Payroll in Portugal - Ask for Complete Services for Your Company

Payroll in Portugal

Updated on Monday 01st August 2022

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Payroll in Portugal
Companies operating in Portugal must comply with the accounting rules imposed in this country. Payroll in Portugal is part of them and involves several aspects, including the payment of taxes by the employee and employer, payment of salaries, etc. We invite you to discuss with our lawyers in Portugal if you want to benefit from a payroll provider in Portugal.

Information about payroll in Portugal

Payroll in Portugal is necessary for any company with economic activities in this country. It all starts with the registration of employees in the company and ends with the effective payment of their salaries. Let's review some important aspects of payroll in Portugal. We also remind you that, if you need Portugal payroll service, you can contact our specialists:
  • Payroll in Portugal involves calculating the salaries of employees in a company. Special programs are used to calculate the taxes paid to the state, by the employee and the employer.
  • Before the payment of salaries, payslips go directly to the management for approval.
  • Salaries will be paid according to the regulations imposed by the employer, weekly, monthly, or bimonthly.
  • A payroll provider in Portugal has access to employees' accounts, in order to be able to pay their salaries.
  • According to employment regulations, payroll processing in Portugal takes into account working hours, holidays, sick or maternity leave, compensation, etc.
If you need a payroll provider in Portugal, you can contact our team. We have experienced accountants who can take care of payroll for your company in Portugal.

Taxes paid by employers and employees in Portugal

Both employees and employers must pay certain taxes to the financial authorities of the country. Among these, we mention:
  • Social security contributions are paid by the employer (23.75%) and the employee (11%). These taxes go to the pension, disability, and unemployment funds.
  • Covering occupational accidents means paying a tax rate of 23.75%.
  • Labor accident insurance is 1.75% and is paid by the employee.
  • 1% represents the wage guarantee fund and is also a tax withheld from the employee's salary.
  • Income tax of 28% is paid by non-residents in Portugal. However, this tax varies and can reach up to 48% for earnings over EUR 80,882.
  • There is also a solidarity charge paid by those who exceed earnings of EUR 80,882. This is between 2.5% and 5%. The latter is imposed for earnings exceeding EUR 250,000.
Considering these taxes, payroll in Portugal is made once the social contributions are paid. We remind you that if you are interested in the Portugal payroll service, you can get in touch with our team of specialists.

Human resources services in Portugal

In addition to the services mentioned above, payroll in Portugal also involves human resources services. This involves recruiting and hiring staff, personnel administration, and drafting employment contracts, and documents for employees who leave the company. Also, a payroll provider in Portugal can offer you specialized consultancy in the employment field, to be able to align with the requirements of the legislation.

Why choose payroll outsourcing in Portugal

You can choose a payroll provider in Portugal in exchange for an entire department to deal with these aspects. You will benefit from such professionalism and security that payroll in Portugal respects the requirements imposed by the authorities. In addition, Portugal payroll service can have much more advantageous costs, compared to a department involved in such activities.
Therefore, if you want a lot of information about payroll in Portugal, we invite you to contact our law firm in Portugal. We are here to offer you all the necessary support for the company you own.