Employment Cost Calculator Portugal: Understanding Your Hiring Expenses
Expanding your team in Portugal offers numerous advantages, from access to a highly educated workforce to competitive labor costs. However, precise budgeting requires understanding the full scope of employment costs, including salaries, taxes, social security contributions, and additional benefits. An employment cost calculator simplifies this process, enabling companies to estimate their total employment expenses accurately before hiring.
Key Components of Employment Costs in Portugal
Employer of Record (EOR)
The employee's base salary varies depending on the role, experience, and industry.
Employer Social Security Contributions
Employers are required to contribute 23.75% of the gross salary to social security, covering pension, health, and unemployment benefits.
Additional Benefits
These may include bonuses, meal allowances, education, retirement plans, or insurance. Most are taxable with Social Security tax.
Nevertheless, life and health insurance are not taxable, but costs can vary due to age, insurance policy, and so on.
Tax Withholding
Depending on the employee's tax status, withholding taxes on salaries can amount to around 15%, which affects net salaries and payroll processing.
How Our Services Help You
Using our employment solutions in Portugal, you can avoid the complexities of calculating and managing these costs independently. We handle employment law compliance, payroll processing, social security contributions, and benefits management, allowing you to focus on growing your business.
For businesses seeking to hire remote talent or establish operations in Portugal, our detailed employment cost calculator and comprehensive HR services streamline international expansion.
Use our cost simulator to know all the costs.
Looking to budget your Portuguese hires? Contact us today to get a tailored employment cost estimate and discover how our solutions can support your growth in Portugal!
December 09, 2025