How much does it really cost to live in Portugal? Analysis of the minimum wage 2025 vs cost of living

When discussing the possibility of working in Portugal, one question inevitably arises: Is Portugal’s minimum wage in 2025 sufficient to live with dignity? To answer adequately, it is necessary to go beyond the raw numbers and understand the practical financial reality — deductions, rent, food, and, of course, real purchasing power.

Portugal’s minimum wage in 2025: values and adjustments

In 2025, Portugal established a national minimum wage of €870 per month on the mainland, representing an increase from €820 the previous year. In the autonomous regions, the values are slightly higher:

• Madeira: €913.50
• Azores: €915

This adjustment is part of a government strategy of gradual appreciation of the minimum wage, with increases planned until 2026. However, Portugal remains among the European countries with the lowest minimum wages, as evidenced by Eurostat, despite continuous improvement.

Converting to Brazilian reais, Portugal’s minimum wage reaches approximately R$5,584, a value that, while seemingly significant by Brazilian standards, must be analyzed together with local expenses and mandatory deductions.

Deductions and net salary: what is the actual amount received?

The worker earning the minimum wage in Portugal does not receive the full amount. The main deductions include:

Social Security (11%): Mandatory contribution applied to all workers, regardless of income. On €870, it amounts to €95.70.

IRS (Portuguese Income Tax): Applied according to the individual tax situation, number of dependents, and total income. Workers with only the minimum wage often benefit from deductions, but the tax still reduces the final amount.

Applying only the Social Security contribution, the base net salary is approximately €774.30. With the possible application of IRS, this amount can decrease further, depending on each worker’s personal situation.

How much does a professional earn per hour in Portugal?

With a monthly working hours of 176 hours, the minimum wage corresponds to an hourly rate of about €4.94. For part-time work, the calculation would result in approximately €435 per month.

It is important to note that qualified professionals with experience can earn between two to four times this hourly rate, depending on their field of expertise.

Cost structure: food, housing, and transportation

To assess whether the minimum wage covers basic needs, the main components of the family budget are considered:

Food: A meal at a fast-food restaurant costs about €8, while a set menu (prato do dia) varies between €10 and €12. Fresh products like chicken (500g: €3.36) and cheese (500g: €4.90) have moderate prices compared to other European economies.

Housing: This is often the biggest financial challenge. An T2 apartment (approximately 85m²) in a prime area costs around €1,518 per month, while in common zones, rent drops to €1,005. A studio in a standard location can be rented for about €729.

Transportation: Gasoline costs around €1.69 per liter. The monthly public transport pass in large cities costs approximately €35, making it an affordable investment.

Essential services: Monthly gym membership (€34), combined electricity, water, and gas expenses (€112), and medical consultations (€65) complete the basic cost structure.

Comparison: Portugal vs Brazil — a realistic analysis

Superficially, Portugal’s minimum wage of €870 (≈R$5,500-5,600) significantly exceeds Brazil’s minimum wage of R$1,518. However, this nominal comparison masks the reality of available purchasing power.

In Portugal, after mandatory deductions, the worker receives approximately €770 net. In Brazil, deductions are proportionally smaller, allowing a higher percentage of the gross amount to be retained.

The central question is: how much is left to live on? In Lisbon or Porto, rent consumes a large portion of the budget. A family of four needs about €3,304 per month to maintain a comfortable standard of living, while a single person requires approximately €1,800.

Paradoxically, Portugal is the second cheapest country in Western Europe, yet still much more expensive than Brazil. For a worker earning only the minimum wage, the financial margin for leisure, savings, or unforeseen expenses is limited.

Is it feasible to live only on the minimum wage?

The answer is conditional. In smaller cities, away from major urban centers, it is possible to maintain a tight budget with Portugal’s minimum wage in 2025. However, in Lisbon and Porto, this requires strict financial control and often supplementary income through additional work.

For qualified professionals, the situation changes significantly. Careers in technology, health, engineering, and specialized services pay substantially above the minimum, offering a comfortable financial margin.

Final decision: is migrating to Portugal worth it?

Assessing whether moving to Portugal is financially sustainable requires a multifactorial analysis: potential salary in the specific profession, chosen location (medium-sized cities versus Lisbon/Porto), personal lifestyle, and medium-term goals.

For workers who find only opportunities at the minimum wage, the experience will be challenging, though not impossible, especially outside the major centers.

For those with valued qualifications in the European market, Portugal offers stability, robust social security, and quality of life that justify the move, especially considering opportunities for professional advancement and salary growth over time.

The decision should not be based solely on numerical comparisons but on a balanced assessment of the overall context: sectoral labor market, taxation, access to public services, and alignment with long-term personal objectives.