Employer cost in Portugal at different salaries
| Salary level | Gross salary | Employer SSC | Total employer cost |
|---|---|---|---|
| 67% of AW | 16,250 EUR | 23.8% | 20,110 EUR |
| 100% of AW | 24,254 EUR | 23.8% | 30,014 EUR |
| 167% of AW | 40,504 EUR | 23.8% | 50,124 EUR |
Worked example
The OECD average wage in Portugal for 2025 is 24,254 EUR (about $45,882 in US-dollar purchasing power). On top of that salary the employer pays social security contributions of 23.8%, or 5,760 EUR. That brings the statutory total to 30,014 EUR a year (2,501 EUR a month), or 14 EUR per hour at 2,080 hours. In 2024 the rate at the average wage was 23.8%, so it was essentially unchanged. The rate stays at about 23.8% even at 167% of the average wage, so it scales with pay.
Portugal ranks #11 of 38 OECD countries for employer contributions at the average wage (OECD average: 16.6%). Employer contributions are a substantial extra cost to budget for.
Sources: OECD Taxing Wages 2025, comparative indicators (single worker, no children; average wage as defined by the OECD for each country) and OECD, Non-tax compulsory payments as an additional burden on labour income in 2025 (Tables 5 and 6) for mandatory pension and insurance payments that are not classed as taxes, such as Australian superannuation. Model estimates: voluntary benefits, local caps and sector-specific schemes are not included.
Related
Frequently asked questions
How much does an employee cost in Portugal?
At the OECD average wage of 24,254 EUR, about 30,014 EUR a year including 23.8% employer social security (2025).
What are employer social security contributions in Portugal?
About 23.8% of gross pay at the average wage, 23.8% at 67% and 23.8% at 167% of it (OECD model).