20 Best Employer of Record in Portugal: Reviewed in 2025
Best Portuguese Employer of Record Service Shortlist
Here’s my pick of the 10 best Portugal EOR companies out of the 20 options I’ve reviewed:
Get free help from our HR software advisors to find your match.
Are you interested in tapping into Portugal’s talent pool but feeling intimidated by all the legal requirements? Instead of registering a new legal entity with the Portuguese Commercial Registry (Registro Comercial) and the Portuguese Tax Authority (Autoridade Tributária e Aduaneira), I recommend using an Employer of Record (EOR) service in Portugal to manage all the employment regulations on your behalf.
A Portugal EOR service can help you legally hire, manage, and pay employees based in Portugal with ease. This way, you can access Portuguese talent without having to open a legal entity abroad. Your EOR employees will have local support, and your operations will stay in compliance with Portugal’s Authority for Working Conditions (ACT) at all times. Sounds perfect, right? However, which Portugal EOR service is the best fit for your needs?
To help you narrow down your options, I’ve compiled my research into this list of the best Employer of Record services for hiring in Portugal.
Market Details for Hiring In Portugal
- Capital City: Lisbon
- Currency: Euro (EUR, €)
- Payroll Frequency: Monthly
- Official Language: Portuguese
- Approx. Population: 10.2 Million
- Public Holidays: 13 days
Why Hire Employees in Portugal?
Portugal is a prime destination for companies looking to hire top talent abroad due to its deep talent marketplace in the technology and creative sectors, including a wealth of professionals in IT, software development, engineering, and digital marketing.
The educational system in Portugal is excellent, producing graduates with expertise in data science, AI, web development, and customer service, making it a hub for tech startups and innovation. In addition, Portugal's competitive labor costs and high levels of English proficiency among its workforce make Portugal an attractive market for employing international talent.
What is an Employer of Record in Portugal?
An Employer of Record (EOR) in Portugal refers to a third-party service that legally employs workers in Portugal on behalf of your company. While your organization retains control over these employees’ daily tasks and workloads, the EOR takes on the full legal responsibility for employment. As the legal employer, the EOR assumes full legal responsibility for any new hires. This includes managing payroll, deducting taxes, ensuring compliance with local employment regulations, administering benefits, and handling any other employee-related requirements specific to Portugal.
Partnering with an EOR service is beneficial for companies wanting to hire skilled foreign workers or expand their operations into Portugal since it simplifies this process considerably. Instead of requiring your HR team to master Portugal’s employment laws and regulations, you can delegate these responsibilities to a local EOR in Portugal and gain peace of mind that your global operations will be compliant.
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Best Employer of Record in Portugal: Pricing Comparison Chart
This comparison chart summarizes pricing details for my top Employer of Record selections for hiring staff in Portugal to help you find the best EOR service for your budget and business needs.
| Tool | Best For | Trial Info | Price | ||
|---|---|---|---|---|---|
| 1 |  Deel Deel is a global EOR provider that streamlines contract management and local benefits for employees in Portugal. | Best for offering local health benefits to Portuguese EOR employees | Free demo available | Flat rate user pricing, with a free version for businesses with up to 200 people | Website |
| 2 |  RemoFirst Remofirst aggregates all your EOR employees into one invoice showing each employee’s salary in their local currency. | Best for budget-conscious remote team expansion | Free demo available | From $25/user/month | Website |
| 3 |  Omnipresent Omnipresent's main dashboard provides a clear overview of active employees and new hires. | Best for labor law compliance | Not available | From $100/employee/month | Website |
| 4 |  Skuad Skuad’s HR platform streamlines people and payroll management for your global workforce, including full-time employees and contractors. | Best for hiring and paying talent in Portugal | Free demo available | From $199/employee/month or $19/contractor/month | Website |
| 5 |  Oyster HR Oyster HR offers educational resources to EOR clients, including a virtual assistant and an international support team. | Best for EOR-related educational resources for clients | 30-day free trial | From $25/employee/month | Website |
| 6 |  Papaya Global Papaya Global offers EOR services in Portugal as well as global payroll and workforce management solutions. | Best for an AI-based payroll engine | Free demo available | From $15/employee/month | Website |
| 7 |  Atlas HXM Atlas HXM includes a visual dashboard for tracking employee metrics by foreign location. | Best EOR partner for enterprise organizations | Free demo available | From $595/employee/month or $49/contractor/month | Website |
| 8 |  Horizons Using Horizons you can onboard employees in Portugal in as little as 12 hours. | Best for a flexible EOR contract with no termination fee | Free demo available | Pricing upon request | Website |
| 9 |  Mercans Mercans offers EOR services, plus contractor management and global payroll services in Portugal that are compliant with European labor laws. | Best for an advanced EOR management platform | Free demo available | Pricing upon request | Website |
| 10 |  Velocity Global Velocity Global will manage employment agreements, tax documents, and other legal paperwork on your behalf. | Best for navigating complex regulatory landscapes | Free demo available | Pricing upon request | Website |
How to Choose an Employer of Record in Portugal
An EOR service can solve many different challenges and simplify the process of hiring and managing staff in Portugal. To help you figure out which EOR service best fits your business needs, you need to document your specific challenges first.
