Portugal
Payroll, tax, and labor-law updates for Portugal.
Portugal's subsídio de férias and subsídio de Natal: the 14-payment year and how each payment is taxed
A Portuguese employee on €1,500 a month is paid €21,000 a year, not €18,000. The difference is the subsídio de férias (holiday subsidy) and the subsídio de Natal (Christmas subsidy), often called the 14th and 13th month…
Niko Nurmentaus
Product Lead
How Portugal taxes benefits in kind, and where the exemptions apply
A meal card and a company car are both pay. Portuguese tax law treats them that way by default: a benefit in kind (rendimento em espécie, non-cash remuneration provided because of the job) is employment income in…
Mehmood Deshmukh
CTO & Co-Founder
Portugal's minimum wage in 2026: why a worker on €920 costs more than €920 times twelve
Pricing a Portuguese employee is where payroll teams new to the country get the annual cost wrong. The instinct is to annualize the way most countries work: monthly wage times twelve, plus employer social security. In…
Niko Nurmentaus
Product Lead
Portugal's social security contribution: one rate, no ceiling, two deadlines
Portugal charges a single social security contribution on employment income, the Taxa Social Única (TSU), and the rate is 34.75% of gross pay. The employer pays 23.75% and the employee pays 11% (Código dos Regimes…
Mehmood Deshmukh
CTO & Co-Founder
Terminating an Employee in Portugal: The Steps and How Severance Is Calculated
The first thing to understand about ending an employment relationship in Portugal is that an employer cannot simply decide to let someone go. Job security is a constitutional right (Article 53 of the Constitution…
Greg Miaskiewicz
CEO & Co-Founder
