Minimum Wage Portugal 2025: Complete Analysis of Earnings, Deductions, and Financial Reality

How much do workers in Portugal actually earn? Portugal’s minimum wage was once again adjusted in 2025, setting it at €870 per month for the mainland. This amount represents an increase over the €820 in 2024, continuing the government’s policy of gradual wage increases until 2026. In the islands, the situation is slightly different: Madeira records €913.50 and the Azores €915 per month.

For Brazilians considering a possible move to Portugal, this salary reality presents important nuances that go beyond the nominal numbers. It is essential to understand not only the gross income but also the mandatory deductions, the real purchasing power, and how disposable income is allocated among essential expenses.

The Minimum Wage in Portugal: European Context and Conversion

In the European landscape, Portugal ranks among the countries with the lowest minimum wages, according to Eurostat data. However, this position reflects only one aspect of the Portuguese labor market — skilled professions earn substantially above this level.

Converting to Brazilian reais, Portugal’s minimum wage of €870 corresponds to approximately R$ 5,584. Despite appearing to be a considerable amount by Brazilian standards, context is necessary: the cost of living in Portugal is proportionally higher, especially in major urban centers.

Breakdown of Deductions: From Gross to Net

The path from gross salary to the actual available income involves two main deductions:

Social Security — 11% mandatory: All Portuguese workers contribute this percentage, regardless of income bracket. On €870, this results in €95.70 deducted.

**Income Tax (IRS): ** Applied progressively according to brackets and family circumstances. Those earning strictly the minimum wage often are exempt from this initial withholding, retaining the gross amount after social security.

A worker earning €870 gross will, in most scenarios, have an available income close to €774. From this amount, all expenses must be covered: housing, food, transportation, and utilities.

Cost of Living in Portugal: How Much Is Actually Spent

Updated data show that an individual living alone needs approximately €1,800 per month for comfortable maintenance, while a family of four requires around €3,304. Portugal ranks as the second most affordable economy in Western Europe, though this ranking is relative.

Housing — the largest budget item:

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

Food — varies depending on establishment:

• Fast food meal: €8
• Menu of the day at a restaurant: €12
• Protein and dairy: €3.36 to €4.90 per 500 grams

Mobility and essential services:

• Electricity, water, and gas combined: €112
• Monthly transportation pass: €35
• Fuel: €1.69 per liter

In this context, someone earning only the Portuguese minimum wage faces real limitations. In metropolises like Lisbon and Porto, the financial margin becomes almost nil after covering accommodation. In smaller cities, the situation is more balanced.

Minimum Wage Portugal Versus Brazil: Critical Reading for Migrants

A direct comparison between the Portuguese minimum of (€870) and the Brazilian (R$1,518) often leads to hasty conclusions. The Portuguese salary converts to roughly R$5,500–R$5,600, tripling the nominal Brazilian minimum. However, this amplification masks divergent economic realities.

Effective income after deductions: Portugal retains about 11% only for social security, leaving €770 net. Brazil, on the other hand, applies smaller percentage deductions, allowing a larger portion of the minimum wage to remain available — even if the nominal value is lower.

Structural cost of living: Portugal has high rates for housing, energy, and processed food. Brazil offers greater relative affordability for some basic goods, though regional variability is significant.

Career prospects: For individuals with skills valued in the European market, Portugal offers substantially higher wages above the minimum — often two, three, or even four times the minimum in specialized professions. This wage advantage tends to grow with career progression.

Feasibility of Living on the Minimum Wage in Portugal

Yes, it is possible to live earning only the Portuguese minimum wage, but with significant caveats:

In major cities (Lisbon, Porto), extreme budgeting is required — rent can consume 50% or more of disposable income, leaving little for food, transportation, and contingencies.

In medium-sized urban centers (Covilhã, Guarda, Viseu), the reality becomes materially more affordable, with rent accounting for 35–45% of the household budget.

Personal lifestyle — whether oriented toward minimalist or conventional consumption — also determines the sustainability of this income.

Evolution and Forecasts

The Portuguese minimum wage has experienced consistent annual increases. From 2024 to 2025, the increase was €50, following the government’s established schedule until 2026. This upward trend reflects a gradual effort to align with Western European averages, although Portugal remains behind economies like Spain, France, and Germany.

Final Recommendation for Migration Candidates

Deciding to relocate to Portugal should not be based solely on minimum wage comparisons. It should consider:

• Personal professional qualification and demand in the Portuguese market
• Specific destination city and its regional cost of living
• Expected salary trajectory in the medium and long term
• Motivations beyond remuneration — quality of life, healthcare, education, safety
• Financial capacity for transition during the initial adaptation period

For specialized professionals, Portugal tends to offer a favorable scenario. For those earning only the minimum wage, a realistic assessment is necessary, considering additional financial support or rapid career progression as prerequisites for long-term sustainability.