Find your employer of record in Portugal

The main statutory benefits in Portugal are the following:

• Transportation allowance.
• Meal vouchers.
• Private health insurance.
• Gym allowance.
• Private pension.
• Additional leave.
• Bonus.

In order to work in Portugal for longer than 6 months, foreign individuals will require a Residence Certificate (Certificado de Registro). Besides, most individuals who are not part of the European Union Countries may also need a Portuguese work permit before they can undertake employment in this country. And in most cases, the authorities only grant this permit once a job offer is confirmed. Then, they will approve it so the applicant can continue the process to obtain a Portuguese work visa or residence permit.

After spending 5 years residing in Portugal, a foreign individual can claim Portuguese permanent residence. Furthermore, they can also claim Portuguese citizenship after spending 6 years residing in the country.

On the other hand, Portugal has quotas to limit the number of jobs that go to third-country nationals. This way, it is possible to improve employment opportunities for Portuguese citizens and EU nationals. Besides, most jobs must be advertised to Portuguese and EU/EFTA citizens for 30 days. After those 30 days, the Institute for Employment and Vocational Training in Portugal (IEFP) will classify these jobs as that non-EU workers can freely fill. Finding global employees is easier with Global Employment Outsourcing solutions and employee onboarding services.

In Portugal, the standard VAT rate varies depending on the location. For example, in Continental Portugal, the VAT rate is 23.00%, and in Azores, it is 18,00%. On the other hand, the VAT rate in Madeira is 22.00%. And if you desire to learn more about VAT rates in Portugal, try requesting International PEO or Contractor Management services.

Notice Period

Generally, employment contracts or collective agreements stipulate notice periods in Portugal. Besides, notice periods are linked to the employee’s length of employment, as follows:

• If the employee served for less than 6 months, they receive a 7-day notice.
• For serving between 6 and 48 months, employees receive a 1-month notice.
• For serving more than 2 years, employees receive a 2-month notice.

Severance Pay

In Portugal, severance pay depends on many factors, which include the terms of the employment contract. Additionally, the role/position of the employee and the reason for termination are other factors that influence the severance pay calculation.

There is a minimum amount of severance pay due (if applicable). And it is 18 days of the usual salary rate for the first 3 years of services. Plus, it can be 12 days’ salary for each subsequent year of service. With international PEO services, you can learn more about severance pay in Portugal.

Probation Period

In Portugal, the probation period for a permanent employee consists of 90 days for most roles. However, for highly technical or complex roles, it is a 180-day probation period. And for management, directorate, and similar responsibility roles, the probation period lasts 240 days.

Nonetheless, for fixed and unfixed-term temporary contracts, there can be shorter probation periods. With an Employer of Record in Portugal, you will be able to learn more about probation periods in this country.

Paid Time Offs

The employment contract of an employee sets paid leave as a minimum of 22 days of paid holiday per year. But the employees can receive this entitlement in addition to public holidays following the completion of 1 year of service.

Employees must apply for all paid time off requests before the start of their leave and obtain approval from their employer. And the leave can be carried forward into the next year, but employees must use it by April 30th.

On the other hand, employees can obtain 20 days of leave during their first year of employment. And they will accumulate them as 2 days every month. Nonetheless, if the employment starts during the first half of the year, employees will receive 8 days of vacation after completing 60 days of work. And, if the calendar year ends before employees complete 6 months, these days will be extended until June 30th the following year.

Public Holidays

There are 13 national holidays throughout the year.

Vacation Holidays

There are 22 vacation holidays throughout the year.

Sick Days

Before receiving a sickness benefit, employees must obtain a valid certification from a competent health service doctor. And this certification must state that they are unable to work. Furthermore, they must have completed employment service of at least 6 calendar months, consecutive or otherwise.

On the other hand, sick leave calculation involves a daily benefit and applies a percentage to the employee’s reference remuneration. And this percentage can vary depending on the duration and nature of the employee’s illness, as follows:

• In case the illness lasts for up to 30 days, the employee will receive 55% of the reference remuneration.
• In case the illness lasts between 31 and 90 days, the employee will receive 60% of the reference remuneration.
• But in case the illness lasts between 91 and 365 days, the employee will receive 70% of the reference remuneration.
• Lastly, if the illness lasts more than 365 days, the employee will receive 75% of the reference remuneration.

In addition, the sick leave period depends on the duration of the illness. And it is also subject to the following maximum periods:

• For employed workers, seafarers, and coastguards, it is up to 1,095 days.
• For self-employed and scientific research grant holders, it is up to 365 days.

With an Employer of Record in Portugal, calculating sick leave can be easier.