The Economist warns that the pandemic caused a significant contraction in real GDP in 2020. Structural features of the economy will delay recovery because of its dependence on tourism and low productivity. European policy measures are set to prevent banking or sovereign debt crises from occurring again. The OECD predicts that Portugal’s GDP might increase by 3.7% in 2021 and 4.9% in 2022, with consumption steadily rising as the sanitary situation improves to contain contact-intensive services like tourism until the pandemic is entirely under control; manufacturing will be helped along through vigorous activity due to EU funds being absorbed into investment plans for exports and other projects supporting the growth of this sector across Europe. In 2019, Portugal was ranked #39 in the World Bank’s Ease of Doing Business index. (Sources: The Economist, OECD, and Reuters).
A trusted professional employment organization with in-depth knowledge of the market in Portugal. XML International provides you with end-to-end personalised solutions to recruit and manage remote team members for your activities in Lisbon or any other city in Portugal, regardless of the size of your organisation or your industry.
Employees will be employed pursuant to local labour laws, and all required social security and taxation will be paid to the local Authorities.
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Minimum wage in France is 1555 EUR per Month.
Normal working hours in Portugal are 40 hours per week. OK
Workers are entitled to 22 days of paid leave per year. OK
A woman must take 90 days of her leave after childbirth, and the remainder can be used, wholly or partially, before or after childbirth, making a total of 120 days paid at 100%. It is compulsory to take at least six weeks leave immediately after childbirth. After initial parental leave parents may take an extended parental lave, for a period of three months each. Those extending the leave receive an extended parental allowance or an extended leave adoption allowance, worth 25% of reference pay.
120 days > 100% of the reference remuneration to be received
150 days 80% of the reference remuneration to be received
Shared initial parenting:
150 days (120+30) > 100% of the reference remuneration to be received
180 days (150+30) > 83% of the reference remuneration to be received
30 additional days for each additional twin in addition to the first > 100% of the reference remuneration to be received
In the event of the couple opting for shared leave, the leave period is extended by a further 30 days, paid at 100%. The fact that the parents take initial shared leave does not prevent the father from taking the optional 5 business days leave.
The father is entitled to 20 mandatory business days leave after the birth of his child. The first five days are to be taken immediately after the birth and the other 15 must be taken within six weeks (42 days) of the birth, whether or not they are taken consecutively. The father is also entitled to 5 optional business days, consecutive or not, taken at the same time as the mother.
Notice periods must be observed in cases of
Notice periods vary between 15 and 75 days, depending on the employee’s seniority. The notice period starts on the date of the communication of the decision of the dismissal.
The legal probation periods applicable to open-ended employment contracts (contratos de trabalho sem termo) are:
The legal probation periods applicable to fixed-term employment contracts (contratos de trabalho a termo certo) are:
The standard VAT rate is 23%.
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XML International, one of the best workforce solutions and employer of record services providers for Portugal, supports the set-up and the management of your international workforce for all your activities in Portugal. Our invaluable input consists of streamlining and handling for you the complete employment lifecycle of your teams in Portugal. We give you all the keys to handle you staff in Warsaw or any city in Portugal. XML’s knowledge of labour Portuguese laws, tax and social security system, and employment regulations allows you to tackle the challenges of local compliance in Portugal, navigate all the local complexities and avoid pitfalls.
Among our top priorities, compliance with Portuguese employment regulations and labour laws is number one. In addition to talent acquisition, recruitment services, and workforce management, we also ensure that our clients’ workforce management in Portugal is aligned with Portuguese tax and social security rules and the latest immigration processes, including visas and work permits.
Here is the list of our core services supporting your activities in Portugal.
Take advantage of the targeted outsourcing solutions proposed by XML International for your expansion in Portugal or for your employees already based there. We offer a comprehensive series of bespoke and scalable outsourcing solutions specially designed for the Portuguese market.
They range from professional employer organization employment (PEO), employer of record, and contingent workforce employment services, to help you grow effortlessly and successfully in Portugal without any complications. We can also help you source, recruit, and onboard new team members locally, even if you don’t have an office in Portugal.
XML provides you with everything you need to start doing business in Portugal or to optimize your business if you are already operating there, leading to significant bottom-line savings and getting your business activities up and running in just days. Get in touch with the XML team to learn how we can boost your activities in Portugal in a cost-effective way.
Get started now and make the most of business in Portugal today!
XML has expertise and resources to meet your organization’s workforce needs wherever, and in whichever field these might be.