As you work through your own unique selection process, keep the following points in mind:
- What problem are you trying to solve? Start by identifying the challenges you're trying to overcome, whether that's sourcing staff within a specific Portuguese district, managing compliance with Portugal’s employment laws and tax regulations, paying employees in Euros, or offering health benefits to your employees in Portugal.
- Who will benefit from the service? Consider who will manage the EOR relationship (i.e., who will your main contact people be in-house?) and how having an employer of record will improve their day-to-day work tasks.
- What is your budget? To evaluate cost, estimate how many employees you anticipate hiring in Portugal. Since EOR providers typically charge a monthly fee for each new hire, this will help you anticipate your monthly costs.
- What outcomes are important? Review the capabilities you want to gain or improve, and how you will measure success. For example, you may want to hire employees in Portugal within a certain district to help your company tap into a new customer base abroad. You could compare service providers until you’re blue in the face but if you aren’t thinking about the outcomes you want to achieve, you could waste a lot of valuable time.
- Would the EOR platform work with your technical requirements? Consider how the service provider's software ecosystem would work alongside your existing workflows and systems. Does their software framework integrate with your existing HR software, or would you face data management roadblocks?
Remember every business is different — don’t assume that a Portuguese employer of record service will work for your organization just because it's popular.
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Deel
Visit WebsiteThis is an aggregated rating for this tool including ratings from Crozdesk users and ratings from other sites.4.8 -
Rippling
Visit WebsiteThis is an aggregated rating for this tool including ratings from Crozdesk users and ratings from other sites.4.8 -
Willo
Visit WebsiteThis is an aggregated rating for this tool including ratings from Crozdesk users and ratings from other sites.4.8
Reviews of the Best Employer of Record Services in Portugal
To help you find the best EOR service for hiring employees in Portugal, I’ve described my top 10 selections in detail, including the specific services each provider offers and how HR teams can use them effectively. Additionally, I’ve listed 10 more EOR service providers for Portugal below if you’d like more options to consider.
Deel
Best for offering local health benefits to Portuguese EOR employees
Deel is a well-established employer of record platform that helps companies rapidly employ workers in 150+ countries, including Portugal.
Deel owns a local entity in Portugal staffed with legal experts to keep track of regulatory changes and ensure all legal obligations are met on your behalf. To hire an employee in Portugal with Deel, the average onboarding time frame is 3 days.
Why I picked Deel: Deel excels as an EOR service provider in Portugal by offering streamlined contract management, ensuring compliance with Portuguese employment laws. Deel also helps organizations offer localized employee benefits for Portuguese staff, including private health insurance, a compensation fund, labor accident insurance, employee training, and social security contributions.
In addition, Deel has launched several new offerings over the past year, including global payroll, global mobility support, integrated Slack tools, and advanced integrations. These services, all combined, facilitate efficient and compliant hiring processes within the Portuguese talent market.
Deel Key Services:
Deel offers end-to-end management for your employees based in Portugal, covering everything from hiring and onboarding to termination. Their web app is user-friendly and provides a range of features to help businesses manage their remote teams effectively, including contract management and expense tracking.
Their integrated contract management function supports advanced customizations such as stipends, signing bonuses, and stock options. You can also use Deel for visa and immigration support if you want to relocate existing employees to Portugal, with Deel managing the entire visa process for your organization in-house.
Deel offers 24/7 customer support and live chat and is known for its fast support.
Pros and cons
Pros:
- Comprehensive employee benefits
- Local compliance expertise
- Fast onboarding process
Cons:
- Potential complexity for first-time users
- Limited customization options
Remofirst is a global EOR service provider on a mission to free employers from geographical boundaries so they can build global teams with ease. They offer EOR services in 180+ countries, eliminating the need to set up multiple legal entities abroad.
Why I picked Remofirst: For companies expanding in Portugal, Remofirst makes hiring local talent straightforward. They ensure compliance with Portuguese labor laws and take care of things like registering employees for social security, managing local tax filings, and ensuring you're meeting all employment regulations. You don’t need to worry about the nuances of Portuguese labor contracts or termination processes—Remofirst handles all of it for you.
It also offers flexibility with both contractors and full-time employees. Whether you’re hiring a contractor for a project or bringing on a full-time employee, Remofirst ensures you’re following the correct legal framework for each type of worker. The service also provides health insurance and other benefits requirements in Portugal.
Remofirst Key Services:
Their team of legal experts and HR professionals will ensure your business operations are always compliant with changing Portuguese regulations, with compliance documentation accessible at all times through your secure dashboard. Their customer support team is also available 24/7 in case you need additional help. All clients also receive a dedicated account manager as their main point of contact.
