The Minimum Wage in Portugal in 2025: Financial Analysis and Real Impact for Migrants

For those considering moving to Portugal, understanding the country’s salary structure is essential. The issue is not limited to the gross amount received but involves mandatory deductions, regional variations, international comparisons, and, most importantly, what actually remains in the pocket at the end of the month. This article details all these aspects, allowing for a realistic assessment of the financial viability of the move.

Portugal Minimum Wage: The 2025 Value

The Portuguese minimum wage was adjusted in 2025, reaching €870 per month in the mainland territory. Compared to €820 in 2024, this represents an increase of €50, reflecting the Portuguese government’s gradual appreciation policy.

In autonomous regions, the values are slightly higher:

• Madeira: €913.50
• Azores: €915

Converting to Brazilian reais, the Portuguese minimum wage in 2025 is approximately R$5,584, a figure that may seem significant by Brazilian standards but places Portugal among European countries with modest minimum wages. According to Eurostat data, even with this increase, Portugal remains below the European Union average.

Deductions: How Much Is Actually Left in the Account

The Portuguese gross salary undergoes mandatory deductions that significantly reduce the available amount:

Social Security Deduction: 11% of gross salary, applied universally to all workers. This funds the Portuguese social protection system.

Income Tax (IRS): Varies according to family situation, number of dependents, and other criteria. It is not applied uniformly — those earning exactly the minimum may be exempt or have lower withholdings, while those earning above face progressive taxation.

A practical example:

• Gross minimum wage: €870
• Social Security deduction (11%): €95.70
• Net salary before IRS: €774.30

If IRS withholding applies, the net monthly amount decreases further, potentially approaching €770 in scenarios with tax retention.

Growth Trajectory: An Upward Trend

The Portuguese minimum wage is not static. In recent years, Portugal has implemented planned annual increases, reflecting government efforts to converge with European standards. Although the trajectory is positive, the country still maintains one of the lowest minimum wages in Western Europe.

Compensation by Sector: Beyond the Minimum

The minimum wage is just the floor. Different professions and sectors pay their workers significantly differently:

Skilled professions often earn 2, 3, or even 4 times the minimum, depending on experience and sector. Engineers, developers, consultants, and healthcare professionals typically earn between €1,800 and €3,500 monthly. Technical and artisanal trades vary between €1,200 and €2,000.

This variation is crucial for those evaluating a professional move — not everyone will earn the minimum wage.

Hourly Wage

Based on a minimum salary of €870 and considering a monthly work schedule of 176 hours, the hourly rate is approximately €4.94. For part-time work, the remuneration would be around €435 per month.

Cost of Living in Portugal: The Real Side of the Coin

Portugal is ranked as the 2nd most affordable country in Western Europe. However, “affordable” is relative — the cost of living varies dramatically depending on the city and lifestyle.

Estimated monthly budget:

• One person: €1,800
• Family of 4: €3,304

Expense Breakdown:

Food:

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

Housing:

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

Transport:

• Gasoline: €1.69 per liter
• Monthly public transport pass: €35

Services and Utilities:

• Gym membership: €34
• Electricity, water, and gas: €112
• Medical consultation: €65

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

Technically, yes — but with important caveats. Feasibility depends on three main factors:

Location: In small and medium-sized cities, the minimum wage allows for a comfortable life with careful planning. In Lisbon and Porto, the same income requires strict control, prioritization of expenses, and possibly shared housing.

Lifestyle: Those willing to live austerely can sustain themselves. Leisure, frequent travel, and high consumption are not compatible with the minimum wage.

Support network: Having local connections, family, or friends who assist with housing significantly reduces difficulties.

Comparison: Portugal Minimum Wage versus Brazil

A comparative analysis is essential for Brazilians considering the move. Nominal figures can be misleading — what matters is real purchasing power.

Nominal values:

• Portugal 2025: €870 (~R$5,500-R$5,600 depending on exchange rate)
• Brazil 2025: R$1,518

Portugal offers a nominally 3.5 times higher salary. However, the economic reality is more complex.

Cost of living comparison: Rent in Lisbon or Porto consumes a similar or even larger proportion of income compared to Brazil. Basic food is more expensive in absolute terms, though higher salaries partially offset this.

Tax deductions: In Portugal, mandatory deductions reduce the salary by about 11% just for Social Security, plus progressive IRS. In Brazil, those earning the minimum have smaller deductions.

Net disposable income: A Portuguese worker earning the minimum ends up with around €770 after deductions. A Brazilian minimum wage earner retains proportionally more of the gross amount, though in absolute terms it is lower.

Advantage for qualified professionals: This is the decisive differential. Engineers, analysts, and specialized professionals earn significantly more in Portugal than in Brazil, creating real opportunities to save and improve quality of life.

Final Considerations for Those Thinking of Moving

Portugal offers real opportunities, especially for qualified professionals. The minimum wage, although higher than in Brazil, is not enough to guarantee comfort in large cities without meticulous planning.

The decision to migrate should not be based solely on numbers. It is necessary to evaluate:

• Your profession and specific earning potential in Portugal
• The city where you will work (Lisbon and Porto are significantly more expensive)
• Your lifestyle and adaptability
• Opportunities for professional growth in the medium and long term
• Your local support network

For those with valued experience in the European market, Portugal offers favorable prospects. For those earning only the floor wage, the experience will be marked by austerity, especially in large cities, but potentially feasible with financial discipline in smaller locations.

The best strategy is to secure a job above the minimum, realistically assess the specific cost of living in the chosen city, and maintain an emergency fund during the initial months of adaptation.