Portugal’s economy is on the rise, with tourism, services, and tech startups driving growth in cities like Lisbon and Porto. If you’re considering working in Portugal, Remitly can help you understand local wages while staying connected to your home country through secure money transfers.
For 2025, Portugal has announced another increase to its “salário mínimo nacional” (national minimum wage), continuing a trend of steady increases to improve living standards. This guide breaks down what workers can expect to earn and how wages stack up against the cost of living across the country.
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What is Portugal’s national minimum wage in 2025?
For 2025, the Portuguese government has increased the minimum monthly wage to €870, a 6.1% increase from €820 in 2024. This adjustment reflects a continued effort to support workers amidst inflation and rising living costs.
Portugal’s unique 14-month pay system means salaried workers receive extra payments during the summer and holiday season. Here’s what this looks like in practice:
- Base minimum monthly wage: €870
- Annual minimum wage: €870 x 14 = €12,180
- Effective minimum monthly wage: €12,180 ÷ 12 = €1,015
For part-time and hourly workers, the hourly rate is calculated using Portugal’s standard 40-hour workweek:
- Minimum monthly wage: €870
- Hours per week: 40
- Average weeks per month: 4.33 (52 weeks ÷ 12 months)
- Hourly rate: €870 ÷ (40 × 4.33) ≈ €5.02
These are gross salary figures before income tax and social security contributions, typically around 11% of the base salary for minimum wage earners.
The government plans to continue raising the minimum monthly wage by €50 every year until 2028, with a target of €1,020 per month by 2028—a more ambitious target than the previous collective bargaining agreement between the government, employers’ organizations, and trade unions.
Economic forecasts suggest this will boost consumer spending power, though challenges like the 12.5% gender pay gap will continue to affect overall household incomes.
How does Portugal’s minimum wage compare to the cost of living?
While the national minimum wage has steadily increased, purchasing power varies considerably from region to region:
Lisbon
Living on the minimum wage in Lisbon can be challenging due to higher costs:
- One-bedroom apartment: €1,200–1,900
- Basic utilities: €85–200
- Public transportation: €40
- Basic groceries: €300–350
Average monthly expenses typically exceed €1,800, more than twice the minimum wage. Our guide to settling in Lisbon offers insights into specific neighborhoods and cost-saving strategies that can make life in the Portuguese capital more manageable.
Porto
Porto, the largest city in Northern Portugal, offers slightly more affordable living:
- One-bedroom apartment: €800–1,500
- Basic utilities: €85–185
- Public transportation: €40
- Basic groceries: €250–300
Monthly expenses can easily exceed €1,400, but many newcomers prefer to settle in Porto because of its lower living costs compared to Lisbon.
Mid-sized cities
Cities such as Braga, Coimbra, and Setúbal tend to have more reasonable prices:
- One-bedroom apartment: €500–1,100
- Basic utilities: €60–190
- Public transportation: €15–40
- Basic groceries: €220–280
Many expats moving to Portugal choose these mid-sized cities for their better balance of opportunities and cost of living.
Interior regions
In smaller towns, living on a single minimum wage is more feasible:
- One-bedroom apartment: €300–500
- Basic utilities: €70–200
- Transportation: Private vehicle is often required
- Basic groceries: €200–250
How does the minimum wage in Portugal vary by age, region, or industry?
Madeira and the Azores, the two autonomous regions of Portugal, have their own minimum wages set by their respective regional governments. Both island regions have traditionally maintained higher minimum wages to compensate for their unique economic challenges.
As of January 1, 2024, the minimum wages are:
- Mainland Portugal: €820 per month
- Azores: €861 per month
- Madeira: €850 per month
These figures are reviewed annually based on regional economic forecasts. Both territories will meet or exceed the national minimum wage in 2025 following the mainland’s increase to €870.
Article 275 of the Portuguese Labor Code allows just two main exceptions that could result in taking home less than that:
- Trainees and apprentices may receive 80% of the minimum wage, but only during the first year of certified training.
- Workers with disabilities can receive an adjusted wage based on a formal capacity assessment, but this reduction cannot exceed 50%.
Apart from these exceptions, Portugal’s minimum wage system is remarkably straightforward, with no age-based variations and a uniform application across industries regardless of company size.
How does the Portuguese minimum wage compare to other countries in Europe?
Despite gradual increases, Portugal’s €870 minimum monthly wage for 2025 (€1,015 when adjusted to a 12-month basis) is significantly lower than other Western European countries, ranking 12th out of 22 EU countries with statutory minimum wages.
Here’s how it compares:
- Luxembourg: €2,571 per month (€3,085 for skilled workers), the highest in the European Union
- Netherlands: €2,437 per month
- Germany: €2,151 per month
- Belgium: €2,070 per month
- France: €1,802 per month
- Spain: €1,323 (adjusted to a 12-month basis)
The disparity between wages and the cost of living is particularly challenging for minimum wage workers in Portugal. Despite the minimum wage being less than 60% of France’s, rental costs in major cities like Lisbon are on par with Paris.
Even when adjusted for purchasing power parity, Portugal ranks among the lower tier of EU countries, alongside nations such as Cyprus, Croatia, Greece, Lithuania, and Romania.
What are Portuguese working conditions and social security benefits?
Portuguese minimum wage workers enjoy extensive employment protections and social security benefits. The standard workweek is capped at 40 hours, and workers are entitled to 22 days of paid vacation and 13 public holidays per year.
In addition to the 14 annual salaries—a system that helps workers manage seasonal expenses—daily meal allowances are also very common.
Social security benefits include:
- Healthcare coverage
- Unemployment insurance
- Workers’ compensation
- Pension contributions
- Parental leave benefits
Employers are also required to provide full-time employees with 40 hours of on-the-job training per year. Any unused training hours must be compensated at the end of the employment contract.
While the minimum salary is standardized, actual wages often depend on collective bargaining between unions and employers. These collective agreements typically result in higher wages than the legal minimum.
FAQs about Portugal’s minimum wage
Portugal sets its minimum wage as a monthly rate (€870 in 2025, paid 14 times a year). Based on the standard 40-hour workweek and 52 weeks per year, this works out to approximately €5.02 per hour.
The Portuguese government reviews and adjusts the national minimum wage annually, with changes typically taking effect in January.
A livable wage varies considerably from region to region. In Lisbon, a single person typically needs an average salary of €1,800–2,100 per month to live comfortably, given current rental costs and basic expenses. In smaller cities and rural areas, the cost of living is much lower, making it easier to get by on the minimum wage.
While the average monthly salary in Portugal is around €1,290, the median is much lower at €960, meaning half of all workers earn less than this amount. Only 29% of employees earn above the average.
The minimum wage has been increasing steadily in recent years:
– 2023: €760 per month
– 2024: €820 per month
– 2025: €870 per month
The government’s plan is to reach €1,020 per month (€1,190 on a 12-month basis) by 2028.
Learn more about working in Portugal
If you’re planning to work remotely while living in Portugal, explore our guide to getting a digital nomad visa.
To learn to communicate effectively at work, check out these apps for learning Portuguese.
Need to send money to your family while working in Portugal? Download the Remitly app for secure transfers with competitive exchange rates.
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