On top of their EOR services, Remofirst also provides international payroll and invoice management, global benefits management (including insurance and equity plans, plus time-off management), and employee support with obtaining visas and other immigration documentation. They can even help you allocate equipment to your global employees.
Pros and cons
Pros:
- Robust employee support
- User-friendly platform
- Comprehensive compliance management
Cons:
- Service availability may vary by region
- Dependence on third-party providers for some services
Omnipresent is an employer of record (EOR) that helps businesses hire and manage employees across borders. Their services take care of all the legal, payroll, and compliance tasks for you, so you can focus on growing your team in different countries without needing to set up a local entity.
Why I picked Omnipresent: They provide specific services that cater to the country’s employment laws and regulations. For instance, they manage employee benefits that are legally required in Portugal, such as vacation entitlements, social security contributions, and meal allowances. They also ensure your team is compliant with local tax obligations and labor laws, reducing the risk of non-compliance and potential fines.
Omnipresent Key Services:
They handle global payroll, ensuring employees are paid accurately and on time in their local currencies, no matter where they’re located. They also provide benefits administration, so you can offer competitive packages to your employees, including health insurance and retirement plans that meet local standards.
Additionally, Omnipresent supports compliance with global data protection regulations, so your team’s personal data is managed securely. They also provide HR support, which can be particularly useful for businesses that don’t have in-house HR expertise.
Pros and cons
Pros:
- Easy to manage payroll for global teams in one platform
- Handles tax compliance across multiple countries
- Strong local expertise in employment regulations
Cons:
- Slow customer service response times
- Limited flexibility in customizing certain benefits packages
Skuad’s digital HR platform helps global employers hire, pay, and manage employees in over 160 countries, including Portugal. When you hire them as your Portuguese EOR partner, they’ll manage the whole hiring process on your behalf, including creating employment agreements and other legal documents.
Why I picked Skuad: As part of their EOR service, Skuad offers remote hiring and can facilitate payroll in multiple currencies. This includes the management of invoices as well as payroll automation. Skuad also offers robust compliance frameworks for local Portuguese employment laws, including visa and immigration processes, statutory benefits, and tax obligations.
Skuad Key Services:
Skuad's EOR services include remote employee onboarding, employee benefits, time-off tracking, and managing tax compliance. As part of their global hiring service, they’ll handle all the required documentation on your behalf, including work permits and visas for your new hires and their dependents.
Beyond that, Skuad can also help you distribute computer equipment to your new employees, and track company assets like phones and other IT devices.
Pros and cons
Pros:
- User-friendly platform
- Extensive HR support
- Comprehensive compliance management
Cons:
- Possible delays in customer support response time
- Limited customization options
Oyster HR is a global EOR service provider that helps businesses hire employees in Portugal and other countries with full compliance. Their platform is designed to support seamless global expansion with a focus on compliance and employee experience.
Why I picked Oyster HR: Oyster offers educational resources to their EOR clients to help them navigate the global employment landscape. This includes useful financial tools that help you determine the full cost of hiring a new employee in any country, or whether it would be more cost-effective to fill a position with an international contractor rather than an employee.
In addition, the Oyster Academy is a helpful resource for companies that are new to the international work-from-anywhere scene, and includes training courses on ‘how to prepare for distributed work,’ and ‘how to create a company culture in a distributed environment.’
Oyster HR Key Services:
Oyster HR offers a range of features, including streamlined onboarding, payroll, and benefits management, tailored specifically for the Portuguese market. Their platform stands out for its ease of use, compliance assurance, and dedicated support, making it an ideal choice for businesses looking to expand in Portugal.
Their onboarding process is designed to be quick and efficient, helping new hires integrate into their roles smoothly. This feature includes digital contract management and automated document collection, making the entire process hassle-free for both employers and employees.
Pros and cons
Pros:
- Efficient onboarding process
- Strong compliance support
- Comprehensive global benefits packages
Cons:
- Onboarding time for new hires varies
- Limited customization options
Papaya Global is a leading Employer of Record (EOR) service provider with a presence in Portugal. Their platform simplifies the complexities of global payroll, hiring, and compliance, allowing businesses to manage their international workforce efficiently. They offer tailored services for the Portuguese market, ensuring compliance with local regulations and employment laws.
Why I picked Papaya Global: I included Papaya Global in this list because their platform integrates payroll, HR, and compliance into a single, easy-to-use interface, making it simple for businesses to manage their international employees. Additionally, their focus on local compliance ensures that businesses can operate in Portugal without worrying about legal complications.
Papaya’s platform includes a self-guided tour that demonstrates how payroll professionals can use their technology to automate and manage their global payroll quickly and compliantly.
Papaya Global Key Services:
Papaya Global's services include advanced compliance, liability coverage, employee contract lifecycle management, immigration and visa assistance, data security monitoring, and enterprise-grade global payroll processing using an AI-based payroll engine.
Their EOR team also offers additional HR services such as onboarding, benefits management, and employee support. This holistic approach helps businesses provide a consistent and supportive experience for their employees in Portugal, enhancing employee satisfaction and retention.
