What is the Minimum Wage in Portugal in 2025: The Complete Financial Guide

Understanding how much you earn in Portugal is essential for any professional considering working in the European country. The Portuguese minimum wage has undergone significant adjustments and reached €870 per month in 2025, reflecting a consistent policy of valorização. This guide analyzes not only gross values but also actual deductions, effective purchasing power, and how different cities impact your monthly budget.

The Current Value: What is the Minimum Wage in Portugal?

In 2025, what is the minimum wage set by the government in Portugal? The Portuguese minimum wage is fixed at €870 per month in the mainland region, showing growth compared to €820 in 2024. Autonomous regions apply slightly different values:

• Madeira: €913.50
• Azores: €915

This increase is part of a schedule of planned adjustments until 2026, aiming to keep pace with inflation and improve workers’ living standards.

Conversion to Reais

For Brazilian professionals, conversion is particularly relevant:

➡️ €870 corresponds to approximately R$ 5,584

This figure may seem attractive from a nominal perspective; however, Portugal remains among the countries with the most modest minimum wages in the European Union, according to Eurostat records. The financial reality depends less on the absolute value and more on the local cost structure.

Mandatory Deductions: How Much Do You Actually Receive?

Net salary differs significantly from gross amount due to mandatory deductions imposed by Portuguese law:

Social Security: 11% of gross pay is compulsorily withheld for the social security system. This deduction applies to all workers without exception.

Portuguese Income Tax (IRS): Varies according to annual income, number of dependents, and family situation. Those earning strictly the minimum wage often avoid this deduction, while higher earners face progressive rates.

Practical Calculation of Net Salary

Taking the minimum wage as a reference:

• Gross monthly amount: €870
• Social Security deduction (11%): €95.70
• Base net salary: €774.30

If IRS applies, the available amount decreases further, depending on the total income bracket during the fiscal year.

Salary Growth Trajectory

The Portuguese minimum wage has shown an upward trend in recent years, reflecting government efforts to raise remuneration standards. Although positive, Portugal still remains distant from the most developed economies of Western Europe, where minimum wages exceed €1,500 in several countries.

How Much Does It Really Cost to Live in Portugal?

The cost of living is the key factor in assessing financial viability. According to independent expense surveys:

Estimated Monthly Budget:

• One person: €1,800
• Family of 4: €3,304

Portugal ranks as the second most affordable country in Western Europe, behind only Bulgaria and Eastern European countries.

Typical Expense Breakdown

Food:

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

Housing (monthly rent):

• T2 apartment (85m²) in a prime neighborhood: €1,518
• T2 apartment in a common area: €1,005
• Studio in the outskirts: €729

Transport:

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

Utilities and Services:

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

Professions and Salaries: Beyond the Minimum Wage

Remuneration in Portugal varies substantially depending on qualification and sector. Specialized professions earn between two to four times the hourly rate of the minimum wage. With €870 monthly and a standard 176-hour workweek, the hourly wage is €4.94.

Workers with technical training, international experience, or specific certifications secure positions offering €1,500 to €3,000 per month, completely changing the financial equation.

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

It is technically possible to live earning the Portuguese minimum wage, but with important caveats:

Factors that facilitate:

• Medium-sized regions (Covilhã, Guarda, Viseu) where rent is lower
• Frugal lifestyle
• No dependents

Factors that complicate:

• Major cities (Lisbon, Porto) where rent consumes 60-70% of income
• Need for frequent commuting
• Unexpected or medical expenses

In metropolises, €774 net with minimum rent of €1,005 creates a budget deficit. In secondary cities, it becomes more feasible.

Portugal Versus Brazil: Income Comparative Analysis

Comparing minimum wages in both countries reveals important nuances often overlooked:

Nominal values in 2025:

• Portugal: €870 (≈R$ 5,500-5,600 depending on exchange rate)
• Brazil: R$ 1,518

Portugal pays nominally 3.5 times more, but the structural costs are also proportionally higher. Rent, food, and services in Portugal absorb a similar percentage of gross income compared to Brazil.

Differences in salary structure:

• Portugal: 11% mandatory Social Security deduction; progressive IRS
• Brazil: generally lower deductions, leaving a higher percentage of gross

Disposable income after essential expenses:

• Portugal (Lisbon): often negative or close to zero
• Brazil (São Paulo): slightly positive with careful management

Compensation for qualified professionals: Portugal offers a significant advantage. Professions with demand (IT, nursing, construction) pay €1,800-€3,500, creating a substantial economic differential compared to the Brazilian market.

Informed Decision: When Is Moving Worth It?

Migration to Portugal requires multifactorial analysis:

Favorable for:

• Qualified professionals in in-demand sectors
• Those seeking regulatory stability and public healthcare
• Individuals willing to invest in additional training

Unfavorable for:

• Workers limited to the minimum wage
• Those needing to send remittances to Brazil
• People with difficulty adapting linguistically

The decision goes beyond simple numerical comparison. Examining specific salaries by profession, exact regional costs, total tax burden, and career advancement prospects provides a more solid basis for decision-making.

Conclusion

What is the minimum wage in Portugal in 2025? €870 per month, a positive movement in Portuguese wage policies but still modest within the European context. For qualified or experienced professionals, Portugal presents an attractive scenario. For those earning the minimum wage, viability depends on smaller cities and requires strict budget discipline.

Choosing to work in Portugal should consider not only the minimum wage but also the potential real earnings in the chosen profession, the precise regional costs, and actual opportunities for advancement. This holistic analysis provides a solid foundation for a safe and financially sustainable migration.