In Portugal, the following must be adhered to under strict local legislation:

• Employer Taxes 26.5%
• Minimum Wage EUR 775.80
• 13th & 14th Month Payments

How does payroll work in Portugal?

In Portugal, it is common for employers to pay 13th and 14th month payments, due in June and December respectively. This is not an additional expense to the employer as the annual salary is divided into 14 equal segments. One-fourteenth is paid each month, with the exception of June and December when the additional portion is payable.

What are the general employment rules?

Maternity Leave in Portugal is paid for by the Portuguese Social Security System. Mothers are entitled to 100% pay for 120 consecutive days – with a maximum of 30 days taken prior to the due date and a minimum of 42 days following the birth. This can be extended to 150 days if both parents take 30 days simultaneously.

What about dismissing an employee?

A strict process must be followed in order to terminate an employee’s contract, including written communication to the employee and the Ministry of Labour. However, there are numerous reasons for dismissal and routes that an employer can take, and we recommend speaking with a member of our Employment Law team before proceeding.