Pros and cons
Pros:
- Integrated HR services
- Strong compliance management tools
- Comprehensive global payroll solution
Cons:
- Potential delays in customer support responses
- Limited customization options
Atlas HXM offers innovative companies the tools they need to compete in a global economy. As one of the largest, direct EOR service providers, Atlas HXM believes businesses should be able to employ whomever they want, wherever the talent exists.
Why I picked Atlas HXM: They're a popular choice across numerous industries, including non-profits, financial services, oil & gas, energy, life sciences, pharmaceuticals, technology, and government, and they can tailor their service offerings to your needs, whether you're a new startup, an SME, or an enterprise organization.
Atlas is committed to widening the margins of entrepreneurship and employment alike. As such, their business model helps startups and SMBs compete on the international playing field—turning commercial innovations into viable global enterprises. In doing so, Atlas brings opportunities to local economies and the people who work there.
Atlas HXM Key Services:
Services include Portuguese-specific compliance monitoring, employee engagement and productivity monitoring, and guidance on safety programs to minimize business risks.
Their technology platform is supported by international experts who deliver flexible services to companies wanting to expand across borders, including into Europe. Their services can help you onboard talent, manage compliance, and pay your global workforce without requiring a local entity or multiple third-party providers.
Pros and cons
Pros:
- User-friendly platform with localized support
- Comprehensive and customized onboarding
- Extensive local compliance expertise
Cons:
- Initial setup may require significant time and resources
- Limited customization options for specific HR policies
Horizons offers streamlined global HR solutions including EOR and PEO services, international payroll and recruitment, and global mobility & immigration support.
Why I picked Horizons: I included Horizons in this list because their EOR service is cost-effective compared to others, and they offer flexible contract terms. You can end your EOR relationship with them at any time without worrying about costly termination fees or other penalties.
Their Portugal-based EOR services are administered by their local experts who are well-versed in Portugal’s employment laws, including statutory benefits such as vacation leave, maternity leave and paternity leave. Their onboarding process for new employees in Portugal is also very quick, with a minimum onboarding time of just 12 hours.
Horizons Key Services:
In addition to their standard EOR services, they offer additional niche service offerings such as tips for doing business in Portugal, guides to help with global expansion, resources for strategic mergers & acquisitions, and advice on accessing new and emerging markets.
Horizons also provides cultural training and support to help employees integrate seamlessly into their new work environment. This service enhances employee satisfaction and retention by addressing cultural nuances and fostering a positive workplace culture.
Pros and cons
Pros:
- Cultural integration support
- Strong focus on compliance
- Deep knowledge of Portugal labor laws
Cons:
- Service offerings may vary by region
- Dependence on local partners for some services
Mercans is a global EOR provider that offers services in Portugal, including global payroll and other HR solutions. Their services emphasize compliance, local expertise, and seamless integration for businesses expanding into the European market.
Why I picked Mercans: EOR services via Mercans include compliance management and extensive local knowledge, a commitment to personalized service, and access to an advanced technology platform to streamline payroll and HR processes. They stand out for their ability to handle complex employment scenarios, making them a top choice for companies seeking reliable EOR services in Portugal.
Mercans Key Services:
Mercans provides tailored HR solutions to support the diverse needs of each client. This customization ensures that businesses receive support aligned with their unique requirements, enhancing overall employee satisfaction.
Mercans also runs its EOR services from an advanced technology platform that includes real-time reporting and analytics features, giving client companies valuable insights into their global HR operations. This level of data also helps client companies make informed decisions and improve strategic planning.
Pros and cons
Pros:
- Extensive local expertise
- Personalized service
- Advanced technology platform
Cons:
- Integration challenges with some existing systems
- Limited physical presence in some regions
Velocity Global is a well-known employer of record (EOR) and professional employer organization (PEO) provider that simplifies global hiring thanks to its network of on-the-ground experts in 185+ countries, including Portugal.
Why I picked Velocity Global: I included Velocity Global in this list because of their well-known reputation for global EOR services and their expertise in navigating complex regulatory environments. They stand out with their ability to handle intricate regulatory landscapes, ensuring companies can expand efficiently without legal hurdles.
Velocity Global Key Services:
Velocity Global offers comprehensive support for their EOR clients, including everything from onboarding to ongoing HR management, backed by a deep understanding of local employment laws. Key services include payroll, compliance, benefits management, employee training, and risk management for your Portuguese employee operations.
In addition to its EOR services, Velocity Global can also help you simplify your plans for global expansion or offer additional global immigration services in case you want to move international employees to another location.
