All About Offering Employee Benefits in Portugal
Hire the best talent in Portugal with the information you need to offer a competitive benefits package and stay compliant.
Required Benefits in Portugal
Portugal has some of the most comprehensive compensation and benefits packages for employees in the European Union. Understanding which benefits Portuguese employees expect and value can help you attract top talent and stay compliant.
Social Security
Through Portugal’s mandatory social security system, employees can receive benefits that cover sickness, maternity/paternity/adoption leave, diseases, and workers compensation, disability, old age, and death. Employees pay 11% into their social security, while employers pay 23.75%.
Time Off
Portuguese employees are entitled to at least 22 paid days of vacation time. Other mandatory leave includes public holidays, maternity and parental leave, sick leave, bereavement leave, carer’s leave, and other miscellaneous leave.
Bonus Payments
Employees are legally entitled to 13th and 14th-month salaries as part of the employee’s annual salary. The 13th-salary should be paid before the commencement of vacation, typically paid in June, while the 14th-salary must be paid by December 15.
Offer Competitive Benefits
A great employee benefits package can help employers attract the best Portuguese talent. Here are supplemental benefits and perks to consider offering for a happier and healthier team.
Employer-Sponsored Benefits
Public health insurance is mandatory for everyone in Portugal and paid through their social security. Regardless, potential employers should strongly consider offering private healthcare coverage to provide access to better and more flexible care options.
Transportation Expenses
While not necessary in all industries, company cars can be a great incentive for employees who may have to drive far or need a car for their day-to-day business. Employers may also want to offer transportation stipends for their commute.
Productivity Bonuses
Many employers give employees productivity bonuses to encourage success. If an employee feels like their work is being valued and rewarded, they are much more likely to exceed expectations.
Remote or Flexible Work
While offering remote work may not be accessible in all industries, giving employees the option to work-from-home enables more flexibility. Some employers also offer flexible working hours as a productivity bonus for top performers.
Housing Stipends
Housing in Portugal can be expensive, especially in Porto and Lisbon. Giving employees housing allowances can help offset rising rent prices.
Ready to Offer Benefits in Portugal?
Justworks EOR makes building your global team seamless by helping you access localized benefits to attract top talent in Portugal. Simplify international hiring today.
