PORTUGAL PAYROLL SERVICES
Expand in Portugal and hire a local workforce, we will take care of all your HR and payroll functions
A top tech destination for international established businesses and startups, Portugal is one of the most innovative countries in Europe , having a vibrant startup ecosystem, rich culture and an unmatched level of quality of life.
Known for the easiness of doing business, Portugal has, however, unique employment laws and regulations that can be difficult to deal with.
With fully-owned local operations BRIDGE IN helps you navigate the complexity of draw n-out administrative procedures, labour laws and payroll processing in Portugal whether or not you have a locally registered entity.
Wondering whether expanding your business and hiring your team in Portugal is the right decision? Check out our ebook “ Portugal as a Tech Destination ” to know how having a presence in Portugal can help your business thrive.
Get a personalised service - we are not a global generic PEO, we specialise in helping tech or tech-enabled companies set foot into the European market through Portugal.
BRIDGE IN staff has extensive experience in recruiting and managing tech, sales and customer service teams on behalf of international companies.
BRIDGE IN: Your PEO and Payroll Processing Partner in Portugal
If you’re unsure about managing payroll in a new country, onboarding new employees or completing visa applications, a Professional Employer Organisation can take full responsibility for all employment issues, improve cost structures and reduce risk by keeping you on the right side of compliance.
Our dedicated local team will provide everything you need to fully manage your human resources functions in a matter of days, saving you time and money while ensuring your company is law-abiding:
- Comply with Portuguese labour laws and regulations
- Deduct the appropriate tax and social security withholdings
- Ensure your employees in Portugal are paid accurately and on time
- Benefits Management - BRIDGE IN will help you build and manage a competitive benefits package, interfacing with local providers and brokers, to improve talent attraction and retention
- Expense Management and Reimbursement - Your team will likely incur business expenses while doing their job. We will help you manage expenses, their reimbursement, and the additional taxes associated with it, for full compliance.
Portugal: Mandatory Benefits, Payroll and Taxes Information
Employer Payroll Contributions in Portugal:
23,75% - Social Security
1,75% - Labour Accident Insurance (the amount varies depending on the sector of activity)
Employee Payroll Contribution:
11,00% - Social Security
Employee Income Tax is a progressive tax that varies based on income and family situation, namely, marital status and number of dependents (children).
For an employee who is married to another worker, and who has one child, the tax deducted from the salary is:
10k€ gross salary - 1.20%
20k€ gross salary - 16.60%
30k€ gross salary - 22.50%
40k€ gross salary - 26.80%
50k€ gross salary - 29.80%
60k€ gross salary - 31.40%
Mandatory Employee Benefits in Portugal:
Workers’ compensation insurance and holiday pay are among the mandatory employee benefits in Portugal.
Additional employee benefits in Portugal include company cars, meal allowance cards, childcare vouchers, voluntary benefits, flexible benefits, workplace canteens, bike to work, gym fees etc…
Workers Compensation Insurance in Portugal:
Local labour laws establish that each employee must pass a mandatory Medical Exam and has the right to Labour Insurance, covering accidents at work or in itinere (during commute).
Holiday Pay
All workers are legally entitled to 22 paid holidays per year. In some cases, where collective labor agreements are in force, a higher period of paid holidays must be granted (typically 25 days).
Meal Allowance
Employers generally pay employees a meal allowance for each workday. Such allowance is fully taxable unless it is paid through a card or ticket; should this be the case, the allowance becomes tax-exempt up to a certain limit.