Pros and cons
Pros:
- Strong understanding of the Portuguese regulatory environment
- Localized payroll management
- Efficient and thorough onboarding process
Cons:
- Pricing details are not transparent
- Limited customization options
Other Portuguese Employer of Record Services
Here are some other EOR service providers in Portugal that didn’t make it into my top 10 shortlist, but are still worth considering:
- Globalization Partners
For an AI-driven global employment platform
- Remote
For competitive and cost-effective benefits packages
- Multiplier
EOR service for quick employee onboarding
- Rivermate
EOR service for managing the local social security system
- EuroDev
For long-term European market entry
- Gloroots
EOR service for small businesses or startups
- Teamed
EOR service for affordable pricing
- Bradford Jacobs
For managing Portuguese payroll taxes
- Boundless
For a percentage-based EOR service mode
- Safeguard Global
EOR service for NGOs and non-profit organizations
Hiring in Portugal: Important Details
Here are some key details to note if this is your first time hiring staff located in Portugal. Your EOR provider will manage these compliance details on your behalf. However, proactively informing yourself of these details is always recommended before you invest your resources into sourcing staff based in Portugal.
In Portugal:
- Employment laws in Portugal are set by the Ministry of Labour, Solidarity, and Social Security (Ministério do Trabalho, Solidariedade e Segurança Social) and various labour courts.
- The legal body that monitors compliance with labor laws in Portugal is called ACT (Autoridade para as Condições do Trabalho).
- You can hire employees (full-time, part-time, temporary, or seasonal) or contractors. Your Portuguese EOR provider can help you determine the best hiring option depending on your needs while helping you prevent employee misclassification problems.
- Portugal has both mandatory payroll deductions and social security contributions that must be collected, including the following:
- Social Security Contribution (Segurança Social)
- Personal Income Tax (IRS - Imposto sobre o Rendimento das Pessoas Singulares)
- Labour Accident Insurance (Seguro de Acidentes de Trabalho)
- Portuguese is the official language in Portugal. However, Mirandese is also officially recognized as a co-official language in some regions, and many professionals also speak fluent English.
- The standard working week in Portugal is 40 hours per week for a 5-day work week. The maximum number of consecutive working days per week is 6 days.
- Overtime is allowed under the Portugal Labour Code and is calculated at an additional 25% for the first hour and 37.5% for subsequent hours on a weekday, and at 50% on weekends and holidays.
- In Portugal, employees are paid monthly, plus they receive a 13th and 14th-month payment. The 13th month payment is given in June (for summer holidays) and the 14th month is given in December (for Christmas).
- Paid vacation in Portugal starts at 22 days of annual leave per year.
- There are 13 national public holidays in Portugal that employees are paid for, plus several regional holidays that are celebrated locally within Porto, Braga, Madeira and Azores. Understanding and complying with employment norms and legal requirements surrounding Portuguese public holidays is one area where your EOR service will shine, managing these occurrences hassle-free on your behalf.
- National public holidays in Portugal include:
- New Year's Day (January 1)
- Good Friday (variable date)
- Easter Sunday (variable date)
- Freedom Day (April 25)
- Labour Day (May 1)
- Portugal Day (June 10)
- Corpus Christi (variable date)
- Assumption Day (August 15)
- Republic Day (October 5)
- All Saints' Day (November 1)
- Restoration of Independence Day (December 1)
- Immaculate Conception (December 8)
- Christmas Day (December 25)
- Portugal offers maternity leave and paternity leave.
- The maternity leave entitlement is 120 to 150 days, beginning up to 6 weeks before the child’s birth.
- The paternity leave entitlement for fathers is 20 days, to be taken within 6 weeks of the birth.
- During these leaves, employees receive 100% of their average earnings paid by Portugal’s Social Security system.
- Paid sick leave in Portugal can stretch up to 1,095 days (over three years), with the Social Security system covering 55% to 75% of the employee's average earnings.
- The probationary period in Portugal varies depending on the type of position. It’s typically 90 days for most employees, 180 days for positions of high complexity, responsibility, or technical nature, and up to 240 days for managerial roles.
- The termination terms in Portugal are mandated by the Portuguese Labour Code. The required notice period ranges from 15 days for employees with less than one year of service to 60 days for those with more than two years of service. This is another area where a local Portuguese EOR can provide assistance to ensure the probation period and related severance are handled correctly.
- Severance pay is mandatory and is calculated based on the employee's length of service, generally amounting to 12 days' base salary for each full year of employment.
Selection Criteria for Employer of Record Portugal
Uncovering the best EOR services for this list required a deep understanding of how these services can alleviate common challenges, such as legally hiring employees abroad, managing international payments, ensuring compliance with local labor laws, providing competitive benefits, and facilitating smooth onboarding.
My approach to choosing the best EOR services is grounded in thorough research into recently published employer of record market data and an understanding of which partnerships would add the most value for organizations hoping to access the global talent market.
