Minimum Order 2024-2025 in Portugal: Analysis of Net Income and Actual Expenses

Understanding compensation in Portugal is essential for anyone considering relocating to the European country. This article examines not only the nominal values of the minimum wage but also the actual purchasing power after taxes and the cost landscape in major cities.

The Portuguese Minimum Wage in 2025: Updated Values

The minimum wage in Portugal for 2024 reached €820 per month, while in 2025 the country implemented a new adjustment to €870 per month in the mainland. This increase reflects the government’s commitment to gradually align wages with the European average.

In the autonomous regions, the floor is slightly higher:

• Madeira: €913.50
• Azores: €915

Converted to Brazilian reais, the 2025 amount is approximately R$ 5,584, but this gross amount undergoes significant deductions before reaching the worker’s account.

Deconstructing a Payslip: Mandatory Deductions

The Portuguese net salary differs substantially from the gross due to two main withholdings:

Social Security (11% mandatory): This contribution is universal for all employees, totaling €95.70 in the case of the minimum wage.

IRS (Income Tax): Applied progressively, varying according to family status, professional situation, and dependents. Workers at the minimum wage with simple family situations usually receive reduced withholding.

Example of breakdown:

• Gross: €870
• Social Security deduction: €95.70
• Tax-free base salary: €774.30
• After possible IRS: ~€770 (estimate)

The difference between the announced amount and what actually enters the account may surprise those evaluating the change based solely on nominal figures.

Historical Context: Progression of the Minimum Wage

The trajectory of the 2024 minimum wage in Portugal demonstrates a systematic revaluation policy. Portugal, despite consistent increases, remains among European countries with the most modest floors—particularly when compared to Nordic or Central European nations. Still, the annual progression reflects political determination to approach continental standards.

Salary Variations by Professional Sector

Remuneration in Portugal varies significantly depending on profession and experience:

Specialized technicians can earn between €1,200 and €1,800, while professions requiring higher qualifications (engineering, medicine, law) often exceed €2,500. Professionals with international expertise or prior experience in developed economies tend to negotiate above these levels.

The hourly wage at the minimum salary (176 hours per month) is approximately €4.94, while specialists can triple or quadruple this hourly rate.

Cost of Living in Portugal: Beyond the Surface

The cost of living in Portugal is the second most affordable in Western Europe, but this statistic masks regional realities:

Housing is the largest expense. A T2 apartment in Lisbon or Porto ranges between €1,000 and €1,500, while in smaller cities it drops to €700-€900. Studios in peripheral areas start at €600.

Food has a moderate cost: fast food at €8, daily menu in a restaurant at €12, protein and dairy products between €3 and €5 per 500g.

Mobility costs approximately €35 monthly (public transport pass) or €1.70 per liter (gasoline).

Essential services (electricity, water, gas combined) cost around €110 monthly; gym €34; private medical consultation €65.

Financial Compatibility: Living on the Minimum Wage

Technically, it is feasible to subsist on €870, but:

• In Lisbon and Porto, strict budget control, housing in peripheral areas, and renouncing discretionary consumption are required
• In medium-sized cities (Braga, Covilhã, Viseu) it becomes more comfortable
• Inland regions offer substantially lower living costs

Dependent children and medical expenses not covered by SNS significantly increase financial pressure.

Comparative Analysis: Portugal versus Brazil

The Portuguese paradigm offers a nominal income 3.6 times higher than the Brazilian minimum wage (€870 versus R$1,518), but the cost of living scales accordingly. After deductions, the Portuguese worker keeps about €770, while the Brazilian retains proportionally more of the gross salary.

The real advantage lies in:

• Professional qualification: Specialists earn 2-4x more in Portugal
• Institutional security: Labor rights, guaranteed pension, SNS
• Progression opportunities: Intra-European mobility, subsidized training
• Currency stability: Euro versus real in consistent deterioration

The favorable Portuguese scenario consolidates mainly for workers with valuable experience in the European market, not for those who will only receive the minimum wage indefinitely.

Recommendations for Those Planning to Move

Evaluating a transfer to Portugal goes beyond superficial numerical comparison:

1. Validate your professional salary: Research specific remuneration for your career (not just the minimum)
2. Locate strategically: Lisbon/Porto require €2,000+ for comfortable living; inland areas allow €1,200
3. Understand taxation: Portuguese IRS varies according to family composition — simulate your personal scenario
4. Assess professional security: Labor demand in your sector, ease of renegotiation
5. Time horizon: Planning for 3-5 years maximizes growth opportunities

Summary

Portugal remains attractive for work relocation, especially for qualified professionals. The 2024 minimum wage in Portugal proved insufficient to sustain a high standard of living, particularly in urban centers, but opens possibilities for specialized segments. The decision should holistically consider sectoral salary potential, geographic location, actual taxation, and medium-term personal goals.