Employer of record in Portugal: costs and rules

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A Portuguese employee on EUR 34,000 carries 23.75% employer Social Security (EUR 8,075 a year) plus a work-accident insurance premium when hired via an employer of record, and the provider's monthly charge per worker is listed between $199 (Payoneer Workforce Management, formerly Skuad) and $699 (Oyster) as of October 2026. Where American budgets usually go wrong in Portugal is the 14-payment year: Portuguese employees receive a holiday subsidy and a Christmas subsidy on top of 12 monthly salaries, and both carry Social Security, so the true annual base is 16.7% higher than 12 x monthly pay.

An employer of record in Portugal is a Portuguese company that hires your worker on its payroll, pays all 14 salary installments and Segurança Social contributions, carries the work-accident policy and leaves the job itself to you.

Employer cost on a sample salary
23.75% (plus work-accident…on top of gross pay
Minimum annual leave
22 working days
Currency
EUR
On this page

Portugal's 14-payment year and other rules

Fourteen payments a year. The subsídio de férias (holiday subsidy) and subsídio de Natal (Christmas subsidy) are each about one month's pay. Even the national floor follows the pattern: Decreto-Lei 139/2025 raised it to EUR 920 monthly for 2026 (from EUR 870), which over 14 payments is EUR 12,880.

No ceiling. The general-regime employer rate of 23.75% (employee 11%, 34.75% combined) applies to all pay, including both subsidies. Our source for the rate is a Millennium BCP rate sheet last updated April 20, 2015, more than ten years old; the rate is long-standing, but we have not yet confirmed it on seg-social.pt.

Funds that changed. The FCT compensation fund has been closed since January 1, 2024 (DL 115/2023). The FGCT guarantee fund charge of 0.075% of base pay is suspended until December 31, 2026 and is due to resume after that. Work-accident insurance is mandatory and bought from private insurers.

Leave is 22 working days. Three items remain open in our Portuguese research: the number of public holidays, the probation limits and the weekly hours. Expect the provider's contract to state all three.

Employment costs and rules in Portugal

Employing someone in Portugal: the rules and costs
ItemPortugal
Employer social contributions23.75% (general regime), paid on all 14 payments
What the employer paysSocial Security employer 23.75% (employee 11%, total 34.75%), no cap; FGCT 0.075% of base pay currently suspended until 31 Dec 2026; FCT closed (contributions suspended from 1 May 2023, fund closed from 1 Jan 2024 by DL 115/2023); mandatory work-accident insurance bought from private insurers (premium not priced)
Caps and ceilingsNo ceiling on general-regime social security. Contributions apply to holiday and Christmas subsidies
Employee contributions11%
Minimum wageEUR 920 a month from 1 Jan 2026 (Decreto-Lei 139/2025), paid 14 times a year (EUR 12,880 a year)
Mandatory bonuses14 payments: 12 monthly salaries plus a holiday subsidy (subsidio de ferias) and a Christmas subsidy (subsidio de Natal), each about one month's pay
Annual leave22 working days
Notice periodCollective dismissal and job extinction: 15 days (under 1 year), 30 days (1 to under 5), 60 days (5 to under 10), 75 days (10+) (Labor Code art. 363)
SeveranceCollective dismissal and job extinction: 14 days' base pay plus seniority supplements per full year (12 days before Lei 13/2023, May 2023). Caps (12 x monthly pay, 240 x minimum wage) unconfirmed today
Payroll frequencyMonthly (14 payments a year)
Sample salary usedEUR 34,000 a year = 14 x EUR 2,428.57
Employer cost on that salary23.75% (plus work-accident insurance)

Checked October 16, 2026. Source type: secondary. Sources are listed at the end of this page.

What an EOR charges to employ someone in Portugal

What EOR providers charge (published list prices)
ProviderEOR fee per employee per monthDepositEntity model (provider claim)
Payoneer Workforce Managementfrom $199None listedClaims owned entities across APAC, MEA, Europe and the Americas
Pebl$399Not listedAbout 90% of employees on Pebl-owned entities
Playrollfrom $399One month's salary per employee, refundableNo clear owned-entity claim
Rivermate$319 to $639Not statedClaims 38 owned entities
Multiplier$459 (annual) or $499 (monthly)Sized from costs, fees and notice period (method published, no fixed amount)Claims owned entities in 160+ countries
Rippling EORQuote only (third-party reference: $499)Not listedClaims Rippling entities; no partner mention
Deel$599Not stated by DeelClaims owned entities in 130+ countries
Remotefrom $599Waived for startups; otherwise not statedClaims 100% owned entities in 90+ countries
Atlasfrom $599Not publishedClaims owned entities in 160+ countries
Papaya Globalfrom $650Refundable deposit, amount not statedUses in-country partners
Oyster$699At least one month of total service cost, refundable (per its terms)Owned entities and partners
Globalization Partners (G-P)Quote onlyNot statedInformation page claims 100+ wholly owned entities

Source: each provider’s pricing page, checked October 16, 2026. Fees are the provider’s charge on top of salary and the employer contributions above. Some providers adjust prices by country.

