Portugal: Payroll & Employment Facts
Verified statutory employment facts for Portugal, each with its official source and the date it applies from. This is our reference record. For provider choice and hiring advice, see the Portugal employer-of-record guide and the Portugal country hub.
What is the minimum wage in Portugal?
| National minimum wage |
€920.00 / month
|
|---|---|
| Next review date |
2027-01-01
|
What employer social contributions apply in Portugal?
Rates are a percentage of gross wage, applied up to the annual contribution ceiling.
| Employer social security rate |
23.75%
|
|---|---|
| Pension |
Not available
|
| Healthcare |
Not available
|
| Mandatory Work Accident Insurance (Seguro de Acidentes de Trabalho) |
1.00%
|
| Annual contribution ceiling |
Not available
|
| Total employer burden |
24.75%
|
What notice and leave rules apply in Portugal?
Statutory minimum notice the employer must give, by completed length of service.
| Length of service | Employer notice |
|---|---|
| 0 to 11 months | 2 weeks |
| 12 to 59 months | 4 weeks |
| 60 to 119 months | 8 weeks |
| 120+ months | 10 weeks |
| Payment in lieu of notice (PILON) |
Permitted
|
|---|---|
| Minimum annual leave |
22 days
|
| Annual leave includes public holidays |
No
|
| Public holidays per year |
13 days
|
Is 13th-month pay required in Portugal?
None of the following are mandated by statute; they may still arise from a contract or collective agreement.
| Thirteenth-month pay required |
Yes
|
|---|---|
| Profit sharing required |
No
|
| Holiday bonus required |
Yes
|
How is severance calculated in Portugal?
| Formula |
Objective/collective dismissal compensation (Codigo do Trabalho art. 366): 14 days of base salary + seniority payments per full year of service for service accrued from May 2023 (Law 13/2023); 12 days/year for service 1 Oct 2013-Apr 2023; older service frozen at 18/20/30 days/year by date tier. Caps: monthly reference pay capped at 20x the national minimum wage; total compensation capped at 12x monthly base+seniority pay OR 240x the minimum wage, whichever is lower. No minimum qualifying tenure (accrues pro-rata from day one).
|
|---|---|
| Per-year multiplier |
2 weeks of pay
|
| Minimum qualifying tenure |
1 months
|
| Calculation base |
Other
|
Worked example
Scenario: An employee with 5 years of continuous service is made redundant. Their annual salary is £30,000. Assuming exchange rate 1 GBP = 1.17 EUR, annual salary is €35,100. Monthly base pay: €35,100 / 12 = €2,925 (below cap). Daily pay: (€2,925 * 12) / 365 = €96.16. Formula application: 14 days * €96.16 = €1,346.24 per year. Total for 5 years: €1,346.24 * 5 = €6,731.20. Total (€6,731.20) is below overall cap of 12 times monthly pay (€35,100). Result: €6,731.20.