Minimum Wage 2024 vs 2025 in Portugal: What's Changed and How It Affects Your Wallet

Portugal continues to attract professionals seeking better living conditions. One of the key factors in this decision is understanding how much you actually earn in the country—especially considering the evolution of salaries from year to year. The minimum wage in Portugal has undergone significant adjustments in recent years, and 2025 was no exception. In this article, we unveil not only the gross numbers but also how deductions work, what the actual net salary is, and whether it makes financial sense to make the move.

Minimum Wage Evolution: 2024 versus 2025

The salary trajectory in Portugal demonstrates the government’s effort to bring earnings closer to the European average, although the country still maintains one of the lowest minimum wages in Western Europe.

In 2024, the minimum wage was €820 per month on the mainland.

In 2025, there was a significant increase to €870 per month — an increase of €50 per month (approximately 6% growth).

In autonomous regions, the amount is slightly higher:

• Madeira: €913.50
• Azores: €915

This increase is part of a deliberate policy of gradual wage revaluation that the government plans to maintain until 2026, signaling commitment to improving the purchasing power of Portuguese workers.

In approximate BRL conversion: €870 = R$5,584.09

Although the amount may seem significant by Brazilian standards, Portugal remains among the European countries with the lowest minimum wages according to Eurostat data. However, salaries vary greatly by sector—many professional careers significantly exceed the minimum wage.

How Compensation Works: Gross vs. Net Salary

Understanding the difference between what is offered and what actually reaches your bank account is essential for realistic financial planning.

Main deductions applied to the minimum wage are:

Social Security (11%) — mandatory for all salaried workers

• Deduction on €870: €95.70
• Salary after this deduction: €774.30

IRS (Personal Income Tax) — applies only to those earning above a certain threshold, varying according to dependents and family situation

Practical example of a worker earning the minimum wage:

• Gross: €870.00
• Social Security (11%): -€95.70
• Amount available before IRS: €774.30
• With IRS withholding (depending on situation): €750-770 (approximately)

Progressive taxation means that the higher the salary, the higher the percentage of tax. However, for earnings close to the minimum wage, the tax burden is relatively light compared to other European countries.

Hourly Wage and Working Hours

With a minimum wage of €870 per month in 2025:

• Standard monthly working hours: 176 hours
• Hourly rate: approximately €4.94
• Part-time work: around €435/month

Qualified professions (engineers, healthcare professionals, tech specialists) often earn between €2,000 and €4,000+ per month — which significantly multiplies the value of each hour worked.

Salaries in Portugal by Professional Sector

Wages vary dramatically depending on the field of work. Here are some examples of monthly earnings for a standard 40-hour workweek:

Public Sector:

• Primary school teacher: €1,200-1,500
• Hospital nurse: €1,400-1,800
• Administrative technician: €900-1,100

Private Sector:

• Programmer/Developer: €1,800-3,000
• Project manager: €1,600-2,400
• Salesperson with commission: €1,000-2,000+
• Skilled worker: €1,100-1,500

Services:

• Store employee: €850-1,000
• Receptionist: €900-1,100
• Security guard: €950-1,200

This variability illustrates why comparing only the minimum wage is insufficient—the profession and experience are key factors.

Actual Cost of Living in Portugal: What Expenses to Expect

According to contemporary cost-of-living data, expenses vary significantly depending on location and personal choices.

Estimated monthly expenses (2025):

• Living alone: €1,800/month
• Family of 4: €3,304/month

Portugal ranks as the 2nd cheapest country in Western Europe, offering a favorable cost-benefit ratio compared to France, Germany, or the UK.

( Breakdown of Main Costs:

Food and Dining:

• Fast-food meal: €8
• Set menu in a restaurant: €12
• Chicken )500g###: €3.36
• Cheddar cheese (500g): €4.90
• Whole wheat bread (500g): €1.50

Housing:

• T2 apartment (85m²) in a prime area: €1,518/month
• T2 apartment in a regular area: €1,005/month
• Studio in a regular area: €729/month
• Deposit: generally 1-2 months’ rent

Transport:

• Gasoline: €1.69/liter
• Monthly public transport pass: €35
• Car insurance (annual): €300-600

Utilities and Services:

• Electricity + water + gas: €112/month
• Internet + TV: €30-50/month
• Gym/fitness center: €34/month
• Private medical consultation: €65
• Hairdresser: €15-25

Is Living on the Minimum Wage Feasible?

The answer is: yes, but with important caveats.

Viable scenarios:

• In secondary cities (Covilhã, Guarda, Castelo Branco), where housing costs are 40-50% lower
• Sharing an apartment
• Without dependents or with family support
• Leading a frugal lifestyle with careful planning

Challenging scenarios:

• Lisbon or Porto (rent alone consumes 50-60% of net income)
• Families with children
• Without prior savings support

A worker earning a net minimum wage of €770 in a large city would have:

• Rent: -€700-800 (T1 in a shared area)
• Food: -€200
• Transport: -€35
• Utilities: -€112
• Result: -€77 to -€177 (deficit)

Therefore, it is technically possible but requires strategic location choice and strict budgeting discipline.

Comparison with Brazil: Broader Context

Understanding the difference between earning in Portugal versus Brazil requires a deeper analysis than simple currency conversion.

Nominal figures:

• Portugal (2025): €870 = R$5,500-5,600 (depending on exchange rate)
• Brazil (2025): R$1,518

At first glance, Portugal pays 3.6 times more. However, this superficial comparison fails to consider actual living costs.

Real net salary (after deductions):

• Portugal: €770 ≈ R$4,500-4,700
• Brazil: R$1,518 (with INSS, IR deductions): ≈ R$1,350-1,400

Purchasing power (examples):

• Rent in Lisbon (T1): 40-50% of net income
• Rent in São Paulo (T1): 30-40% of net income
• Restaurant meal Portugal: €12 vs. Brazil: R$40-60

Conclusion of comparison: Portugal offers a higher nominal salary, but the cost of living is proportionally higher. The real advantage appears for qualified professionals, whose salaries in Portugal often exceed €2,000 per month—an amount rarely matched in Brazil for similar roles.

Future Outlook: Projections until 2026

The Portuguese government has announced continued wage revaluation policies. Expectations:

• 2025: €870 (confirmed)
• 2026: estimated €920-950 (projected increase of 5-7%)

This trajectory suggests Portugal remains committed to raising living standards for workers, gradually closing the gap with the European average.

Final Recommendations for Those Considering Moving

Before emigrating, analyze:

1. Professional sector: what is the average salary in your field in Portugal, not just the minimum wage
2. Location: Lisbon and Porto are 30-40% more expensive; medium-sized cities offer better cost-benefit
3. Tax burden: understand IRS, Social Security, and social benefits
4. Time horizon: short-term (adaptation) vs. medium-term (salary progression)
5. Growth opportunities: how your salary can evolve over the next 3-5 years
6. Initial savings: it is recommended to have 3-6 months of expenses as a safety cushion

For qualified workers with valued experience in the European market, Portugal offers a favorable scenario in the medium to long term. For relying solely on the minimum wage, careful planning and strategic location choice are essential.

The decision should not be based solely on comparing minimum wages between countries but on a holistic analysis: actual profession salary, specific cost of living, quality of life, job stability, and alignment with personal goals.