Minimum Wage in Portugal 2025: Purchasing Power Analysis and Financial Feasibility

When it comes to earning in European currency, many Brazilians see Portugal as an opportunity. But how much is really left in the pocket after deductions? And does the purchasing power make it worthwhile? In 2025, the Portuguese minimum wage reached €870 per month, but understanding what that means financially is much more complex than simply converting to reais.

How Much Net Income Remains After Deductions?

Before any enthusiasm, it’s crucial to understand the mandatory cuts. The €870 minimum wage is not what actually enters your bank account:

Main deductions:

• Social Security: 11% — This is the most significant deduction, totaling €95.70
• IRS (Income Tax): varies depending on dependents and family situation — For those earning minimum wage, withholding can be reduced or null in certain cases, but self-employed and freelancers face different taxation

Practical result of deductions: Just taking Social Security into account, the net amount is around €774.30. If there is IRS withholding, this number decreases even further.

Direct Comparison: Portugal vs Brazil — Which Country Pays More?

This is the point of greatest interest for those considering moving:

Portugal pays considerably more in nominal terms, but also requires significantly more to live — especially in major centers like Lisbon and Porto.

The Reality of the Cost of Living in Portugal

Before being dazzled by the salary, see where it goes:

Housing )major expense(:

• T2 apartment )85m²( in a quality neighborhood: €1,518/month
• T2 apartment in a common area: €1,005/month
• Studio in a common region: €729/month

Monthly variable expenses:

• Supermarket )500g chicken: €3.36 | 500g cheese: €4.90(
• Executive meal: €12
• Gasoline: €1.69/liter
• Public transportation monthly: €35
• Utilities )electricity, water, gas(: €112
• Gym: €34

**Estimated total cost )per person(: €1,800/month is a viable minimum.

Autonomous Regions Pay More — But Why?

Madeira and Azores have different salary tables:

• Madeira: €913.50
• Azores: €915

The increase is justified by higher logistical and living costs on these islands. Still, they remain below the major continental centers in terms of professional opportunities.

What is the Real Salary by Profession?

The minimum wage is just a reference. Qualified professionals earn considerably more:

• Software developers: €2,000–3,500
• Nurses: €1,200–1,800
• University professors: €1,800–2,800
• Engineers: €1,600–2,800

For professions requiring specific training, the gap between minimum wage and actual salary is huge — making Portugal much more attractive for those with qualifications.

The Hourly Calculation: How Much Does €870 Mean Per Hour?

Dividing the minimum wage by the standard workweek:

• Monthly work hours: 176 hours
• Hourly rate: ~€4.94
• Part-time monthly: €435

Qualified professions can earn €10–20 per hour, representing multipliers of 2 to 4 times.

Evolution of the Minimum Wage — Growth Trajectory

The Portuguese government has been implementing progressive annual adjustments:

• 2024: €820
• 2025: €870 )increase of €50 or 6.1%(

This policy reflects an attempt to approach the European average, although Portugal remains among the lowest in Western Europe.

Is It Viable to Live on Just the Minimum Wage?

Honest answer: It depends.

In medium-sized cities like Covilhã or Guarda, maintaining a modest lifestyle is possible. In Lisbon or Porto, the situation is much more restrictive. The deciding variables are not just the absolute value, but:

1. Purchasing power after basic needs
2. Access to public transportation or need for a car
3. Health and emergency expenses
4. Career progression prospects

The Complete Context for Those Wanting to Migrate

Migrating to Portugal is not just about comparing numbers in a spreadsheet. Consider:

• Potential salary in your professional field — what is the actual demand for your career?
• Chosen city — Lisbon/Porto consume proportionally more income
• Length of stay — initial experience may differ from long-term
• Support network — costs are significantly reduced with an established local community
• Tax and policy changes — the scenario may evolve in the coming years

Conclusion: Is Portugal Worth It Financially?

The answer is not universal. For those earning only the minimum wage, Portugal offers slightly higher purchasing power than Brazil, but expenses are proportionally higher — marginalizing the nominal advantage.

For qualified professionals, however, the scenario changes dramatically. A developer, engineer, or manager in Portugal can earn 5–10 times more than the minimum wage, providing real financial margin and savings potential.

The best indicator is not the minimum wage itself, but the average salary in your profession compared to the cost of living — this is the calculation that truly determines whether the move pays off in the medium and long term.