Earnings in Portugal: How Much Do You Really Take Home with the Minimum Wage?

In 2025, understanding the financial reality of those working in Portugal requires more than just knowing the nominal value of the minimum wage. For Brazilians and other immigrants considering settling in the European country, it is essential to analyze net income, mandatory deductions, and whether earnings effectively cover the cost of living in different regions.

The Portuguese Minimum Wage Reached €870

The Portuguese government set the minimum wage at €870 per month for mainland Portugal in 2025, marking an increase from €820 the previous year. In the autonomous islands, the values are slightly higher:

• Madeira: €913.50
• Azores: €915

This progression reflects a government commitment to gradually increasing earnings, with adjustments planned until 2026. Within the European Union, Portugal remains among the nations with the most modest minimum wages, according to Eurostat, although the growth context is relevant for those following the European labor market.

How Much Does the State Deduct: Mandatory Abatements

Three main factors reduce gross salary in Portugal:

Social Security (11% mandatory) — All workers see this deduction automatically applied to their paycheck. For those earning the minimum wage, it amounts to €95.70 per month.

IRS — Personal Income Tax — Applies only above a certain threshold and varies according to household and dependents. Many prospective movers are surprised by additional reductions here.

Practical Example:

• Gross salary: €870
• Social Security deduction: -€95.70
• Intermediate balance: €774.30
• If applicable, IRS: additional reduction (varies case by case)

The result is that a worker earning the minimum wage receives between €740 and €770 net, depending on their personal tax situation. This narrow margin leaves little room for savings in cities with higher housing costs.

Minimum Wage Trajectory in Portugal

The historical series shows an upward trend in recent years. The government has accelerated adjustments, aiming to align with Western European standards, although there is still a considerable gap compared to more developed economies.

How Much Do Different Professions Earn in Portugal?

Compensation varies significantly depending on sector and qualification:

Professions with university training (Engineering, Technology, Medicine) range between €2,000 and €4,500 monthly. Skilled technical areas (Electrician, Plumber, HVAC) hover around €1,200 to €1,800. Hospitality and Retail sectors often earn only the minimum or slightly above (€900 to €1,100). The standard workweek is 40 hours spread over 176 hours per month.

The Hourly Wage

Converting the minimum wage of €870 over a 176-hour monthly schedule, the worker earns approximately €4.94 per hour. Professionals with specialization can earn €10, €15, or even €20 per hour, creating substantial differences when projected over a full year.

Actual Expenses: How Much Does Living in Portugal Cost?

Cost of living platform data indicates:

A single person spends on average €1,800 per month, while a family of four needs €3,304. Portugal ranks as the second most affordable country in Western Europe (only surpassed by Greece in certain metrics).

Food:

• Fast food meal: €8
• Menu of the day at a restaurant: €12
• 500g chicken: €3.36
• 500g cheese: €4.90

Housing:

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

Transport:

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

Services and Utilities:

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

Is It Sustainable to Live Only on the Minimum Wage in Portugal?

The answer is: yes, but with significant restrictions. In medium-sized cities like Covilhã, Guarda, or Aveiro, €770 net allows for a modest life. In Lisbon and Porto, the same amount requires very strict choices — living in distant neighborhoods, extremely controlled food expenses, no recreational spending.

The reality is that many earning the minimum supplement their income with additional jobs (part-time night work, freelancing) or receive family support.

Comparing with Brazil: Portugal Minimum Wage vs Brazil

In 2025, the nominal difference is dramatic:

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

However, simplistic comparison is misleading. Real purchasing power requires parallel analysis of deductions and costs:

A Portuguese worker earning the minimum wage receives €770 net after deductions. Deducting housing (€729 in a common area) leaves €41 for food, transportation, and emergencies — clearly unsustainable without additional income.

A Brazilian earning the minimum (R$1,518) faces approximately 13.5% deductions (INSS), ending up with around R$1,314 net. With rent in São Paulo outskirts (~R$600), they still have some room to live — a tight situation, but slightly less dramatic proportionally.

Where Portugal clearly wins: qualified professionals. A developer, engineer, or doctor earns 3 to 5 times more in Portugal than in Brazil with similar qualifications, significantly offsetting the higher cost of living.

Conclusion: Is It Worth Migrating to Portugal?

The answer depends entirely on your professional profile and goals:

For those earning only the minimum wage: Portugal offers security, a superior healthcare and education system, but demands strict austerity. Only recommended for migration scenarios for study $714 with scholarship( or with an accelerated career plan.

For qualified professionals: Portugal is decisively attractive. Salaries from €2,000 to €4,000 enable a comfortable life, monthly savings, and even remittances. Coupled with relatively low taxation, stable climate, and proximity to Europe, it presents a solid opportunity in the medium to long term.

Critical Analysis Needed:

• What is the specific earning potential of your profession in Portugal?
• Which city fits your budget )Lisbon and Porto cost 40% more than medium-sized cities(?
• Is there demand for your specialization in the Portuguese market?
• Do your goals include saving or just basic sustenance?

Migration to Portugal is not a matter of “minimum wage yes or no,” but of a personal strategy where wages by profession, career progression, quality of life, and tax burden are interdependent variables. Those who plan with realistic information and aligned expectations find genuine opportunities for European stability in Portugal.