Earning in Portugal in 2025: What is the Minimum Wage, Deductions, and the Reality of the Cost of Living

Whoever considers working in Portugal often faces a crucial question: Is the salary worth it? The answer isn’t simple, because it involves not only how much you earn nominally, but also how much actually remains in your pocket after mandatory deductions and, most importantly, how much it costs to live in different parts of the country. In 2025, the Portuguese salary landscape underwent significant adjustments that alter this equation. In this article, we analyze the real numbers — gross and net — and compare them with the Brazilian reality to provide a clear view of whether the move is truly worthwhile.

The Portuguese Minimum Wage in 2025: Updated Numbers

On the Portuguese mainland, the minimum wage reached €870 per month in 2025, marking an increase from €820 in 2024. In the autonomous islands, the figures are slightly higher: Madeira offers €913.50 and the Azores, €915 per month.

Converting to Brazilian reais, this amount is approximately R$5,580 to R$5,650, depending on the exchange rate at the time. At first glance, the amount seems substantial when compared to Brazil’s minimum wage of R$1,518 in 2025(, suggesting a difference of more than three times. However, it is essential to understand that this numerical disparity does not necessarily reflect a proportional financial advantage, as the cost of living in Portugal also scales accordingly.

Within the European Union, Portugal remains among the countries with the modestest minimum wages, behind economies like Germany, France, and Ireland. Still, the Portuguese government has been implementing annual increases as previously planned, with projections of new adjustments until 2026, demonstrating an effort to gradually approach European average standards.

What Really Counts: Mandatory Deductions

The financial reality for Portuguese workers involves two main deductions that significantly reduce the gross amount received.

Social Security Deduction )11%(
This is a mandatory deduction applied universally. On a €870 minimum wage, it amounts to €95.70 deducted monthly, reducing the net to €774.30.

Portuguese Income Tax )IRS(
Those earning above the minimum wage are subject to IRS, which varies according to income brackets, number of dependents, and family situation. The system is progressive, meaning the higher the income, the higher the rate.

Applying both deductions, a worker earning the Portuguese minimum wage will have a net income close to €770 per month — nearly 11% less than the initial gross amount. For comparison, in Brazil, a minimum wage worker faces smaller percentage deductions, proportionally retaining more of the gross income.

Professions in Portugal: Much More Than the Minimum

Compensation varies considerably depending on the professional field. Specialized technicians, engineers, healthcare professionals, and jobs in the technology sector earn significantly above the minimum wage, often between €1,200 and €3,000 per month or more, depending on experience and sector.

To get a sense of hourly pay: with the €870 minimum wage divided by 176 monthly hours )40 hours per week(, the worker earns approximately €4.94 per hour. Qualified professions can earn between €10 and €20 per hour, creating a substantial difference.

Living in Portugal: How Much Does It Really Cost

The cost of living in Portugal is considered the second most affordable in Western Europe, behind only some Eastern European countries. However, this classification is relative and varies greatly depending on the location.

Essential Expenses:

A single person needs approximately €1,800 per month to maintain a comfortable standard of living, while a family of four requires around €3,300. These figures include housing, food, transportation, and basic services.

Food: A menu in a popular restaurant costs €12, chicken (500g) costs €3.36, and cheese (500g) costs €4.90. Fast food in common neighborhoods ranges between €7 and €8.

Housing: This is the big challenge. A two-bedroom apartment )T2( in a desirable neighborhood in Lisbon or Porto costs between €1,500 and €1,800, while in more affordable areas, it can be around €1,000. A studio in a typical area costs about €700 to €750 per month.

Transportation: The monthly public transport pass in major cities is €35, and gasoline costs €1.69 per liter.

Services: Gym membership €34, electricity + water + gas €110 to €130, private medical consultation €65.

The Central Question: Is It Possible to Live on Just the Minimum Wage?

The answer is: yes, but with important caveats.

In smaller interior cities, where rent can be 50% cheaper than in Lisbon, living on €870 is feasible, especially if the worker can find more affordable housing and control expenses on food. However, it requires strict discipline and access to additional benefits )government aid, family support, or specific subsidies(.

In large metropolises — Lisbon and Porto — living solely on the minimum wage is challenging. Even with a net income of €770, after paying rent )€900 to €1,100 in shared areas(, only €-130 to €-330 remain negative. This equation only balances out with additional aid, cohabitation, or if rent does not exceed €600 — a scenario increasingly rare in these cities.

Portugal vs Brazil: Which Offers Better Financial Conditions?

This is the comparison most relevant to those deciding where to work.

In Nominal Terms: Portugal pays 3.5 times more )€870 vs R$1,518(.

In Actual Disposable Income: After deductions, Portugal offers about €770 per month versus R$1,300 to R$1,400 in Brazil )where percentage deductions are lower(. Portugal’s advantage remains, but reduces to approximately 2.3 times.

After Essential Costs: In small Portuguese cities, a person spending €1,000 monthly on housing, food, and transportation ends up with a negative balance. In Brazil, a minimum wage worker, even in large cities, can cover basic expenses with some margin.

The Advantage of Qualified Professions: Here, Portugal significantly outperforms. A specialized professional in Lisbon earns between €1,500 and €3,500 per month, while in Brazil, the reality is much more modest. For those with higher education or experience, Portugal offers much higher long-term salary potential.

When Is Portugal Worth It

Portugal makes financial sense for:

• Qualified professionals: Engineers, doctors, programmers, designers — occupations with real demand in the Portuguese market.
• People with additional income: Freelancers, consultants, or professionals earning in other currencies while living in Portugal.
• Those seeking quality of life beyond salary: Security, quality healthcare, political stability, and personal development opportunities compensate for the more modest income.

Portugal is not attractive if:

• You need to send money to Brazil or rely solely on the minimum wage.
• Your goal is to accumulate capital quickly.
• You lack any professional qualification valued in the European market.

Conclusion: The Decision Goes Beyond the Numbers

Choosing between working in Portugal or staying in Brazil is not just about comparing the minimum wages. It involves a multifactorial analysis: salary potential in your specific profession, cost of living in the city where you will actually live )don’t generalize(, tax deductions and benefits, as well as intangible factors like safety, quality of life, and long-term professional development opportunities.

In 2025, Portugal’s minimum wage of €870 continues to attract Brazilians, but the reality is that most who achieve financial stability in Portugal do not live on that amount — they earn more because they have a qualified profession. For those earning only the minimum wage, living in small towns or relying on additional support is necessary.

If you are considering a move, start by researching how much professionals in your field earn in Portugal, choose cities where the cost of living is more manageable, and honestly assess whether your skills will be valued in the European market. Only then will your decision be secure and financially sustainable.