Question 1

How much does an employee cost beyond salary in Portugal?

Accepted Answer

On average, an employee costs about 24-25% above gross salary: 23.75% employer Social Security (TSU) plus work-accident insurance (~1%). Holiday and Christmas subsidies and, where applicable, the meal allowance add on top. The FCT/FGCT fund has been abolished and no longer applies.

Question 2

What is the employer TSU?

Accepted Answer

It is the company contribution to Social Security: 23.75% of the worker remuneration, paid monthly by the employer, on top of the 11% deducted from the worker.

Question 3

Does the meal allowance have employer costs?

Accepted Answer

The meal allowance is a full cost to the employer. Only the part above the exempt limit (EUR 6.00/day in cash or EUR 10.20/day on a card) is subject to TSU.

Question 4

Do holiday and Christmas subsidies count toward the cost?

Accepted Answer

Yes. They are two extra months of salary per year and are subject to TSU, so they must be included in the annual hiring cost.

Question 5

How can I reduce hiring costs?

Accepted Answer

With charge-exempt benefits (meal card, health insurance within limits), the IRS Jovem regime for workers up to 35, and public hiring support.

Hiring Cost Calculator 2026

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