Hire Employees & Contractors


Compliantly hire your distributed team members in


Person working on laptop

Hiring in


isn't so simple. Borderless can help.

To hire new employees in


, your business must have a local legal entity or an Employer of Record like Borderless in place already. Then there’s the management of local employment compliance, taxes, benefits, payroll, and more. Hiring contractors poses similar challenges.

Borderless handles all of that for you, so you can focus on getting to work with your new team member in


while staying fully compliant with local laws and compliance.

Primary Language



Euro (€, EUR)

Payroll Frequency


Public Holidays

13 days

Employer Taxes


Cost of Living Index

45.4 (66 of 140)

Statutory Leave

22 days

Sick Leave

Up to 1095 days

Maternity Leave

Up to 150 days

Important: Risks of misclassification

In many countries like


, the treatment of employees and contractors is different. If you misclassify a new team member, you could be subjected to penalties and fines. Let Borderless get this right for you, so you don’t have to worry.

Payment Information

Minimum Wage

As of March 2023, it’s been fixed at EUR 886.70 per month.

Overtime Pay

Anything work over the 40 hours is considered overtime. Employees can work a maximum of 2 hours of overtime per day. For overtime hours, employees are paid:

  • 125% for the first hour.
  • 137.5% for the following hours.
  • 150% for weekends and bank holidays.

Additional Pay

In Portugal, employees get 14 months of salary payments each year:

  • 12 months of work
  • 1 Holiday allowance
  • 1 Christmas allowance

The allowances are paid with the same amount as a full month's salary.

Employees have the option of receiving 12 payments, with the extra two being pro-rated.

Payroll Cycle

For all Borderless customers, all employee payments will be made in equal monthly installments on or before the last working day of each calendar month, payable in arrears.

Employer Costs & Taxes

  • 23.75%: Social Security
  • 1.75%: Labour Accident Insurance
  • 1.00%: Wage Guarantee Fund (WGF)

Employee Costs & Taxes

  • 14.50%: 0 to 7,112
  • 25%: Up to 10,732
  • 28.50%: Up to 20,322
  • 35%: Up to 25,075
  • 37%: Up to 36,967
  • 45%: Up to 80,882
  • 48%: From 80,883

Employment Information

Termination Process

The reason for termination can be the following: 

  • Retirement
  • Non-renewal or expiry of the employment contract
  • Termination with just cause
  • Collective dismissal due to economic reasons
  • Termination by mutual consent.

Notice period

Notice varies on the length of service: 

  • For employment less than 6 months, the notice period is 15 days
  • Between 6 months and 2 years, the notice period is 30 days
  • Longer than 2 years, the notice period is 60 days

Probation Period

Probation varies on the contract type:

  • 15 days for fixed-term contracts shorter than 6 months
  • 30 days for fixed-term contracts longer than 6 months
  • 90 days for indefinite contracts
  • 180 days for complex positions of high responsibility

Severance Details

Termination based on redundancy or unsuitability for the job require severance

  • For indefinite term contracts, severance is 12 days of salary per year of service up to 12 months of base pay
  • For fixed-term contracts, severance is 18 days per year of service
Benefits of working in a country abroad

Borderless Benefits Packages in


When the world is your competition, it pays to incentivize new hires and existing alike. Borderless benefits packages typically include:

Medical Insurance
Dental Insurance
Vision Insurance
Life Insurance
Retirement Contributions

Learn how to hire quickly and easily in


Book your demo of Borderless to help you hire, pay, and take care of new employees and contractors in 170+ countries.

Book a demo