Payroll and Social Security Updates in Portugal for 2025

As we prepare for 2025, significant updates to payroll, social security premiums, and tax regulations in Portugal are set to take effect. At Parakar, we are committed to ensuring that your payroll systems are fully updated and compliant with these changes. Below, we’ve outlined the key updates to help you stay informed about what to expect in the coming year.

Payroll changes for 2025

• Minimum wage increase: The national minimum wage will increase to €820 per month, reflecting the government’s commitment to improving the earnings of low-income workers.
• Employer contributions: Remain at 23.75% of gross wages, covering pensions, healthcare, and other benefits.
• Employee contributions: Remain at 11% of gross wages.
• Income tax adjustments: Tax brackets have been adjusted to account for inflation, benefiting middle-income earners. Deductions for healthcare and education costs remain unchanged.
• Corporate tax rate reductions: The corporate tax rate is set to decrease to 20%, aiming to stimulate economic growth and incentivize business investments.
• Tax filing deadlines: The deadline for filing personal income tax returns is March 31 of the following year.

How Parakar supports you

At Parakar, we ensure:

• Seamless payroll updates: We will integrate all legislative changes, including tax adjustments and wage indexing, into your payroll systems.
• Compliance assurance: Our team actively monitors Portuguese labour and tax regulations to keep your operations compliant.
• Employee communication: We provide clear and accurate information to your employees regarding changes affecting their pay.
• Custom support: Tailored advice for managing payroll complexities and ensuring compliance with local laws.

Grow with Parakar in Portugal

At Parakar, we don’t just manage payroll, we’re your partner in business growth. Explore our range of services.

• HR Consultancy: Need help with employment contracts, compliance, or employee management? We’re here to support.
• Payroll Consultancy: Facing payroll challenges or looking to optimize operations? Let us guide you.
• Employer of Record (EOR): Simplify international hiring without the need for local entities.
• Payroll & HR full service: Ideal for international businesses seeking a seamless HR and payroll solution across multiple countries.

Let Parakar help streamline your operations, improve compliance, and unlock growth opportunities. If you’re ready to take advantage of our services or have questions about these updates, reach out to Parakar today. Together, we’ll ensure your payroll runs smoothly and your business thrives in 2025 and beyond.