Moving to Portugal and hiring a Nanny: all you need to know
Welcome to our beautiful country. Now that you and your family are settled in it is time to start looking for a nanny for your children! Finding a nanny is hard work, so The Nanny Company will provide you a valuable service of screening, interviewing and finding the perfect nanny for your family and we will also help you with your employer responsibilities, walking you through the entire hiring process.
There are some rules to follow if you decide to hire someone on a more permanent basis than a simple babysitting job and it must be done in accordance with the Portuguese law, that’s why we strongly recommended, for the well-being of all, that you declare your nanny to the competent authorities. This is as practical as it is simple and almost free. Indeed, the Portuguese legislation plans a specific scheme for house staff, which includes nannies. This status is more flexible than the general system provided in the Labor Code.
To start you will have to write and sign an employment contract. Regardless of the remuneration conditions of your nanny (fixed-term, permanent, remuneration by the hour, the day or the month), a written proof of the agreement made between the two parties is mandatory. In the event of a dispute, and in the absence of a written contract, the Portuguese law will consider that the employee has a permanent contract. It is therefore more than recommended to establish a written contract in order to avoid any complication.
After both of you have signed the employment contract, you have to advise the Social Security System of the name of the new employer within 24 hours of the start of a contract, by filling in the appropriate form. In Portugal, the Institute for Social Security in Portugal is the gateway to the labor market and is this institution which guarantees a safety net in cases of unemployment, illness and retirement.
Both you and your nanny enrolled in the social security system are required to pay contributions. The rates generally applicable are 22,3% for employers and 11% (deducted at source from gross pay) for employees.
In our country, personal income tax (also known as IRS), is payable on all income received from work during a given year. Income tax assessments are the responsibility of the Tax and Customs Authority (Finanças) and must be made in the year following that in which the income was received, so every year you must submit a specific form (Model 10) by January 31st, stating the amounts paid to your nanny in the previous year, as well as the contributions paid to Social Security and, if applicable, the withholdings made for the purpose of IRS.
Your nanny is also entitled to a 22 days period of paid holidays leave in every calendar year and holiday periods may be slipt, by agreement between you and your nanny, provided that at least 10 consecutive working days are taken at a time. She is also entitled to receive holiday and Christmas pay for each calendar year equivalent to one month’s basic salary.
We know that all this can be a little overwhelming, especially because almost all of these services are only provided in portuguese, that is why we make sure to help you through all the hiring process, providing dedication, thoroughness and value to you and your family.