Portugal 2025: understand the value of the minimum wage in Portugal, deductions, and actual expenses

How many times have you wondered if moving to Portugal is financially worth it? For many Brazilians dreaming of this change, the answer starts with a number: the salary. In 2025, the minimum wage in Portugal reached €870 per month in the mainland, after an adjustment implemented by the government. But before packing your bags, it’s essential to go beyond the raw numbers — understanding mandatory deductions, real earnings by sector, and what it truly costs to live there is crucial for making an informed decision.

The minimum wage in Portugal in 2025: numbers that matter

Let’s start with the essential data. Portugal set the minimum wage at €870 for the mainland in 2025, an increase from €820 in 2024. In the islands, the figures differ slightly:

• Madeira: €913.50
• Azores: €915

This growth is part of a government plan to gradually increase wages with adjustments scheduled until 2026. Despite this, when compared to other European countries, Portugal remains among those with the lowest minimum wages — as recorded by Eurostat. Converting to the Brazilian reality: €870 is approximately R$5,584.

What is the net salary? Know the deductions

Here’s the part most overlook: between what the employer pays and what you actually take home, there’s a significant difference.

The main deductions are:

Social Security Contribution: 11% mandatory for all workers, no exceptions

IRS (Personal Income Tax): varies depending on your family situation, dependents, and income bracket — applies to those earning above the minimum wage

In practice, with a minimum wage of €870:

• Social Security (11%): €95.70
• Remaining gross: €774.30

Including IRS withholding, the amount decreases further. Result: while Portugal offers a nominal salary higher than Brazil’s, the disposable income after deductions isn’t as generous as it seems.

How has the Portuguese minimum wage evolved

The adjustment trajectory reflects the government’s social policy strategy: gradually approaching the European average. However, Portugal remains among the countries with the lowest minimum wages in Western Europe, indicating that the appreciation is still progressing at a moderate pace.

What different professions earn in Portugal

The scenario changes significantly when moving beyond the minimum wage. Depending on the field:

Technical, specialized, and managerial roles earn 2, 3, or even 4 times more than the minimum. Engineers, programmers, healthcare professionals, and managers are usually well above this range. Operational jobs and those without specific qualifications tend to hover around the minimum or just above.

Considering a 40-hour workweek:

• Monthly hours worked: 176h
• Hourly rate at minimum: ~€4.94

Spending in Portugal: real numbers of the cost of living

Here’s the less glamorous side. Portugal is indeed cheaper compared to countries like Switzerland, Denmark, or Norway, but for those coming from Brazil, the numbers can be shocking — not always in a positive way.

According to European cost of living analyses:

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

Portugal ranks as the 2nd most affordable country in Western Europe, but everything is relative.

What you actually spend:

Food costs vary widely. A set menu meal costs around €12, a simple burger €8. Proteins: chicken €3.36 per half kilo, cheese €4.90. Fruits and vegetables fluctuate with the season.

Housing is the biggest budget drain. A T2 apartment (2 bedrooms) in a desirable neighborhood in Lisbon or Porto costs around €1,518. In more peripheral areas, €1,005. Studios €729. Outside the capitals, prices drop significantly.

Transport: gasoline €1.69/liter, monthly bus pass €35 in Lisbon. Owning a car requires planning.

Various services: gym €34/month, electricity+water+gas €112, private medical consultation €65.

Can you live on the minimum wage in Portugal?

Yes, but with important caveats. It all depends on:

Location: Lisbon and Porto are much more demanding on the budget. Smaller cities like Covilhã, Guarda, or Castelo Branco are much more manageable.

Standard of living: strict expense control versus a relaxed spending routine

Responsibilities: living alone is different from supporting dependents

In capitals, those earning only the minimum feel the pinch. In medium-sized cities, the situation improves considerably.

Portugal versus Brazil: who pays more (and who charges more)

The comparison most Brazilians make deserves a caveat. In gross numbers, €870 far exceeds Brazil’s minimum of R$1,518 — the conversion is around R$5,500–R$5,600 depending on the exchange rate. Three times higher.

But the net income in Portugal, after €95.70 in mandatory contributions, is about €774.30. In Brazil, deductions tend to be smaller percentage-wise, leaving more of the gross salary in the pocket.

Portugal charges more for everything: rent, food, services. Your money goes less far, despite being nominally higher.

The real difference: skilled professionals earn significantly more in Portugal. An engineer or developer in Portugal earns 2-3x more than their Brazilian counterpart. That’s where the balance shifts dramatically.

For those considering moving: what really matters

Before making any decision, analyze:

• What is your profession and how much does it actually pay in Portugal (not just the minimum)
• Which city you choose — costs vary greatly
• Your fixed expenses — rent consumes 40-60% of the average income
• Growth opportunities — Portugal offers stability, but salary progression depends on the sector
• Your family situation — dependents drastically change the calculation

Conclusion

The minimum wage in Portugal of €870 is a reality in 2025, but only part of the picture. For Brazilians, moving to Portugal makes more sense when you have professional qualifications, valuable experience, and medium/long-term goals. Living on just the minimum is possible in small or medium-sized cities, but in Lisbon and Porto, it requires strict discipline.

The decision shouldn’t be based solely on converting euros to reais and being impressed. Consider your specific earning potential, the cost of living where you plan to live, taxes, and whether the benefits of security, quality of life, and professional opportunities justify the move. For those with education and willing to invest in growth, Portugal offers solid prospects. For those relying solely on the minimum wage, the scenario is much more challenging.