Running payroll in Portugal requires monthly calculations, timely Social Security (Segurança Social) contributions, IRS withholding remittances, and accurate employment documentation. Each step has a fixed calendar and specific submission requirements.
Our payroll service manages this process on behalf of businesses employing staff in Portugal. We handle the monthly payroll run, all statutory submissions, and the employment documentation your business needs to stay compliant — and we communicate everything in English.
We calculate gross and net pay for each employee each month, applying the correct IRS withholding tables and any applicable deductions.
We prepare and submit the monthly DMR (Declaração Mensal de Remunerações) to Segurança Social, covering both employer and employee contributions.
We calculate and process the monthly IRS withholding payment to the Autoridade Tributária on your behalf.
We prepare employment contracts, salary receipts (recibos de vencimento), and any documentation required under Portuguese labour law.
We submit the annual Modelo 10 and any other year-end declarations required by law.
Employers are required to calculate and pay employee salaries monthly, withhold IRS at source, and pay both employer and employee Social Security contributions. Monthly declarations are submitted to Segurança Social and the AT. We manage this entire process on your behalf.
The current standard rates are 23.75% employer contribution and 11% employee contribution, calculated on gross salary. Rates may vary for specific categories of employment. We apply the correct rates for each employee each month.
Yes. Payroll calculations for part-time employees follow the same process as full-time, adjusted for contracted hours and applicable rates.
First, work with a labour attorney to get an employment contract created; this is an often overlooked step that can result in large costs when the employee leaves – we can connect you with a trusted parter if needed. We will register the employee with Segurança Social, collect tax-impacting information from the employee, register all of the important information from the contract and employee, and ensure everything is in place before the first pay run.
Yes. We prepare the required documentation for employment termination — including the Modelo RT and any accrued holiday or severance calculations — in accordance with the Código do Trabalho. We recommend consulting with a labour attorney for complex situations to ensure that business owners have the best possible outcome in these situations.
Talk to us about managing payroll for your team in Portugal.
