The Hardest Market · Portugal

Portugal's HR data

The rules and costs of employing people in Portugal (Lisbon), from official sources, in English and Japanese.

39.4%women in management (2025, ILO)
1.24×employer's total cost on €40,000 a year, as a multiple of salary
14public holidays (2026)

Employment rules

Statutory annual leave22 working days (+ holiday allowance)
Public holidays (2026)14 days
Notice of dismissalEmployer 15-75 days by service; employee 30/60 days
Severance required by law14 days' pay per year (objective grounds)
Typical negotiated exitNo official benchmark; mutual-agreement exits common
Probation90 days; 180 or 240 for senior roles
Working hours40 h/week, 8 h/day
How hard is dismissal?Hard: just cause or objective grounds with formal procedure

Employer contributions

Social security (employer)23.75%

Employee contributions

Social security (employee)11%

Take-home pay and employer cost by annual salary

Annual salaryEmployee contributionsIncome taxTake-homeEmployer costCost ÷ salary
€25,000€2,750€3,108€19,142€30,9381.24×
€40,000€4,400€7,751€27,849€49,5001.24×
€60,000€6,600€14,953€38,447€74,2501.24×
€90,000€9,900€26,865€53,235€111,3751.24×

Employee in Lisbon (mainland rates), Portuguese tax resident and national, single with no dependants, salary only (category A), calendar tax year 2026. Salaries in Portugal are paid in 14 instalments (12 months plus the statutory holiday and Christmas allowances); all figures here are annual totals, and because IRS is settled on total annual income and social security is a flat uncapped 11%, the year-end result is the same whether the annual salary is paid in 12 or 14 instalments (only monthly withholding differs). Income tax on the 2026 general rates as cut retroactively to 1 January 2026 by Decree-Law 212/2026, with the specific deduction for employment income (the higher of 8.54 × IAS = €4,587.09 and the employee's social security), the solidarity surcharge, and the general family expenses deduction of €250 (reached by almost every taxpayer through e-invoices). IRS Jovem (under-35 relief), the NHR regime and its successor IFICI are not applied. The Lisbon municipal IRS rebate is not applied (see notes).

Sources: [1] [2] [3] Checked 2026-11-08; 2026 rates.