Here are the specific criteria I used to carefully compare the service offerings for each provider in this list:
Core Employer of Record Services (25% of total score): To be considered for inclusion in this list, each EOR provider had to offer the following basic services first:
- The corporate structure to legally and compliantly hire employees in multiple countries without a local entity
- The ability to manage cross-border payroll and taxes in compliance with local regulations
- Assistance with offering competitive and locally compliant benefits packages
- Assistance with navigating visa and work permit processes for expatriate employees
- Robust procedures to ensure data privacy and security that comply with international standards, including GDPR and other requirements
Additional Standout Services (25% of total score): To help me narrow in on the best EOR services out of the numerous options available, I also took note of any unique or less common services, including:
- Advanced technology platforms that streamlined payroll and HR processes while still offering ease of use
- Specialized experience in hiring employees within specific new countries or key industries
- Services that enhance remote work compliance and global mobility needs
- Specialized customer support for complex immigration cases
- Assistance with international IT requirements, including managing computer equipment, software licenses, and other asset-tracking requirements
- A focus on eco-friendly and sustainable employment practices
Industry Experience (10% of total score): To evaluate the industry experience of each EOR service provider, I considered the following:
- How many years their business has operated in the EOR space
- Any industry recognitions or certifications the provider may hold in international HR and payroll
- Their depth of knowledge in local labor laws across multiple jurisdictions
- Their expertise in new markets, including how many different countries they offer local expertise in
- Evidence of a strong track record managing global expansion processes
- The combined experience and credentials of their team members, if available
Customer Onboarding (10% of total score): To get a sense of each provider's customer onboarding process, I considered the following factors:
- The availability of comprehensive onboarding materials, such as fact sheets, guides, FAQ repositories, or other training resources
- Support for integrating the EOR provider's software with existing HR systems
- Direct access to onboarding specialists, customer support, or a dedicated account manager during the setup phase
Customer Support (10% of total score): Since the EOR provider will act as your remote workers' legal employer, it's important to ensure you'll receive timely communications and top-level support. To evaluate the level of customer support each company offered, I considered the following:
- The availability of a multilingual support team that covers different time zones
- Multiple support channels, including phone, email, and live chat
- Evidence of responsiveness and effectiveness in resolving issues, as inferred from customer reviews
- The existence of dedicated account managers to provide assistance as needed
Value for Price (10% of total score): To gauge the overall value of each service, I considered the following factors:
- Transparent pricing models without hidden fees
- Comparative analysis of service offerings versus cost
- Flexibility in service packages to suit different business sizes and needs
Keep in mind that EOR services are complicated, and because of that the price tag can sometimes be high. However, the prices for their services still offer a good ROI considering the complexity of the premium-grade services you're gaining.
Customer Reviews (10% of total score): Evaluating customer reviews is the final element of my selection process, which helps me understand how happy real users are with a service. To determine this, I considered the following factors:
- Consistently high ratings across various consumer review platforms
- Specific feedback on the ease of use of the EOR services
- Testimonials highlighting exceptional customer support and problem resolution
Using this assessment framework helped me identify the employer of record services that go beyond basic requirements to offer additional value through unique services, deep industry experience, smooth onboarding, effective support, and overall value for price.
Trends in Employer of Record Services
As more businesses expand across borders, the need for efficient, compliant, and user-friendly solutions for hiring employees abroad, and managing international payments, compliance, benefits, and onboarding has never been more critical. As a result, employer of record services have continued to evolve, with an emphasis on technology-driven solutions that offer flexibility, comprehensive support, and innovative features to facilitate global operations.
Here are the most recent trends affecting EOR services and the HR software systems that are used to offer them:
- Immigration Support: There is a growing demand for assistance with immigration services like visa and work permit sponsorships, simplifying global talent acquisition processes for client companies immensely.
- Specialized Services for Diverse Needs: Several EOR providers have begun to offer IP and invention rights protection and equity incentive planning services, to cater to the specific needs of their client companies.
- Enhanced Employee Benefits Packages: There's a growing trend in EOR providers going beyond standard healthcare coverage to offer a full spread of enterprise-level medical and health benefits, stock options, and even one-time benefits like moving bonuses. This trend demonstrates an understanding of the importance of attracting and retaining top talent globally.
- AI-Backed Knowledge Bases: Some EOR providers (including Deel) are beginning to offer legally vetted knowledge bases or information wikis that use artificial intelligence to surface answers to common questions quickly. This helps customers source details on hiring within a specific country fast, without relying on human-run support systems.
As the market continues to evolve, these trends are likely to shape the future of international employment, making it easier for businesses to navigate the challenges of global expansion. For a closer look at specific EOR providers that are capitalizing on these trends, I recommend reading our in-depth reviews of Oyster HR, Skuad, and Velocity Global.
Key Employer of Record Services
An Employer of Record (EOR) simplifies hiring and compliance in Portugal by managing payroll, tax obligations, and labor laws. Key services include:
- Payroll in EUR: Ensures accurate salary payments in compliance with Portuguese labor laws, including the Labor Code (Código do Trabalho), covering wage rates, overtime, and record-keeping to avoid penalties from labor authorities and the Portuguese Social Security Institute (Segurança Social).
- Tax Compliance and Social Contributions: Handles income tax (Imposto sobre o Rendimento das Pessoas Singulares, IRS) and mandatory social security contributions, including pension, health insurance, and unemployment insurance, ensuring compliance with the Portuguese Tax Authority (Autoridade Tributária) and the social security system.
