Understanding the Minimum Wage in Portugal: A Complete Analysis of Earnings, Deductions, and Financial Reality

Planning a move to Portugal requires a thorough analysis of the numbers. The minimum wage in Portugal in 2025 reached €870 per month in the mainland areas, representing a significant increase compared to the previous year. But what is the real impact of this remuneration on everyday life? How much is left after mandatory deductions? And how does this compare to the Brazilian financial reality?

This article deconstructs the myths about earnings in Portugal, presenting real deduction figures, salary comparisons by sector, and an honest overview of the cost of living in the country’s main cities.

What Is the True Value of the Portuguese Minimum Wage in 2025?

The minimum remuneration set by the Portuguese government for 2025 was defined at €870 on the mainland — the result of a gradual policy of valorization that has been implemented for years.

In the islands, the values are slightly higher:

• Madeira: €913.50
• Azores: €915

Converting to Brazilian reais, the minimum wage in Portugal corresponds to approximately R$5,584, using current exchange rates. This figure may seem impressive when viewed in isolation, but the economic context is quite different.

Within the European Union, Portugal’s minimum wage still ranks among the more modest, as documented by Eurostat. Despite this, specific salaries by profession often exceed this floor, especially in qualified sectors.

Annual Progression: How Has the Wage Floor Evolved?

In recent years, the Portuguese government has adopted systematic increases:

• 2024: €820
• 2025: €870

This trajectory reflects a strategic move to bring Portugal closer to European averages, although the country still maintains one of the lowest minimum wage structures in Western Europe.

The Deductions: Understanding What Actually Comes Out of the Paycheck

The difference between gross and net salary in Portugal is quite significant. The main deductions include:

Social Security (11% mandatory)
All workers contribute 11% of their monthly earnings to the social protection system. For €870, this amounts to a €95.70 automatic deduction.

IRS — Personal Income Tax
The Portuguese tax system is progressive. Workers earning above the minimum are subject to IRS withholding, which varies depending on family situation and dependents.

Practical Simulation:

• Gross salary: €870
• Social Security deduction (11%): €95.70
• Amount after Social Security: €774.30
• With possible IRS withholding: additional reduction

In practice, those earning the minimum in Portugal take home approximately €770-€780 net, if there is no IRS withholding or if it is minimal.

How Much Do Different Professions Earn in Portugal?

The salary landscape varies considerably depending on the field. Qualified professionals earn significantly above the minimum:

• Engineers: €1,800-€2,500
• University Professors: €1,600-€2,200
• Doctors: €2,000-€3,500
• Specialized Technicians: €1,200-€1,800
• Salespeople: €1,000-€1,500
• Unskilled Workers: €870-€1,100

Values are monthly, based on a standard 40-hour workweek.

This salary dispersion demonstrates that the true financial potential in Portugal heavily depends on education, experience, and sector.

The Portuguese Cost of Living: How Much Do You Need to Earn to Live Well?

According to updated expense data in Portugal:

Estimated Monthly Expenses:

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

Portugal ranks second among the most affordable countries in Western Europe, although this varies drastically between cities.

Breakdown of Typical Expenses

Food:

• Fast food meal: €8
• Business lunch at a café: €12
• (500g) chicken: €3.36
• (500g) cheese: €4.90

Housing (monthly rent):

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

Mobility:

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

Utilities and Services:

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

Is It Feasible to Survive on the Minimum Wage in Portugal?

Yes, but with important caveats. Feasibility depends on three main factors:

1. Location: In cities like Lisbon and Porto, rent can easily consume 60-70% of income. In medium-sized cities, the proportion is more balanced.

2. Lifestyle: Those opting for home-cooked meals, public transportation, and avoiding unnecessary expenses can manage. Luxury is limited.

3. Fixed Expenses: Dependents, healthcare, and education significantly alter the financial equation.

In practice: with €770 net income, rent of €600-€700 already consumes most of the budget. Food, transportation, and services drastically reduce the available margin for emergencies or savings.

Direct Comparison: Portugal vs. Brazil Minimum Wage

The comparative analysis reveals important nuances:

Nominal Figures:

• Portugal 2025: €870 (≈R$5,500-R$5,600)
• Brazil 2025: R$1,518

At first glance, Portugal pays 3.6 times more. However, the reality is more complex.

Deductions and Withholdings:
In Portugal, mandatory deductions reach 15-20% of gross, leaving about €770 net. In Brazil, a worker earning the minimum retains proportionally more of the received amount, though in absolute values it is lower.

Local Purchasing Power:
In Portugal, €1 buys less than R$1 — considering basic baskets and essential services. However, social welfare, public health, and economic stability partially compensate.

Professional Growth:
For qualified professionals, Portugal offers a much higher salary scale. An engineer or IT specialist in Portugal earns 2-3 times more than the equivalent in Brazil.

Comparison Conclusion:
Portugal offers nominally higher salaries and more security, but also a higher cost of living. For those earning only the minimum, the advantage is modest. For qualified professionals, moving is financially advantageous in the medium term.

Final Considerations: Is Moving to Portugal Worth It?

The answer depends on your profile:

For qualified professionals: Yes. Salaries in technical, health, and technology sectors are significantly higher than in Brazil.

For those earning only the minimum: Maybe. It is possible to live, but without significant savings margin, especially in Lisbon or Porto.

Decisive Factors:

• Your profession and qualification level
• The chosen city $1 interior vs. Lisbon/Porto(
• Career advancement opportunities
• Access to social benefits )health, education(
• Political stability and safety

Migrating to Portugal is not just a salary decision but an investment in the future with tax, labor, and personal implications. A realistic analysis of the minimum wage in Portugal, combined with your professional expectations, provides the basis for an informed decision.