What is the Minimum Wage in Portugal and How Does It Affect Your Real Budget?

The Portuguese Minimum Wage in 2025: Numbers and Reality

Portugal has set its minimum wage at € 870 per month for the mainland in 2025, an increase from € 820 in 2024. For those coming from Brazil, the conversion to reais reaches approximately R$ 5,584, a figure that initially seems quite attractive.

However, it is essential to consider that among European nations, Portugal holds a modest position in terms of minimum remuneration — Eurostat data confirms this reality. In the autonomous regions, the figures are slightly higher: Madeira offers € 913.50 and Azores, € 915 per month.

What Actually Arrives in the Bank Account: Mandatory Deductions

The gap between gross and net salary in Portugal is significant, directly affecting the worker’s purchasing power.

The main deductions are:

Social Security (11% mandatory): All employees contribute this percentage, resulting in a reduction of € 95.70 on the € 870 salary.

Income Tax (IRS): Applied according to salary bracket and family situation, further reducing the disposable income for those exceeding certain thresholds.

In practice, a worker earning the minimum takes home approximately € 774.30 after social security contributions, and may face additional deductions if IRS applies.

How Much Does It Cost to Live in Portugal: The Hidden Side of Income

Before celebrating the nominal salary value, it is crucial to map out actual expenses. According to Expatistan data, the monthly cost for an individual ranges between € 1,800 and € 1,900, while a family of four requires approximately € 3,304.

Food and groceries:

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

Housing (where the biggest expense is):

• T2 apartment (85m²) in a upscale neighborhood: € 1,518
• T2 apartment in a regular area: € 1,005
• Studio in a middle-range zone: € 729

Transport and fuel:

• Gasoline: € 1.69 per liter
• Monthly transit pass: € 35

Services and utilities:

• Gym/fitness center: € 34
• Combined bill (electricity, water, gas): € 112
• Private medical consultation: € 65

The equation becomes clear: rent consumes between 40% to 60% of the minimum wage, leaving limited room for other needs.

Professions and Salary Ranges: Where Is the Difference

Average remuneration in Portugal varies drastically depending on the sector and professional qualification. Developers, engineers, and healthcare professionals earn significantly above the minimum — often doubling, tripling, or even quadrupling the minimum wage.

For hourly perspective: with € 870 distributed over 176 hours per month (standard 40h workweek), the hourly rate is approximately € 4.94. Specialized professionals easily surpass € 15 to € 20 per hour worked.

The Comparison That Matters: Portugal Versus Brazil for the Average Worker

Numerically, € 870 (about R$ 5,500–5,600) appears to be three times higher than the Brazilian minimum of R$ 1,518. However, this superficial comparison belies the actual financial living conditions.

In Portugal, after mandatory deductions, the worker has about € 770 per month. Considering that modest housing costs € 700 to € 800, little remains for other expenses.

In Brazil, although gross income is lower, proportional deductions for the minimum wage tend to be smaller, preserving a higher percentage of the received amount. Additionally, some basic costs like food in inland regions remain more affordable.

The reality: Portugal pays more, but also costs proportionally more to live. The economic advantage is for qualified professionals capable of earning above the minimum, where the salary difference justifies higher living expenses.

What Is the Minimum Wage in Portugal — Adaptation According to the City

Lisbon and Porto: Cities where living on the minimum wage requires strict budget management. Rent, dining out, and entertainment are concentrated at higher levels. Possible, but challenging.

Medium-sized cities (Covilhã, Guarda, Évora): Allow for more comfortable adaptation, with lower housing costs and preserved quality of life.

Interior regions: Offer greater financial flexibility for those earning the minimum, especially in housing.

Trajectory of Adjustments and Future Outlook

The Portuguese government has implemented a policy of gradual wage increases, with adjustments planned until 2026. This trend aligns with European goals of wage convergence, even though Portugal maintains one of the lowest levels in Western Europe.

Decision: When Is It Worth Migrating to Portugal

For specialized professionals — developers, doctors, architects, tech experts — Portugal presents a clear opportunity, offering income above the minimum with a high quality of life.

For workers earning only the minimum: it heavily depends on the city chosen, willingness to live on a tight budget, and capacity for professional growth during the stay.

Successful migration requires comprehensive analysis: not just the minimum wage, but the actual demand for your profession, specific local costs, real tax burden, and growth potential. Lisbon and Porto demand more caution; smaller cities offer greater financial stability even with minimum remuneration.