of an employee. It can vary based on a worker’s marital status and number of children. For example, an employee who is married with one child, with a partner who also works, will have the following tax rates deducted from their gross salary:

  • €10,000 – 1.20%
  • €20,000 – 16.60%
  • €30,000 – 22.50%
  • €40,000 – 26.80%
  • €50,000 – 29.80%
  • €60,000 – 31.40%


As a part of the European Union, citizens from other EU states are not required to obtain a work permit in order to start working in Portugal. EU citizens don’t require a visa, however obtaining a residence card within 6 months is required in order to work in country.

For non-EU citizens, workers must get hired first. Upon securing employment, it is the employer’s responsibility to secure a work permit. There is a range of visas available for businesses to apply for in order to facilitate a non-EU worker coming aboard.

A Portugal PEO or EOR provider can also provide guidance on this process. A PEO or EOR can provide a payroll solution in Portugal, so that workers can easily set up in Portugal and businesses can easily place workers in-country.

Cultural Information

Portugal is a multicultural, democratic country which boasts a range of progressive policies along with a very stable economy. The Portuguese’s dominant religion is Roman Catholic, and Portuguese is the dominant language.

As a multicultural and diverse nation, Portugal’s population speaks a range of languages including English, French and Spanish, along with a range of other religions.

Impacts from COVID-19

Following the COVID-19 pandemic, Portuguese businesses largely adopted remote working and flexible working patterns for workers. The Portuguese Government also introduced ‘The Right to Disconnect’, which prohibits bosses from being able to contact their employees outside of their working hours (this has some exceptions depending on industries).


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