Minimum Wage in Portugal 2024-2025: Detailed Analysis of Salaries, Deductions, and Cost of Living

Since 2024, the minimum wage in Portugal has been increasingly attracting the attention of Brazilian professionals considering relocation. With the adjustment implemented in 2025, reaching €870 per month, Portugal maintains a trajectory of salary appreciation that deserves attention. This article provides an integrated analysis of real earnings, tax burden, and financial sustainability in the main Portuguese cities.

Recent Evolution: From Minimum Wage 2024 to the 2025 Floor

The progression of Portugal’s minimum wage reflects the government’s commitment to narrowing the gap with the European average, although the country remains among the lowest floors in Western Europe according to Eurostat.

The minimum wage in 2024 was set at €820 per month, representing an important step in the series of annual adjustments. In 2025, the increase reached €870, corresponding to an approximate 6% rise compared to the previous year.

In autonomous regions, compensation is more favorable:

• Madeira: €913.50
• Azores: €915

It is noted that these increases follow a progressive strategy with projections confirmed through 2026, demonstrating stability in Portuguese wage policies.

Conversion to Reais: The Brazilian Professional’s Perspective

Converting the current floor to Brazilian currency:

€870 ≈ R$5,584 to R$5,650 (depending on exchange rate fluctuations)

This figure, at first glance impressive by Brazilian standards, should be contextualized within the Portuguese fiscal reality and cost of living, not necessarily indicating greater purchasing power in daily life.

Deduction Structure: What Really Remains in Hand

Understanding deductions is essential to calculate the actual net salary:

Social Security: 11% mandatory for all workers

• On €870 = €95.70 deduction

IRS (Personal Income Tax):

• Applied progressively according to income brackets
• Varies with family situation and number of dependents
• For the minimum wage, often reduced or exempt under certain circumstances

Practical Calculation:

• Gross salary: €870
• Social Security deduction: €95.70
• Subtotal: €774.30
• With possible IRS: between €750 and €760 (depending on personal profile)

Professionals with qualified training and salaries above the minimum face more significant withholdings but also enjoy greater net purchasing power.

Compensation by Sector: Variability and Opportunities

Wages in Portugal vary substantially depending on the professional area. While the minimum floor remains at €870 for 40-hour workweeks, technical and specialized professions often have much higher scales:

Technology, healthcare, and management professionals frequently earn between €1,200 and €2,500 monthly, depending on experience and location. Sectors like hospitality and retail tend to stay closer to the minimum wage, while engineering, finance, and consulting offer salaries 3 to 4 times higher.

Wage progression in Portugal tends to be more gradual than in other European countries but offers greater stability in the medium term.

Hourly Rate: Breakdown of Daily Compensation

With a minimum wage of €870:

• Monthly hours: 176 (40 hours/week)
• Hourly rate: approximately €4.94
• Half-time (20h/week): about €435 monthly

Qualified and specialized jobs easily surpass €12 to €20 per hour, providing greater financial flexibility.

Cost Overview: Where Your Salary Goes

Portugal ranks as the 2nd most affordable destination in Western Europe, yet still has significant structural expenses.

###Estimated Monthly Budgets:

• Single person: €1,800 to €2,000
• Family of 4: €3,200 to €3,600

###Category Breakdown:

Food:

• Fast food: €8 to €10
• Executive menu: €12 to €15
• Protein (chicken 500g): €3.20 to €3.60
• Dairy (cheese 500g): €4.50 to €5.20

Housing (monthly rent):

• T2 (85m²) in premium Lisbon/Porto area: €1,400 to €1,600
• T2 in common area: €900 to €1,100
• Studio in common area: €650 to €800

Mobility:

• Fuel (per liter): €1.65 to €1.75
• Monthly transit pass: €30 to €40

Utilities and Services:

• Electricity, water, gas (T2): €100 to €130
• Internet/phone: €25 to €40
• Gym/fitness center: €30 to €45
• Private medical consultation: €60 to €75

Financial Feasibility: Is It Possible to Live on the Minimum?

Technically yes, but with important caveats:

In medium-sized cities (Covilhã, Viseu, Guarda): The minimum wage allows for a modest but stable life, especially with shared housing.

In Lisbon and Porto: Requires strict budget management. A single person with €770 net can cover rent (€600-700), food (€100-120), transportation (€35), and utilities (€120), leaving little room for unforeseen expenses or leisure.

Practical recommendations:

• Prioritize secondary cities initially
• Consider shared housing to reduce fixed costs
• Seek professions with salary potential above the minimum
• Save a small amount before moving

Comparison: Portugal Versus Brazil for Migrants

Although the Portuguese floor of €870 (≈ R$5,600) is 3.7 times higher than the Brazilian minimum (R$1,518 in 2025), a simplistic analysis by nominal value ignores critical factors:

Advantages of Portugal:

• Institutional stability and labor protections
• Access to robust social benefits
• Predominant formal market
• Consistent salary progression for qualified professionals
• Overall higher quality of life

Relative disadvantages:

• Considerably higher cost of living
• Reduced net salary due to taxes
• Tight real estate market in main cities
• Less pronounced salary hierarchies for beginners

Real comparative scenario:

A Brazilian worker earning the minimum wage in Brazil (R$1,518) often retains about 85% of that amount (≈ R$1,290), while in Portugal, with €870, they retain only about 88% after deductions (€770).

Converting: €770 ≈ R$4,900, representing a higher earning (~3.8x), but with a higher cost of living, reducing the actual advantage.

The real difference emerges for qualified professionals: a developer or engineer in Portugal earns €1,800 to €2,500, while similarly in Brazil they earn R$4,000 to R$6,000 (€700-1,050).

Fiscal Context: Tax Burden and Rights

Portugal applies a progressive tax system. The minimum wage often benefits from tax deductions, but any salary increase leads to rapid withholding.

Portuguese Social Security offers more comprehensive coverage for health, unemployment, and retirement than many Brazilian systems, partially justifying the 11% retained.

Recommendations for Decision-Making

Before deciding to move:

1. Research demand for your profession in Portugal
2. Request actual salary offers rather than assuming minimums
3. Choose cities based on cost of living, not just the legal minimum wage
4. Calculate your net income against expenses in target cities
5. Consider medium-term progression: years 1-2 may be tight, but growth opportunities exist

Final Summary

The minimum wage in Portugal in 2025 (€870) represents progress over 2024 (€820), reflecting political commitment to salary appreciation. However, it does not always translate into proportional quality of life gains immediately, especially in Lisbon and Porto.

Migration decisions should consider your specific profession’s salary, not just the legal floor. Qualified professionals find Portugal particularly attractive; for the minimum wage, experience varies depending on personal adaptation and location choices.

Portugal remains a viable destination for those seeking European stability and structured professional opportunities, especially in the medium and long term. However, financial success depends on realistic planning and honest expectations assessment.