Cost to Hire an Employee in Portugal (2026)

• Gross salary, paid in 14 instalments a year.
• Employer costs of about 25.3% at a €35,000 salary: €8,839 a year, of which the largest is social security (TSU), employer share.
• An EOR fee, if you hire without your own entity. The providers in our Portugal guide publish starting prices of US$399–699 per employee per month.

Mandatory employer costs at a €35,000 salary (mid-level professional). Employee contributions and income tax come out of gross pay and aren't included.

Contribution ceilings mean employer costs can be a smaller share of higher salaries. Figures exclude the EOR fee.

• Employer social security: 23.75% of gross pay
• Employee social security: 11% of gross pay
• Salary payments per year: 14 (12 + holiday + Christmas)
• Minimum wage (2026): €920 / month
• Paid annual leave: 22 working days
• Standard working week: 40 hours (8 per day)

• Meal allowance (card, ~220 working days) (€2,244 / year): Not required by law for most employers, but near-universal in practice and often set by collective agreements. Exempt from tax and social security up to a daily limit.
• Percentage costs are applied to total annual gross pay as a simplification. Payroll systems apply some rates to narrower bases.
• Employee social security (11%) and income tax (IRS) are deducted from gross pay. They are not extra employer costs.
• Most EOR providers charge a refundable security deposit, often one to two months of total employment cost, when the contract starts.
• Optional benefits such as private health insurance (commonly €300–€900 per year per employee) or a remote-work allowance are not included.

Without your own entity in Portugal, an Employer of Record can employ your hire for a monthly fee. The alternative is setting up your own Portuguese Lda. See the comparison in our Portugal guide and EOR vs local entity.