Global payroll in Portugal

Only 499 EUR per employee per month

We currently do not offer any services in this country.
We're sorry for the inconvenience...

Rivermate's global payroll solution helps companies hire remote employees in Portugal . We take care of global payroll, taxes, benefits, compliance and HR activities. So you can focus on growing your business. Our global payroll solution is beneficial to companies that want to hire remote employees in a breeze. On this page you will find employment information for Portugal.

1. Grow your team in Portugal with Rivermate as your global payroll provider

Payroll, benefits, taxes, and compliance can be difficult to manage in , particularly if you don't have established local relationships. You can hire employees in effectively, conveniently, and in full compliance with all relevant labor laws using Rivermate's global Employer of Record (EOR) solution. We handle the responsibilities and legal risks associated with foreign employment so you can concentrate on growing your company.

2. Introduction to global payroll in Portugal

If you are interested in hiring a remote team in Portugal, or even just individual remote employees in Portugal, then you have come to the right place!

Rivermate is an Employer of Record (EOR) that offers Portugal payroll solutions. As a Portugal payroll provider, we will cover everything from salary, benefits, employer-to-employee contributions, and especially payroll compliance in Portugal. We are confident Rivermate’s payroll solutions Portugal will help you grow as a business—because now, you won’t have to worry about your payroll solutions Portugal. We take care of everything payroll!

With Rivermate, you can run Portugal payroll services in just one click—regardless of currency, benefits, insurance, and your local labor laws. Everything is automated. Our priority is for you to focus on your company’s strategy and growth.

Our Rivermate Global Payroll services are made especially for startups and scaleups. We know that startups try to be extra prudent when it comes to choosing a payroll provider, so it is our mission at Rivermate to be your most reliable and cheapest payroll provider option. So if you’re looking for global payroll providers for small businesses, look no further and book a call with us now!

3. How to set up global payroll in Portugal

Once you've determined the best Portugal payroll option for your company, you'll need to collect some information from employees in order to add them to your payroll. Begin by acquiring their personal identification number, tax deduction card, and emergency contact information. When an employee begins working and provides you with their tax deduction card, they become a part of the social security system and are eligible for benefits.

4. Taxation rules for global payroll in Portugal

In Portugal, taxation rules differ for employees and employers. Every employee contributes 11% of their monthly salary to social security coverage. Employers contribute 23.75%. The country employs a progressive tax system in which employees pay a higher percentage of their earnings.

Employers can expect to pay a variety of corporate income taxes (IRCs) at various rates, including:

1. A 21% corporate tax

2. A 3% to 7% state surcharge tax

3. Municipal surcharge of up to 1.5%, depending on the municipality

4. Maximum combined tax rate of 31.5%

5. Payroll options for companies in Portugal

Companies that wish to expand their operations globally have four different payroll options in Portugal. These payroll options are:

1. Internal Payroll. This payroll option is applicable for already established companies in Portugal. It includes devoting an entire Human Resources staff to running the company's payroll procedures.

2. Remote Payroll. Smaller firms may lack the capacity to handle their own payroll, but they may add their workers to the parent company's payroll. This action, on the other hand, requires considerable thinking. You must guarantee that you follow the rules and laws of each nation.

Working with a local outsourcing firm is one method to retain money in the local economy, but you'll still need to study all of the local rules and regulations, since you'll be held responsible.

3. Portugal payroll outsourcing: Outsourcing your payroll to an Employer of Record in Portugal, such as Rivermate, is another alternative for Andorra payroll outsourcing. We can manage all aspects of your payroll, including compliance. Send us a note and we'll get back to you as soon as possible!

6. Payroll compliance Portugal

It is the obligation of the employer to ensure that all payroll-related transactions are properly documented and recorded. All salaries and compensation payments must adhere to the local minimum wage as well as other applicable laws and regulations.

Rivermate's payroll services in Portugal can assist you in staying in compliance with the country's ever-changing payroll rules. We provide an all-inclusive solution that covers everything from compliance and reporting to salary payments.)

7. How to manage payroll in Portugal

Companies that have a business presence in Portugal have different ways of managing payroll. However, most of the options you have for running payroll in Portugal are either expensive or require establishing a subsidiary in Portugal. The cheapest, most efficient, and most reliable payroll processing system in Portugal is by outsourcing payroll to Employers of Record (EOR) in Portugal. Rivermate is one of those Employers of Record.

At Rivermate, we offer you the most efficient, most compliant, and cheapest HR and Payroll Management services in Portugal. We do this by taking care of your payroll-related needs, such as keeping track of your employees’ financial records, including incentives, gross and net salary, and payslips, all the while staying compliant with the labor laws in Portugal. Because we do your online payroll management for you, you can have absolute focus on your business’ strategy and growth.

Rivermate is all about growth through collaboration and we achieve this by offering the most reliable yet cheapest services for managing payroll for small businesses in Portugal.

8. Entitlement and termination terms in Portugal

Collective dismissal, dismissal owing to position abolition, unsuitability for the work, and disciplinary dismissals are all grounds for termination.

The procedure varies depending to the cause for dismissal, but in each case, the employee should be informed of the reason for dismissal prior to discharge. In the event of dismissal for misconduct, a hearing should be held to allow the employee to respond.

Notice of dismissal should be in writing. Notification of dismissal shall be sent to the competent Ministry of Labour service (except in cases of discipline dismissal) and to the workers' representative.

Accrued and unused vacation time is also owed to the employee, regardless of the reason for and manner of termination.

9. Compensation in Portugal

Portugal's minimum wage is now 665 EUR per month as of 2021. However, if an employee is protected by a collective bargaining agreement, their necessary minimum pay may vary.

10. Working hours and overtime in Portugal

The standard workweek is 40 hours and the day is eight hours. Work hours and overtime restrictions vary by business size and may be governed by collective bargaining agreements.

11. Employee benefits in Portugal

The national system provides basic insurance. Employees may be offered supplemental health insurance as a perk. Most top executives seek additional health and life insurance, although smaller businesses may choose to give a stipend instead of arranging insurance.

Many companies in Portugal provide meal and transportation subsidies.

12. Why choose Rivermate as your global payroll provider in Portugal

Establishing an entity in to hire a team takes time, money, and effort. The labor law in has strong worker employment protection, requiring great attention to details and a thorough awareness of local best practices. Rivermate makes expanding into simple and effortless. We can assist you with hiring your preferred talent, managing HR and payroll, and ensuring compliance with local legislation without the hassle of establishing a foreign branch office or subsidiary. Our PEO and Global Employer of Record (EOR) solutions in give you peace of mind so you can focus on running your business. Please contact us if you'd like to learn more about how Rivermate can help you hire employees in via our Employer of Record (EOR) / PEO solution.

A woman relaxing and drinking coffee
Hire anyone, anywhere
Ready to get started?