Working in Portugal: Understand the Minimum Wage in 2025 and the Actual Cost of Living

Many Brazilians dream of relocating to Portugal, but few truly understand what it means to live with the local values. The biggest challenge is not just knowing how much you earn, but comparing that with actual expenses and mandatory deductions that come out of your salary. This article uncovers the numbers behind the Minimum Wage in Portugal for 2025, analyzes the impact of taxes, and offers an honest perspective on financial viability.

How Much Is Actually Earned in Portugal in 2025?

The Minimum Wage in Portugal on the mainland has been set at €870 per month for 2025, representing an increase from €820 in 2024. In the autonomous islands, the values are slightly higher:

• Madeira: €913.50
• Azores: €915

Converted to Brazilian reais, these amounts reach approximately R$5,500 to R$5,600, depending on exchange rate fluctuations — a figure that initially seems attractive when compared to the Brazilian minimum of R$1,518. However, this superficial analysis ignores a crucial point: what matters is not the gross amount, but what actually enters your account after deductions and what remains after paying bills.

The Deductions Nobody Talks About

The Portuguese reality includes two layers of mandatory deductions that significantly reduce income:

Social Security: 11% mandatory retention

This applies to all workers, regardless of salary level. A €870 Minimum Wage in Portugal suffers a reduction of €95.70 just from this item.

Portuguese Income Tax (IRS) (Imposto de Renda Português): Progressive according to personal situation

Unlike Brazil, Portuguese IRS does not only apply to high earnings. Although there are exemptions for very low incomes, most salaried workers start to have withholding taxes close to the minimum, especially if they have no dependents.

Practical scenario:

• Gross minimum wage: €870
• Social Security deduction (11%): -€95.70
• Salary after Social Security: €774.30
• Estimated IRS for single person (: -€30 to €50
• Final net salary: approximately €724 to €744

This amount, in reais, represents about R$4,600 to R$4,750 — still higher than the Brazilian minimum, but the advantage margin diminishes considerably.

The Trajectory of the Minimum Wage in Portugal: A Gradual Growth Policy

Recent years reveal a government strategy of approaching European standards, although Portugal maintains one of the lowest wage floors in Western Europe. This progression reflects both internal political pressures and supranational commitments to wage convergence within the European Union.

The Real Cost of Living in Portugal: Where Your Money Goes

The second half of the equation — how much it costs to live there — is often underestimated by potential migrants. According to independent cost of living analyses:

Estimated monthly expenses:

• Single individual: €1,800
• Family of 4: €3,304

Portugal ranks as the second most affordable country in Western Europe, but that doesn’t mean cheap in absolute terms.

) Breakdown of Typical Monthly Expenses

Food:

• Fast food meal: €8
• Lunch at a regular restaurant: €12
• Chicken ###500g(: €3.36
• Cheese )500g(: €4.90

Housing )greater budget share(:

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

Transport:

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

Utilities and Services:

• Electricity, water, and gas combined: €112
• Gym membership: €34
• Private medical consultation: €65

Critical analysis: A net salary of €724 versus a minimum expense of €1,800 reveals an obvious gap. Those earning only the minimum heavily depend on shared housing or subsidies to sustain their stay.

Direct Comparison: Minimum Wage Portugal vs. Brazil — What Changes?

Comparing the two countries is often reduced to a simple currency conversion, which is a serious analytical mistake.

Nominal figures:

• Portugal 2025: €870 )≈ R$5,500-5,600(
• Brazil 2025: R$1,518

Available income scenario )after mandatory deductions and minimum expenses(:

In Portugal, deducting social security and IRS, plus a conservative estimate for housing )€730 in a peripheral zone( and basic food )€300(, leaves approximately €30-50 for all other expenses — a virtually nil margin for emergencies or savings.

In Brazil, a minimum wage worker, although with limited purchasing power, can have a proportionally lower cost of living in categories like food and transportation, depending on the region. Also, the imposed deductions tend to be slightly lower percentage-wise.

The uncomfortable truth: Portugal offers higher nominal wages but also higher living costs. The financial advantage is concentrated in qualified professions, where salary differentials are substantial.

Salary by Profession: Where Are the Real Opportunities

The narrative changes completely when considering professions above the minimum:

• Nurses: €1,400-1,800
• Engineers: €1,800-2,500
• IT specialists: €2,000-3,500
• Managers/Supervisors: €1,600-2,200

Qualified professions earn two, three, or even four times the minimum wage, drastically changing the financial equation and making Portugal genuinely attractive.

Hourly Rate and Work Hours

With the Minimum Wage in Portugal set at €870:

• Standard monthly work: 176 hours
• Approximate hourly rate: €4.94
• Part-time work: €435 per month )88 hours(

Specialized professionals can earn €12-20 per hour or more, significantly increasing savings capacity.

Is It Feasible to Live Only on the Minimum Wage in Portugal?

The honest answer is: it depends, but it’s complicated.

Key factors:

• Location: Lisbon and Porto require extreme budget planning. Smaller cities like Covilhã, Guarda, or Aveiro offer greater feasibility.
• Lifestyle: Sharing housing, avoiding paid leisure, and maintaining austere eating habits are necessary.
• Support network: Family support or access to social benefits significantly alters the scenario.

Practical viable example: In a medium-sized city, with shared housing )€400(, controlled food )€300(, transportation )€35(, and utilities )€112(, total €847 — consuming almost all net income. Medical emergencies or unforeseen expenses leave the person vulnerable.

What Makes Sense: Who Should Consider Portugal?

Portugal presents real financial opportunity for:

1. Qualified professionals — Engineers, IT, healthcare, specialized education reap substantial gains, especially if coming from Brazil where their salaries were proportionally lower.

2. Career transition individuals — Opportunity for retraining in expanding sectors with increasing pay.

3. Entrepreneurs — Manageable living costs allow reinvestment of profits as the business grows.

4. Individuals with additional resources — Passive income, prior savings, or family support subsidizing initial months.

Portugal poses significant challenges for:

• People relying solely on the Minimum Wage in Portugal without additional qualifications
• Large families with dependents )costs multiply(
• Individuals without a support network that facilitates shared housing access

Conclusion: A Decision Beyond Numbers

The Minimum Wage in Portugal for 2025, although nominally higher than the Brazilian one, alone does not justify migration. The real analysis must include:

• The salary potential of your specific profession in the Portuguese market
• The cost of living in your chosen city )differences up to 40% between Lisbon and smaller cities(
• Total tax burden and access to social benefits
• Prospects for professional advancement in the medium and long term
• Personal and family support network

For qualified workers or early-career individuals with growth potential, Portugal offers an attractive scenario of stability, robust social security, and quality of life. For those relying solely on the minimum wage, the experience will be one of constant austerity, especially in major metropolises.

Sustainable relocation to Portugal depends not on simplistic comparisons of figures, but on honest analysis of your personal situation, professional capabilities, and willingness to adapt your lifestyle during the country’s integration phase.