As your business grows in a new country, you'll have to learn about the local expectations of employers and what they can and should provide for employees. When you develop your Portugal...
Read MoreAs your business grows in a new country, you'll have to learn about the local expectations of employers and what they can and should provide for employees. When you develop your Portugal employee benefits plan, keep your company compliant and competitive in the labor market by and researching economic conditions and following best practices.
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As your business grows in a new country, you’ll have to learn about the local expectations of employers and what they can and should provide for employees. When you develop your Portugal employee benefits plan, keep your company compliant and competitive in the labor market by and researching economic conditions and following best practices.
Creating a competitive benefits package can make your business stand out in the labor market and encourage more job seekers to work for you. A well-developed plan can also improve employee morale and promote higher retention rates.
You can give your company a competitive edge with supplemental or fringe benefits. Possible offerings include:
While fringe benefits will make your open positions more appealing in the labor market, you’ll also need to consider the country’s required provisions. As an employer, you must provide:
Your goal for benefits planning is to remain within your company’s abilities while recognizing your employees’ needs. You can achieve this balance by following a few basic steps.
Before you decide what benefits to provide, you need to understand what your company can afford. Take time to assess your revenue along with your existing expenses to create a benefits budget.
It’s also helpful to clarify your goals during this step. You might be able to use your benefits to meet them. For example, you can build out your benefits packages and slow recruitment to focus on current workers if you want to improve your retention rate.
Your benefits plan will only be competitive if it reflects market standards and meets employees’ needs. To understand the local labor market, you should research businesses in the area that are similar to yours. Consider aspects like industry and size when you explore other companies.
Job seekers are more likely to work for you if your benefits packages represent their needs. You can perform interviews and distribute surveys to workers in your region to understand what provisions employees expect and which ones they appreciate the most.
With the information you’ve gathered about your company, the market and the workers in your area, you can design a plan. Start by allocating funds to required provisions like meal allowances and 13th-month bonuses. Use your remaining funds to cover some of the top benefits you learned about in your research.
Every company’s benefits plan looks different based on several factors, from size and location to industry. As a result, the average price of benefits packages might not be a useful metric in your planning. Instead, you can create a budget based on your available resources and scale it as your company grows.
Benefits calculations will vary based on the provisions you offer, but you will find guidance for required benefits in the labor laws. In the case of social security contributions, the employer and employee both contribute a set percentage of an employee’s income. Employers must contribute 23.75 percent, and employees contribute 11 percent.
Generally, benefits in kind offered by an employer are considered taxable income on the employee’s end. Some benefit types, such as housing, share plans, and company cars, come with additional taxation policies.
For example, company cars are only taxable if there is a written agreement between the employer and worker. The taxable income of a company car is 75 percent market value multiplied by the number of months the employee uses the car.
Portugal’s healthcare system has three levels — publicly funded care, specialized care for specific industries, and private care. Social security contributions will cover some types of health care for your employees, but private insurance options are still available.
As an employer, you’re not obligated to provide supplemental health insurance for workers. That said, you might choose to offer a private scheme if other companies in your industry and area are doing so.
As your business grows in a new country, you’ll have to learn about the local expectations of employers and what they can and should provide for employees. When you develop your Portugal employee benefits plan, keep your company compliant and competitive in the labor market by and researching economic conditions and following best practices.
Creating a competitive benefits package can make your business stand out in the labor market and encourage more job seekers to work for you. A well-developed plan can also improve employee morale and promote higher retention rates.
You can give your company a competitive edge with supplemental or fringe benefits. Possible offerings include:
While fringe benefits will make your open positions more appealing in the labor market, you’ll also need to consider the country’s required provisions. As an employer, you must provide:
Your goal for benefits planning is to remain within your company’s abilities while recognizing your employees’ needs. You can achieve this balance by following a few basic steps.
Before you decide what benefits to provide, you need to understand what your company can afford. Take time to assess your revenue along with your existing expenses to create a benefits budget.
It’s also helpful to clarify your goals during this step. You might be able to use your benefits to meet them. For example, you can build out your benefits packages and slow recruitment to focus on current workers if you want to improve your retention rate.
Your benefits plan will only be competitive if it reflects market standards and meets employees’ needs. To understand the local labor market, you should research businesses in the area that are similar to yours. Consider aspects like industry and size when you explore other companies.
Job seekers are more likely to work for you if your benefits packages represent their needs. You can perform interviews and distribute surveys to workers in your region to understand what provisions employees expect and which ones they appreciate the most.
With the information you’ve gathered about your company, the market and the workers in your area, you can design a plan. Start by allocating funds to required provisions like meal allowances and 13th-month bonuses. Use your remaining funds to cover some of the top benefits you learned about in your research.
Every company’s benefits plan looks different based on several factors, from size and location to industry. As a result, the average price of benefits packages might not be a useful metric in your planning. Instead, you can create a budget based on your available resources and scale it as your company grows.
Benefits calculations will vary based on the provisions you offer, but you will find guidance for required benefits in the labor laws. In the case of social security contributions, the employer and employee both contribute a set percentage of an employee’s income. Employers must contribute 23.75 percent, and employees contribute 11 percent.
Generally, benefits in kind offered by an employer are considered taxable income on the employee’s end. Some benefit types, such as housing, share plans, and company cars, come with additional taxation policies.
For example, company cars are only taxable if there is a written agreement between the employer and worker. The taxable income of a company car is 75 percent market value multiplied by the number of months the employee uses the car.
Portugal’s healthcare system has three levels — publicly funded care, specialized care for specific industries, and private care. Social security contributions will cover some types of health care for your employees, but private insurance options are still available.
As an employer, you’re not obligated to provide supplemental health insurance for workers. That said, you might choose to offer a private scheme if other companies in your industry and area are doing so.
Get in touch with our team today to discuss our international benefits support.
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