How much do people really earn working in Portugal: Unveiling the minimum wage in 2025

Many Portuguese people and immigrants face the same dilemma when evaluating professional opportunities: what is the minimum wage in Portugal, and what truly remains in the pocket after deductions? The answer is not simple, as it depends on the region, the profession, and especially the cost of living.

The minimum wage in Portugal: Numbers that matter

In 2025, Portugal set its minimum wage at €870 per month for the mainland territory. This amount represented an increase from €820 in 2024. In the autonomous regions, the remuneration is slightly higher:

• Madeira: €913.50
• Azores: €915

When converted to Brazilian reais, the Portuguese minimum wage reaches approximately R$5,584, a figure that impresses at first glance but gains perspective when analyzed in the European context and compared with local expenses.

What is effectively left over: Mandatory deductions

The gross amount is not what reaches the bank account. Workers in Portugal face significant deductions:

Social Security: 11% is obligatorily deducted from all employees, representing €95.70 in the case of the minimum wage.

IRS (Income Tax): Applies to earnings above the minimum, varying according to family situation and number of dependents.

Applying these deductions to the €870 minimum wage:

• Social Security deduction: €95.70
• (Net amount )without additional IRS: €774.30

In many cases, IRS reduces this amount even further, leaving the worker with less than €770 at the end of the month. This difference between gross and net is often underestimated by those considering moving to Portugal.

Cost of living: The side of the equation that balances everything

Here lies the critical point: what is the minimum wage in Portugal compared to what is necessary to spend to live?

For an individual: approximately €1,800/month
For a family of four: about €3,304/month

Portugal ranks as the second most affordable country in Western Europe, but this does not mean living comfortably on €770 net.

Typical expenses:

• T2 rent in a prime area: €1,518
• T2 rent in a common area: €1,005
• Studio in a common area: €729
• Executive meal: €12
• Monthly transportation pass: €35
• Electricity, water, and gas: €112
• Gym membership: €34

In Lisbon and Porto, covering housing with a minimum wage is practically impossible. In medium-sized cities, the reality is more feasible, especially if accommodation is subsidized or costs are shared.

Comparison with international realities

When comparing Portugal to Brazil, the differences become more nuanced. Brazil offers a minimum wage of R$1,518 with generally lower deductions, preserving a larger percentage of the gross amount. Portugal pays more nominally but requires much more for essential costs.

For qualified professionals, however, the Portuguese scenario reverses completely. Salaries by profession in areas like technology, engineering, or healthcare are significantly higher in Portugal than in Brazil, creating real opportunities for savings and financial mobility.

Evolution and future prospects

The Portuguese government’s commitment to gradually adjusting the minimum wage reflects a strategy to align with European standards, even though Portugal maintains one of the lowest minimum wages in Western Europe.

Who can live on this wage?

Yes, it is possible, but with significant limitations:

In medium-sized cities, sharing rent and practicing strict budgeting, living on €770 net is feasible. In Lisbon or Porto, this requires substantial sacrifices or additional aid. For students or early-career professionals, the reality is more manageable.

Conclusion: Beyond the numbers

What is the minimum wage in Portugal is a question that deserves a comprehensive answer. It’s not just about €870 gross or €770 net, but about understanding the entire salary ecosystem, opportunities for progression, tax burden, and the specific cost of living in each region.

For those with qualified training and valued experience in the European market, Portugal offers promising prospects in the medium and long term. For those relying strictly on the minimum wage, the experience varies considerably depending on geographic location and personal circumstances. The decision to move to Portugal should be based on a holistic analysis of these factors, not just on nominal value comparisons.