Pricing a EUR 34,000 Portuguese hire

Employer cost in Portugal on EUR 34,000 a year (14 x EUR 2,428.57)
LineCalculationEUR per year
12 monthly salaries12 x 2,428.5729,142.84
Holiday subsidy1 x 2,428.572,428.57
Christmas subsidy1 x 2,428.572,428.57
Gross pay, 14 payments34,000 (rounded)
Social Security, employer23.75% x 34,0008,075.00
Work-accident insuranceprivate insurer premiumnot priced
FGCT0.075%, suspended to Dec 31, 20260 in 2026 (25.50 from 2027)
Salary plus employer cost42,075.00
EOR fee at $599 a monthkept in USD$7,188

Working: 34,000 x 23.75% = 8,075; when the FGCT returns, 34,000 x 0.075% = 25.50. The 23.75% rate comes from a Millennium BCP rate sheet (secondary) pending a seg-social.pt check; the $599 is the Deel and Remote list price in October 2026.

If a quote shows EUR 2,428.57 x 12 = EUR 29,142.84 as the annual salary, it is missing two payments. The true base is EUR 34,000, 16.7% higher, and Social Security is due on all of it.

Try other salaries in the calculator for international employee cost, and compare Portugal with Spain in the cost index by country.

Leaving: notice and compensation in Portugal

For collective dismissal and job extinction, the Labor Code (art. 363) sets employer notice of 15 days with under 1 year of service, 30 days from 1 to under 5 years, 60 days from 5 to under 10 years and 75 days at 10 years or more. Compensation is 14 days of base pay plus seniority supplements per full year of service, up from 12 days before Lei 13/2023 (May 2023). The caps on that compensation remain unverified on our side. Whatever the figure, it reaches you through the provider's invoice, so settle who funds it before the first payslip.

Selecting an EOR for Portugal

The points system we publish gives Multiplier 79, Oyster 64, Remote 62 and Deel 54. A useful twist for Portugal: providers bill their fee 12 times a year while you pay salary 14 times, so the fee as a share of pay is lower than it looks. Multiplier's $459 annual-plan rate is $5,508 a year; Oyster's $699 is $8,388 plus a deposit of at least a month of its charges; Remote and Deel at $599 come to $7,188. Before choosing, check that the estimate lists both subsidies and names the work-accident insurer with its premium. The scorecard is in our best EOR services list; contract terms are in the Oyster, Remote and Deel reviews.

Self-employed contractors in Portugal

Hiring a Portuguese professional who invoices as an independent worker avoids the 23.75% employer charge and the two subsidies. Exclusivity, set hours and day-to-day direction from your side point toward a disguised employment contract, and then both subsidies and the contributions would be owed back. A contractor of record takes on that risk; a contractor platform only handles contracts and pay.

When to set up in Portugal yourself

Through a $599 provider, a Lisbon or Porto hire costs $7,188 a year in fees. Your own Portuguese company avoids that but brings registration, accounting, a payroll that handles 14 payments and your own work-accident policy. Our EOR or entity guide explains where the break-even sits.

Frequently asked questions

What does a Portuguese employee cost the employer?
For EUR 34,000 paid as 14 installments of EUR 2,428.57: EUR 8,075 a year of employer Social Security at 23.75%, plus a privately priced work-accident premium. Provider fees come separately, listed at $199 to $699 per worker monthly in October 2026.
Are the 13th and 14th month salaries mandatory in Portugal?
Yes. Employees receive a holiday subsidy and a Christmas subsidy, each about one month's pay, on top of 12 monthly salaries, and Social Security is due on both.
What is Portugal's 2026 minimum wage, counted over a full year?
EUR 12,880: the monthly EUR 920 set by Decreto-Lei 139/2025 from January 1, 2026, times 14 payments (DGERT). The 2025 monthly figure was EUR 870.
Which Social Security rate does a Portuguese employer pay?
23.75% under the general regime, with the employee paying 11%, and no ceiling (per a Millennium BCP rate sheet updated in April 2015, a secondary source). The FGCT charge of 0.075% is suspended until December 31, 2026.
What compensation is due on dismissal in Portugal?
For collective dismissal or job extinction, 14 days of base pay plus seniority supplements per full year of service (12 days before Lei 13/2023), with notice of 15 to 75 days depending on service (Labor Code art. 363).
Sources (8)
  1. Payoneer Workforce Management (formerly Skuad): Skuad pricing page (checked Oct 16, 2026)
  2. Pebl: Pebl EOR pricing page (checked Oct 16, 2026)
  3. Playroll: Playroll pricing page (checked Oct 16, 2026)
  4. Multiplier: Multiplier pricing page (checked Oct 16, 2026)
  5. Oyster: Oyster pricing page (checked Oct 16, 2026)
  6. Deel: Deel pricing page (checked Oct 16, 2026)
  7. Remote: Remote pricing page (checked Oct 16, 2026)
  8. dgert.gov.pt/retribuicao-minima-mensal-garantida-para-2026 (checked October 16, 2026)

This page is general information, not tax, legal or accounting advice. Rules and rates change, so check the official source linked above before you file or sign a contract. Read our disclaimer.

Checked Oct 17See Multiplier pricing on Multiplier’s site