LEGAL INSIGHTS

In Portugal, companies are required to pay monthly contributions to Social Security (TSU – Taxa Social Unica) over gross monthly salaries: employees will see deducted a 11% flat rate from their salary and the employer will pay 23.75% over that amount, handing 34.75% in total to Social Security if no incentives to hiring apply.

The same principle applies to remunerated managers. However, if managers prove that they are already contributing to a social security system in Portugal or abroad, both will be exempt from contributions (even so, absence of proof will lead to social security contributions being charged, whether or not managers are being paid).

Remunerated board members holding non-executive positions are equally subject to Social Security: in this case, the company will pay 20.30% and the individual 9.3% over the gross monthly salary, based, at least, on the amount set yearly for IAS – Social Support Index (€ 509.26 in 2024), even if the salary is in fact lower.

For further information or assistance with labor topics or tax and social security associated matters, please contact us through geral@sbpslegal.com.