Working in Portugal in 2025: Minimum Wage, Taxes, and Cost of Living Reality

How much does someone earning the minimum wage in Portugal actually make?

The minimum wage in Portugal reached € 870 per month in 2025 on the mainland, representing an increase from € 820 the previous year. In the autonomous islands, the amounts are slightly higher:

• Madeira: € 913.50
• Azores: € 915

However, before celebrating this minimum wage floor, it is essential to understand what actually lands in the bank account after mandatory deductions.

Deductions that reduce the minimum wage in Portugal

The gross salary of € 870 undergoes significant withholdings:

Social Security: 11% (€ 95.70)
Mandatory deduction for all workers, without exception.

IRS (Personal Income Tax): variable
Applied according to dependents, family situation, and income bracket. For those earning only the minimum wage, there is usually full exemption or minimal withholding.

Practical result:
Gross salary: € 870
Less Social Security (11%): -€ 95.70
Approximate net salary: € 774.30

This difference between the announced amount and what actually goes into the pocket is often underestimated by those considering moving to Portugal.

How much does it cost to live in Portugal in 2025?

Monthly expenses vary depending on location and lifestyle:

Basic budget for one person: € 1,800
Family of 4: € 3,304

Portugal ranks favorably among European countries in terms of cost of living, behind only a few.

Food

• Casual restaurant meal: € 8-12
• Chicken (500g): € 3.36
• Cheese (500g): € 4.90

Housing

• T2 apartment in a prime area: € 1,518/month
• T2 apartment in a common area: € 1,005/month
• Studio in a common area: € 729/month

Transportation and Utilities

• Gasoline: € 1.69/liter
• Monthly public transport pass: € 35
• Electricity, water, and gas combined: € 112/month
• Gym: € 34/month

( Health

• Private medical consultation: € 65

Is it feasible to live on the minimum wage in Portugal?

Technically yes, but with important caveats:

In small and medium-sized cities, a monthly budget of € 774 )net salary### is tight but manageable, especially for a single person without dependents. The challenge arises when considering rent (often above € 600-700 in decent areas) plus food and transportation.

In the capitals — Lisbon and Porto — the reality is more challenging. Renting a T2 in a common area consumes approximately 65% of the net salary, leaving little for other expenses.

Comparison: Minimum wage Portugal versus Brazil

This analysis is essential for those contemplating migration.

Nominal gross values:

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

At first glance, Portugal seems to offer more than 3.5 times the amount. However, this simplistic comparison ignores critical nuances.

Net salary after deductions:

• Portugal: € 770 (approximately R$ 4,850)
• Brazil: retains about 85-90% of the gross amount due to proportionally smaller deductions

Relative cost of living:
In Portugal, decent housing consumes 40-50% of income. In Brazil, in certain regions, this percentage can be similar or even lower, depending on the area chosen. Food and public transportation are more expensive in Europe, but services like private education and healthcare can be proportionally more affordable in Portugal due to the social welfare system.

Conclusion of the comparison:
Real purchasing power is closer than the gross numbers suggest. Those earning minimum wage in both countries will have a modest life in both situations, albeit with different consumption standards.

Salaries by profession in Portugal: where are the real opportunities

The true advantage of working in Portugal is not the minimum wage but specialized careers:

• Engineering: € 1,800-2,500
• Technology and programming: € 1,600-2,800
• Healthcare (nurses, technicians): € 1,200-1,800
• Administrative: € 900-1,400
• Retail and services: € 800-1,200

Qualified professionals, especially in high-demand sectors like technology and healthcare, experience earnings between 2 to 3 times the Portuguese minimum wage, significantly changing the financial equation.

The hourly work cost

With a minimum wage of € 870 and a standard workweek of 176 hours/month:

• Hourly rate: approximately € 4.94
• Half-time: about € 435/month

Specialized professions reach € 10-25 per hour, marking a substantial difference in annual income.

Evolution of the minimum wage in Portugal: a trend of appreciation

The Portuguese government maintains an annual adjustment policy until 2026, reflecting a commitment to bring the minimum wage closer to the European average. Still, Portugal remains among the countries with the lowest minimum wages in Western Europe, according to European statistical agencies.

This upward trajectory benefits mainly workers who stay longer in the country, as future adjustments gradually improve the situation.

Final decision: is it worth working in Portugal?

The answer depends on the professional profile:

For specialized workers: yes, clearly. The demand for qualified professionals in Portugal exceeds supply, resulting in attractive salaries and job stability.

For those relying solely on the minimum wage: possible, but requires careful planning. It is feasible in smaller cities but will require expense control and possibly additional income.

Additional considerations:

• Portuguese social security offers better protection than Brazil
• Access to free public healthcare reduces unexpected expenses
• Cost of living varies drastically between Lisbon/Porto and inland areas
• Opportunities for professional growth in specific sectors are real

The decision should consider not only gross numbers but the career trajectory you want to build, the region chosen, and your medium- and long-term goals.