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Very short-term Duration lower than 15 days |
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Fixed-term* Duration > 6 months, < 2 years*** |
Creating a company in the North of Portugal
6. Hiring people
In terms of the admission of workers, the labour contract depends on the duration, schedule and the type of activity, based on a minimum salary defined by law and other existing salary supplements (subsidies).
Which labour contract is most adequate to your needs?**
Salary
The salaries shown vary depending on the industry
Pay supplements
Subsidies are exempt from IRS (income tax) up to a certain limit and typically, they are used as a method of payment
Which labour contract is most adequate to your needs?**
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Partial Schedule shorter than full-time |
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Teleworking The employee works outside the workplace using technology |
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Intermittent Interim work, for a minimum of 4 consecutive months |
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Indeterminate Very short-term duration Duration up to the completion of the Duration lower than 15 days contracted activity |
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Indefinite duration Contract outside the scope of the remaining categories |
Salary
The salaries shown vary depending on the industry
| Minimum salary | €580 |
| Average salary | €846 |
| Holiday + Christmas Pay | Compulsory allowances of a value corresponding to the monthly salary in July and December, or paid monthly (twelfths) |
Pay supplements
Subsidies are exempt from IRS (income tax) up to a certain limit and typically, they are used as a method of payment
| Food allowance | €4,77 per day of work (any greater value is subject to IRS and Social Security) |
| Other allowances (subsistence allowance) | Travel, per diem, accommodation |
A company needs to assure the security of its workers according to the activity, work accidents and civil liability, as well as the registry and payment of the worker’s contributions to Social Security.
Compulsory insurance
Compulsory insurance
Every worker must be secured in 2 aspects
| Types of insurance |
| Work incident insurance, personal incident and support |
| Civil responsibility insurance |
Every activity has a specific insurance and the cost varies depending on the risk
Social Security
What is it? A system that aims to assure basic rights to citizens as well as equal opportunities and promote wellbeing and social cohesion for all Portuguese or foreign citizens that work or live in the Portuguese territory.
Note: For certain groups (eg. very short-term contracts), the rule applied is changed to adjust the income concerned by the taxes.
What is it? A system that aims to assure basic rights to citizens as well as equal opportunities and promote wellbeing and social cohesion for all Portuguese or foreign citizens that work or live in the Portuguese territory.
Responsibilities
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Registering the workers in Social Security |
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Paying part of the worker's contributions to Social Security |
Contributions payable and calculation
In general, a contribution rate is applied on top of the workers’ gross pay
| Type of entities | |
| Profit-making entities | |
| Non-profit entities | IPSS (Private Institution of Social Solidarity) |
| Other entities | |
| Employer | Worker | Global |
| 23,75% | 11% | 34,75% |
| 22,3% | 33,3% | |
| 22,3% | 33,3% |
Note: For certain groups (eg. very short-term contracts), the rule applied is changed to adjust the income concerned by the taxes.
Labour Compensation Fund (FCT) and Labour Compensation Warranty Fund (FGCT)
What is it: FCT and FGCT are compulsory funds aimed at assuring the rights of workers to effectively receiving half the amount of the compensation due for the termination of the employment contract.
Responsibilities:
- Registering the worker in FCT and FGCT
- Payment of a 1% contribution over the base remuneration of the worker on a monthly basis (0.975% for the FCT and 0.075% for the FGCT)
The labour relations between workers and employers are firstly mediated by the Labour Code and the Constitution of the Portuguese Republic, which grant justifications for legal absences and other rights.
What is it: FCT and FGCT are compulsory funds aimed at assuring the rights of workers to effectively receiving half the amount of the compensation due for the termination of the employment contract.
Responsibilities:
- Registering the worker in FCT and FGCT
- Payment of a 1% contribution over the base remuneration of the worker on a monthly basis (0.975% for the FCT and 0.075% for the FGCT)
The labour relations between workers and employers are firstly mediated by the Labour Code and the Constitution of the Portuguese Republic, which grant justifications for legal absences and other rights.
Legal absence
| Type of absence | |
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| Justified* | Marriage, illness, accident and legal obligation | Death of partner/family member, family support and travel to educational establishment. | Collective representation of the workers, candidate to public office and assessment tests. | Authorised or approved by the employer |
| Unjustified | Can give rise to dismissal with just cause if severe damage or risks are determined for the company or if they reach 5 consecutive days or 10 interpolated days in each civil year. | |||
| Type of absence | |
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Justified: Marriage, illness, accident and legal obligation |
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Justified: Death of partner/family member, family support and travel to educational establishment. |
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Justified: Collective representation of the workers, candidate to public office and assessment tests. |
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Justified: Authorised or approved by the employer |
| Unjustified: Can give rise to dismissal with just cause if severe damage or risks are determined for the company or if they reach 5 consecutive days or 10 interpolated days in each civil year. | |
Rights
In Portugal, the Constitution of the Portuguese Republic and the Labour Code establish the legal base to rule labour relations between workers and employers. For that reason, it is important to note some of rights enjoyed by workers (public and private sector):
In Portugal, the Constitution of the Portuguese Republic and the Labour Code establish the legal base to rule labour relations between workers and employers. For that reason, it is important to note some of rights enjoyed by workers (public and private sector):
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Right to equality and non-discrimination of the access to jobs and in the workplace |
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Right to provide service in safety and health |
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Right to strike |
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Right to freely renounce the Labour Contract during the trial period |
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Right to create, in the company, a workers commission that defends their rights |
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Right to repair damage arising from accidents at work or occupational diseases |