Portugal
Capital: Lisbon
Currency: Euro- EUR
Overview of Portuguese Labor Law and Employment Policies
Employment Law Overview
- Key Legislation:
- Labor Code (Código do Trabalho)
- Social Security Law (Lei da Segurança Social)
- Tax Code (Código Fiscal)
- Legal Characteristics:
- Aims to protect employee rights and promote workplace fairness.
- Sets standards for minimum wage, working hours, vacation, termination, and severance.
Employment Contract Requirements
- Contract Types:
- Fixed-term contracts
- Indefinite-term contracts
- Contractual Provisions:
- Must include job description, remuneration, working hours, termination conditions, etc.
- Language and Currency:
- Contracts must be in Portuguese and currency must be in Euros (EUR).
Working Time Regulations
- Standard Working Hours: 40 hours per week, 8 hours per day.
- Rest Days and Breaks: Minimum of 24 hours of rest per week, 11 hours of rest per day.
Vacation Policy
- Annual Leave: 22 days of paid annual leave per year.
- Public Holidays: 13 national public holidays.
- Special Leaves:
- Sick Leave: 55% to 70% of salary paid, depending on duration and nature of illness.
- Maternity Leave: 120 or 150 days of paid maternity leave.
- Paternity Leave: 28 days of paid paternity leave, 7 days of voluntary paternity leave.
- Parental Leave: 78 or 108 days of paid parental leave for both parents.
Employee Severance and Contract Termination
- Notice Period:
- During probationary period: No notice period
- After probationary period:
- Less than 1 year of service: 15 days
- 1 to 5 years of service: 30 days
- 5 to 10 years of service: 60 days
- Over 10 years of service: 75 days
- Severance Pay:
- 12-18 days of salary per year of service, capped at 12 months.
- Unfair Dismissal Protection:
- Employees have the right to compensation for unfair dismissal.
Tax Law
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Personal Income Tax:
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Salary Range (EUR) Tax Rate 0 - 7,479 14.5% 7,479.01 - 11,284 23% 11,284.01 - 15,992 26.5% 15,992.01 - 20,700 28.5% 20,700.01 - 26,355 35% 26,355.01 - 38,632 37% 38,632.01 - 50,483 43.5% 50,483.01 - 78,834 45% 78,834.01 and above 48%
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Social Security Contributions:
- Employee: 23.75%
- Employer: 26.50%
Health Insurance
- Insurance Policy:
- Employees are required to participate in the national healthcare system.
- Insurance Coverage:
- Provides basic healthcare services.
Compensation and Benefits
- Minimum Wage: €760 per month.
- Salary Structure:
- Typically includes base salary, bonuses, and allowances.
Work Permits and Visas
- Permit Requirements:
- Non-Portuguese citizens from outside the EU/EEA require a work permit or visa.
- Application Process:
- Apply through the Portuguese Immigration and Borders Service (SEF).
Confidentiality and Non-Compete Clauses
- Enforceability:
- Confidentiality and non-compete clauses are enforceable in Portugal.
- Common Provisions:
- Restrict employees from disclosing confidential information or engaging in competitive activities after leaving employment.
Training and Development
- Legal Requirements:
- Employers must provide safety training and opportunities for skill development to employees.
- Government Support:
- Government provides funding and incentives to support employee training.
Workplace Diversity and Inclusion
- Legal Requirements:
- Prohibits discrimination based on race, gender, religion, or other protected characteristics.
- Enforcement Measures:
- Employers must establish policies and procedures to ensure compliance.
Remote Work Policy
- Legal Framework:
- Remote work is supported by law, but employers must comply with certain regulations.
- Tax and Insurance Implications:
- Remote work may impact tax and social security contributions.
Authoritative Website Addresses
- Portuguese Ministry of Labor: https://www.mtss.gov.pt/
- Portuguese Social Security Institute: https://www.seg-social.pt/