The minimum yearly salary in Portugal is around €13.000,00.
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Hiring guidelines in Portugal
- Pay & taxes
- Leave policy
- Termination
- Time-off
- Additional info
Pay & taxes
Leave policy
Termination
Time-off
Additional info
Minimum Wage Requirements
Individual Income Tax
The individual income tax ranges from 14.5% to 48%. Income tax is calculated according to progressive rates. Multiple additional factors may impact overall rates.
| Income per year in EUR | Tax Rate (%) |
|---|---|
| 0 to 7,112 | 14.5% |
| Up to 10,732 | 25% |
| Up to 20,322 | 28.5% |
| Up to 25,075 | 35% |
| Up to 36,967 | 37% |
| Up to 80,882 | 45% |
| From 80,883 | 48% |
Payroll Cost
The employer cost is generally estimated at 26.9% of the employee salary:
- Social Security* - 23.75%
- Work Insurance Policy* - 1.4%
- Labor Accident Insurance* - 1.75%
- Telework Allowance - €50
- 13th month salary - 1/12 of 1 month basic salary
- 14th month salary - 1/12 of 1 month basic salary
Annual Costs
- Safety at work - EUR 30
- Health at work - EUR 120
*Social Security, Work Insurance Policy, and Labor Accident Insurance are calculated on the employee's salary + telework allowance.
Please note that 13th and 14th month salaries are paid to the employee in monthly instalments and are included in the total annual salary. Standard social security contributions apply.
Overtime Pay & Maximum Hours
Standard working hours are 8 hours per day and 40 hours per week. The standard work week is from Monday to Friday.
Overtime pay is mandatory and is not included in the salary. Worked hours outside of standard work hours are considered overtime. Employees can work a maximum of 2 hours of overtime per day. For overtime hours, employees are paid:
- 125% of the hourly rate for the first hour.
- 137.5% of the hourly rate for the following hours.
- 150% of the hourly rate for weekends and bank holidays.