How much do you really earn in Portugal? Analysis of the minimum income, hourly rate, and actual costs in 2025

Working in Portugal is an increasingly common project for Brazilians seeking better financial prospects and quality of life in Europe. But before taking this step, it is essential to understand not only how much you earn nominally but especially what the real income that reaches your bank account after all mandatory deductions is. This article details the complete overview of the Portuguese minimum wage in 2025, including the hourly rate corresponding to these earnings, tax deductions, the expected evolution of salaries, and how the cost of living varies across different regions.

Minimum income in Portugal 2025: numbers and reality

Starting January 2025, Portugal established a new minimum mandatory remuneration level. On the mainland, the set amount is €870 per month for standard 40-hour workweeks.

In the autonomous regions, the scenario is slightly different:

• Madeira: €913.50 per month
• Azores: €915 per month

This adjustment represents an increase from the €820 that was in effect in 2024, reflecting the government’s strategy of gradual alignment with average European salary levels. Despite this, Portugal remains among the countries with the lowest minimum wages within the European Union, according to Eurostat indicators.

For Brazilians doing mental conversions: €870 roughly equals R$5,584, depending on the daily exchange rate. Although it seems attractive by Brazilian standards, it is crucial to consider that the Portuguese cost structure is proportionally higher.

How much does an hour of work cost in Portugal?

A frequently overlooked aspect in analysis is the hourly value of Portuguese work. With the minimum wage of €870 distributed over the standard monthly work schedule:

• Monthly hours: 176 (calculated based on 40h weekly)
• Hourly rate: approximately €4.94
• Part-time (half-time): about €435 per month

For professions with technical or higher qualifications, the hourly rate can multiply significantly — some specialized careers earn two, three, or even four times more per hour worked. This differentiation becomes relevant when evaluating specific job opportunities.

Mandatory deductions: from gross to net

Between the announced salary and the money that actually reaches your wallet, there is a substantial difference, determined by legal deductions.

Social Security: The mandatory deduction is 11% of gross salary, applied universally to all workers. For a salary of €870, this amounts to €95.70 automatically deducted.

IRS (Personal Income Tax): Portuguese tax is progressive and varies according to household composition, number of dependents, and employment status. Although the exemption threshold covers many minimum wage earners, withholdings may occur under certain circumstances.

Practical example of net income:

• Gross salary: €870
• Social Security deduction (11%): €95.70
• Approximate net income: €774.30

If IRS applies, the final amount reduces further, depending on individual tax situation.

Evolution of the Portuguese minimum wage

The Portuguese government has been implementing predictable annual increases as a strategy to valorize labor. The trajectory shows steady growth, with scheduled adjustments until 2026. This movement aims to reduce the disparity with the European average, although Portugal continues to be among the countries with the lowest remuneration bases on the continent.

What are the monthly expenses in Portugal?

Understanding the cost of living is as important as knowing the salary. An individual spends approximately €1,800 per month, while a family of four needs around €3,304.

Portugal ranks as the second most affordable country in Western Europe in terms of overall cost of living, but regional variations are significant.

Typical food:

• Fast food meal: €8
• Mid-range restaurant menu: €12
• 500g chicken: €3.36
• 500g cheese: €4.90

Housing (monthly rent):

• T2 apartment (85m²) in central area: €1,518
• T2 apartment in common area: €1,005
• Studio in common area: €729

Transport:

• Gasoline: €1.69/liter
• Monthly public transport pass: €35

Services and utilities:

• Gym membership: €34
• Electricity + water + gas: €112
• Private medical consultation: €65

Real possibility of subsistence with the minimum wage

The answer is: yes, but with important caveats. Living on €774 (net) in Portugal is feasible, but requires strict budget discipline and depends on specific factors.

In metropolises like Lisbon and Porto, where rents consume 40-50% of available income, the margin for other expenses is significantly reduced. In medium-sized cities or peripheral areas, adaptation becomes more comfortable.

Financial success in this scenario depends on:

• Chosen geographic location
• Shared housing (common strategy among young professionals)
• Personal lifestyle
• Opportunities for rapid professional advancement

Comparison: Portugal versus Brazil from a salary perspective

A Portuguese worker earning the minimum wage receives nominally €870, which roughly converts to R$5,500–5,600 depending on exchange fluctuations. A Brazilian worker earning the minimum (R$1,518) receives a fraction of this amount — less than one-third.

At first glance, Portugal seems infinitely more advantageous. However, the real analysis is more complex.

Disposable income after deductions and essential costs:

In Portugal: €774 (net) minus €1,000 to €1,200 in rent, food, and transportation = little financial margin.

In Brazil: R$1,518 minus proportional costs results in similar or slightly higher availability, depending on the region.

The Portuguese differential arises when considering: salaries in qualified professions, job stability, access to quality public services, social security robustness, and structured professional growth opportunities.

Summarizing the decision

Moving to Portugal as a minimum wage worker is possible but requires careful planning. The decision should not be based solely on the nominal conversion of values but on a holistic analysis that considers:

• Your specific profession and potential salary above the minimum
• The Portuguese city where you intend to reside
• Your tolerance for lifestyle adjustments
• Medium- and long-term professional horizons

For qualified professionals or those with valued experience in the European market, Portugal offers more promising prospects. For those strictly dependent on the minimum wage, the experience will be challenging but feasible with strategic financial management.