How Much Do People Who Work in Portugal Really Earn? Minimum Wage Analysis 2025

Considering a move to the Portuguese labor market requires much more than just looking at raw numbers. In 2025, what is the minimum wage in Portugal? €870 monthly in the mainland — but what does that mean after mandatory deductions? And how does this amount translate into real quality of life? This article breaks down every aspect of Portuguese compensation, from taxation to the cost of living in major cities, to assist in relocation decisions.

The Minimum Wage in Portugal: Updated Values in 2025

The minimum wage in Portugal in 2025 reaches €870 per month in the continental zone, representing an increase from €820 the previous year. The growth follows a government strategy of gradual convergence with European standards, with scheduled adjustments until 2026.

In the autonomous regions, the values differ slightly:

• Madeira: €913.50
• Azores: €915

Converting to Brazilian reais, the Portuguese minimum wage in 2025 totals approximately R$5,584, a figure that, despite being high by Brazilian standards, places Portugal among the lowest minimum wages in the European Union according to Eurostat data.

Mandatory Deductions: What Actually Comes Out of the Paycheck

Before celebrating the gross amount, it’s crucial to understand which deductions apply to the salary:

Social Security: 11% mandatory deduction for all employees, regardless of the amount received.

IRS (Imposto sobre o Rendimento das Pessoas Singulares): Progressive tax that varies according to family status and personal situation. Workers earning minimum wage may have withholdings, although in some cases exemptions apply.

In a practical projection: a minimum wage of €870 incurs a deduction of €95.70 solely for Social Security, resulting in €774.30. If IRS applies, the net amount decreases further, depending on family configuration.

Minimum Wage Trajectory: Upward Trend

Portugal has intensified its annual minimum wage adjustments, demonstrating efforts to align with the European average. Although the country remains among those with the lowest minimum wages in Western Europe, the progression shows political commitment to labor valuation.

Compensation by Professional Area

Wages in Portugal vary substantially depending on the sector. Skilled professionals can earn significantly more than the minimum:

• Technology and programming: €1,800–€2,500
• Healthcare (doctors): €2,200–€3,500
• Education (teachers): €1,100–€1,700
• Engineering: €1,400–€2,200
• Tourism and hospitality: €800–€1,100
• Construction: €900–€1,500

Monthly values based on a standard 40-hour workweek.

Hourly Costs and Salary Scales

With the minimum wage of €870 per month and a 176-hour monthly work schedule, the hourly rate is approximately €4.94. Part-time work, considering 50% of the full schedule, would be around €435 monthly. Specialized careers can multiply this cost by 2 to 4 times.

Cost of Living: The Other Side of the Financial Equation

According to cost of living analyses, Portugal ranks as the second most affordable country in Western Europe. However, expenses vary depending on location:

Food and Dining:

• Fast food meal: €8
• Menu of the day: €12
• Chicken (500g): €3.36
• Cheese (500g): €4.90

Housing:

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

Transport:

• Fuel: €1.69/liter
• Monthly transit pass: €35

Utilities and Services:

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

Estimated Monthly Budget:

• Single person: €1,800
• Family of four: €3,304

Is Living on the Minimum Wage Feasible?

The answer depends on three key factors: geographic location, personal consumption pattern, and additional fixed charges.

In major centers like Lisbon and Porto, living on €870 net requires strict budgeting. Rent alone consumes between 60% and 75% of available income, leaving little room for other expenses.

In medium-sized cities, the situation becomes more comfortable. Housing is proportionally more affordable, allowing savings for leisure and savings.

In less densely populated regions, the budget stretches considerably, enabling a decent quality of life even with the minimum wage.

Portugal versus Brazil: A Comparative Perspective for Migrants

In 2025, Portugal’s minimum wage (€870, roughly R$5,500–R$5,600) exceeds the Brazilian minimum wage (R$1,518) by more than three times. However, this nominal comparison masks the actual financial reality.

Real Purchasing Power: Although the Portuguese amount seems higher, the cost of living is also significantly higher. Rent, food, and transportation consume proportionally more in Portugal. Disposable income after essential expenses often approaches what would be possible in Brazil with an equivalent salary.

Tax Burden: In Portugal, deductions are higher (11% Social Security + progressive IRS), whereas in Brazil, a minimum wage worker faces smaller deductions, retaining a larger percentage of the gross.

Advantage for Skilled Professionals: The significant difference emerges for professionals with higher education or valued experience. In Portugal, these earn 2 to 4 times the minimum wage, creating a real opportunity for improved financial prospects in the medium term.

Informed Decision: Beyond the Numbers

Choosing Portugal isn’t just about comparing salaries. The move requires a holistic analysis:

Assess the salary potential for your specific profession — not just the minimum

Research the cost of living in your chosen city — Lisbon and Porto have significantly higher costs than other regions

Consider career progression prospects — Portugal offers stability and robust social security in the medium and long term

Analyze market demand for your skills — shortages command substantial salary premiums

For workers earning only the minimum, experiences vary greatly. For qualified professionals or those in sectors with labor shortages, Portugal offers genuine financial opportunity with institutional security.

The decision to relocate should simultaneously consider salary figures, tax burden, local cost of living, and medium-term personal goals. Only this integrated analysis provides a solid basis for a safe and financially sustainable move.