- Labor Law Compliance: Provides expertise on Portuguese labor regulations, including compliance with working hours, overtime, paid leave, and termination procedures as outlined in the Labor Code, ensureing compliance with regional, national, and international workforce laws and conventions.
- Talent Acquisition and Background Checks: Conducts industry-specific credential verification and background checks to ensure new hires meet Portuguese legal standards and professional certifications.
- Visa and Work Permits: Assists with securing the necessary visas and work permits for non-EU employees, ensuring compliance with the Portuguese Immigration and Borders Service (Serviço de Estrangeiros e Fronteiras, SEF).
- Onboarding and Offboarding: Manages compliant onboarding and terminations in line with Portuguese labor laws, including notice periods, severance pay, and the proper documentation required for terminations, such as the termination statement (Declaração de Cessação de Contrato).
- Benefits Administration: Provides competitive benefits packages, including health insurance, pension contributions, meal allowances (subsídio de refeição), and transportation subsidies, tailored to the Portuguese labor market.
- HR Support: Offers ongoing consultation on Portuguese employment laws, workplace safety regulations, and compliance with mandatory employee-related documentation, such as payroll and social security filings.
- Risk Management and Insurance: Oversees workers' compensation and ensures compliance with local insurance requirements, such as occupational accident insurance and health coverage, mitigating legal and financial risks.
- Multi-Language Support: Facilitates communication with Portugal’s diverse workforce through translation and localization of employment contracts, legal documents, and HR materials.
Benefits of an Employer of Record Service
EOR services are a savvy option for organizations looking to expand their global footprint without the complexities and liabilities associated with international employment laws and practices. For companies contemplating global expansion, understanding the benefits of partnering with an EOR can provide the clarity and confidence you need to move forward.
Here are several benefits you’ll gain by using an EOR service:
- Quick Market Entry: For organizations aiming to test new markets or hire talent in new countries where they have no legal presence, an EOR offers a swift and efficient solution to initiate operations, saving time and resources.
- Simplified Global Payroll: Using an EOR service simplifies the complex process of managing international payroll, including tax deductions, withholdings, and currency conversions for your employees worldwide.
- Global Compliance & Risk Mitigation: By managing compliance, an EOR service provides expertise in navigating the intricacies of employment laws, tax regulations, and insurance requirements in multiple jurisdictions, helping businesses safeguard their operations against compliance-related risks.
- Enhanced Benefits Negotiation: By leveraging their extensive networks and purchasing power, EORs can negotiate better international insurance rates and secure competitive benefit packages on your behalf, enhancing your ability to attract and retain top talent worldwide.
- Improved Cost Effectiveness: Using an EOR service is a cost-effective way for businesses to enter new markets, compared to the significant costs of establishing a new foreign entity. The latter option involves significant upfront legal fees, plus other costs related to office infrastructure, staffing, and local benefits and insurance coverage.
Understanding the benefits of EOR services can help with strategic planning and improving operational efficiency. As businesses look towards international markets for growth opportunities, partnering with an EOR provider offers a streamlined, cost-effective, and compliant pathway to global expansion.
Need more leverage to convince your leadership about an EOR? Focus on hiring foreign workers’ costs and their streamlined process for global recruitment.
Costs & Pricing for Employer of Record Services
Typically, the cost of an EOR service follows a fee per-employee, per-month pricing model, which can vary widely depending on a range of factors. This model allows for scalability and predictability in budgeting for international expansion efforts.
In general, EOR services in Portugal cost between $199 to $2,000 per employee, per month.
Key factors that can influence the pricing of an employer of record service include:
- Geographic Location: Costs can vary significantly based on the country or countries you're hiring in. This is due to local economic conditions, labor laws, and the complexity of compliance requirements.
- Employee Seniority and Role Complexity: The level and nature of the roles being filled can also impact the monthly cost. Senior positions or roles requiring special qualifications may increase the price due to higher benefits and compensation management costs.
- Number of Employees: The total number of employees being managed can also impact the cost. In some cases, higher volumes may lead to volume discounts, making per-employee costs more economical.
- Custom Requirements: Any specific needs beyond the standard service offering may also contribute to the monthly cost. This may include customized solutions for recruitment, specialized employee onboarding, or unique compliance requirements, all of which can affect pricing.
Some EORs also operate under different pricing models, including a percentage of employee salary model, a fixed pricing model, and custom pricing models. If you'd like to delve deeper into the different factors that influence prices, my article explaining the intricacies of common EOR pricing structures is a natural next step.
When considering an EOR service, it is crucial to understand how these factors impact the overall cost to ensure that the service aligns with your business's needs and budget constraints. Anticipating the specific requirements of your international expansion strategy will help you choose the most cost-effective and efficient EOR solution for your needs.
FAQs about EOR Services in Portugal
If you’ve got specific questions about the requirements to hire Portuguese employees or how EOR services work, these answers to frequently asked questions are a good place to start:
What does an Employer of Record do?
An Employer of Record (EOR) service provider is a third-party entity that can help an organization hire a new employee in a country where it has no physical presence. It’s a useful service for businesses that are expanding internationally but don’t have physical offices established yet, or don’t ever plan to establish them. In these situations, the EOR provider becomes the legal employer of your remote staff on your behalf.
In this type of partnership, the EOR service provider deals with local employee-related matters such as managing payroll, deducting taxes, and administering the onboarding process for new employees. This allows organizations to access global talent while reducing their legal liabilities and compliance risks. This is because the EOR company assumes the legal responsibility for your international new hires on your behalf.
What are the minimum wage requirements in Portugal?
As of January 2024, the minimum wage in Portugal increased to €820 per month. This amount is the same across all age groups and for all regions in mainland Portugal. The regions of Madeira and the Azores have slightly different minimum wage rates due to the higher cost of living in these areas, with Madeira’s minimum wage at €850 per month and the Azores at €861 per month.
Portugal’s minimum wage is calculated over 14 monthly payments per year, including two additional payments made in June and December, known as the summer and Christmas bonuses. When spread over 12 months, the minimum wage is effectively higher, averaging around €956.66 per month.
Do EOR providers offer other types of global HR services?
Yes, most of the time they do. Many service providers in this space also offer professional employer organization services (also known as PEO services), as well as global payroll services.
PEO services are a way of outsourcing your HR function to support your international teams. PEO companies can help you with international compliance issues, benefits administration, workers’ compensation, and other HR administrative tasks.
Global payroll services allow you to easily pay remote employees or independent contractors within a unified payroll run. They manage in-country compliance requirements and juggle payments in multiple local currencies on your behalf.
To dive even deeper into this topic, read our article covering other types of global HR services to figure out the best fit for you.
What are some of the consequences of non-compliance?
As an organization, you never want to be deemed as non-compliant in the eyes of any government body. The exact rules and regulations will vary according to the jurisdiction you’re operating in, which is one of the main benefits of using an EOR service provider.
If you don’t use an EOR and you do hire international workers, you may quickly find yourself in non-compliance. The consequences of doing so will depend on the severity of the violation, but they could include all of the following:
- Fines and penalties
- Legal actions such as lawsuits or other litigation proceedings
- Corrective measures and compliance orders
- Revocation of business licenses or operating permits
- Reputational damage if the news becomes public (loss of public trust and loss of internal employee respect)
- Increased monitoring and additional government scrutiny
Companies who fail to follow international labor laws cannot simply say they were unaware of the legalities, and hence, didn’t follow them. That’s where an EOR service can really remove a lot of potential risk and liability from the international hiring process.
To brush up on your compliance best practices, have a quick read through our 2025 HR Compliance Guide.
Are there any risks to using an Employer of Record service?
In the world of business, nothing is ever 100% risk-free, and that is true for EOR services as well. While EOR services do offer substantial advantages, here are some of the risks you should also be mindful of as you choose the right partner for you:
Financial risks:
- Hidden costs and service fees: Some EOR providers may charge additional service fees for specific tasks, such as processing documents, onboarding or offboarding employees, or providing additional HR advice.
- Mandatory benefits: Some countries require mandatory benefits for employees. In that case, the EOR will charge you for those benefits in addition to the employee salary and their service percentage, which can add up.
- Currency fluctuations: Exchange fluctuations can impact the cost of payroll and other financial transactions as the strength of a currency you’re using goes up or down.
Operational risks:
- Data security: Since you’re entrusting sensitive employee data to your EOR, you’ll want to consider the strength of their data protection practices and policies, including their incident response plans, IT penetration testing, and data management certifications, such as ISO 27001.
Strategic risks:
- Loss of control: You will need to relinquish some degree of control over the workforce management processes of your EOR employees, which may impact your organization’s strategic decision-making capabilities.
- Brand reputation: Any negative actions, incidents, or practices of your chosen EOR can directly impact your organization’s brand reputation and create a negative employee experience if not handled properly.
For a deeper dive into this topic, read our comprehensive analysis of EOR risks, including strategies to mitigate each potential issue upfront.
What is a nearshore vs offshore employee?
A nearshore employee is based in a country closer to the company’s location, typically within the same or a nearby time zone, making collaboration and communication easier due to the smaller time difference.
For North American companies, nearshore remote workers may reside in Canada, the Caribbean, or Central or South America.
An offshore employee is located in a country far from the hiring company’s home base, often in a different time zone, to capitalize on cost savings and increase access to a broader talent pool.
For North American companies, offshore remote workers may reside in Asia, Africa, or Europe.
Gain Access to the Best Talent with an EOR in Portugal
If you made it this far, I hope you have a better sense of how EOR services can simplify the process of hiring Portuguese employees. They're truly a valuable resource, whether you're an enterprise organization looking to snap up the top talent in Portugal, or a small business or startup trying to break into the Portuguese talent marketplace without launching your own entity.
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