Understanding the Minimum Wage in Portugal Today: Values, Deductions, and Financial Reality

The minimum wage in Portugal today represents a key topic for those considering a professional life change to the European country. For Brazilians in particular, understanding not only the nominal value but also what is actually received after deductions and how this relates to the real cost of living is crucial to assess whether the transition is feasible. This article breaks down the complete equation: how much actually goes into the bank account, how much is spent on essential expenses, and whether migrating to Portugal is truly worthwhile.

The Numbers of the Minimum Wage in Portugal Today

In 2025, Portugal set its minimum wage at €870 per month for the mainland — a significant increase from €820 in 2024. In the autonomous islands, the values are slightly higher:

• Madeira: €913.50
• Azores: €915

To put this into Brazilian currency, this minimum wage in Portugal today is approximately R$5,584, which is more than three times the Brazilian minimum wage. However, this numerical comparison can be misleading if the broader economic context is not considered.

The policy of annual adjustments, planned until 2026, reflects a government effort to align wages with European standards, even though Portugal maintains an intermediate position within the European Union regarding minimum wages.

The Real Impact of Deductions: From Gross to Net

Here lies a critical point that radically changes the perspective: the minimum wage in Portugal today, in practice, is less than the €870 announced.

The two main applicable deductions:

The Social Security deducts 11% obligatorily from every worker. For those earning the minimum wage, this amounts to €95.70 per month.

The IRS (Personal Income Tax) depends on family situation and number of dependents. Although the minimum wage is often exempt from IRS, specific situations may result in withholding.

Practical scenario:

• Gross salary: €870
• Social Security deduction (11%): €95.70
• Base net salary: €774.30

If IRS withholding applies, the available amount decreases further. Therefore, someone expecting €870 should realistically calculate with about €750 to €780 actually deposited.

How Much Do You Earn Per Hour? The Hourly Work Perspective

With a standard 40-hour workweek spread over approximately 176 hours per month, the minimum wage in Portugal today becomes:

• Hourly rate: €4.94 per hour
• Part-time work (20h/week): ~€435/month

For context: professionals with specific qualifications often earn 2 to 4 times this hourly rate, opening significantly different career prospects in technical, health, technology, and management fields.

How Much Does It Really Cost to Live in Portugal?

The minimum wage in Portugal today only makes sense when compared to what is actually spent. Portugal is the second most affordable country in Western Europe, but that doesn’t mean cheap in absolute terms.

Estimated monthly expenses for one person: €1,800 to €1,900 — covering rent, food, transportation, and basic services.

For a family of four: €3,300 to €3,500 per month.

Breakdown of common costs:

Food: A quick meal costs about €8, while a set menu is around €12. Products like chicken (€3.36 for 500g) and cheese (€4.90 for 500g) have moderate prices in supermarkets.

Housing: A T2 apartment (85m²) in a high-demand area costs €1,518, while the same size in a less central zone costs around €1,005. Studios in less central areas cost approximately €729.

Mobility: Gasoline is sold at €1.69/liter. A monthly public transport pass costs €35.

Other services: Gym: €34; Electricity, water, and gas combined: €112; Private medical consultation: €65.

The Financial Equation: Is It Viable to Live on Minimum Wage in Portugal Today?

Technically yes, but with important caveats. Someone earning the minimum wage with €770 net income can cover basic expenses in medium-sized cities or suburbs of Lisbon and Porto — which means shared housing, careful eating, and no major luxuries.

However, in central areas of Lisbon and Porto, where rent consumes €1,200 or more, the equation quickly collapses. The minimum wage in Portugal today in these locations barely covers housing and food, leaving little for other costs.

Viability critically depends on:

• Chosen location (capital vs. medium city vs. interior)
• Possibility of shared housing
• Lifestyle and discretionary spending
• Access to benefits or government support

Comparison with Brazil: Beyond Gross Numbers

The Brazilian minimum wage in 2025 is R$1,518, while Portugal offers €870 (≈ R$5,500). The ratio is about 3.6 times higher in Portugal.

However, the cost of living in Portugal is also 3 to 3.5 times higher than in Brazil in categories like rent, food, and utilities. Additionally, in Portugal, workers face an 11% mandatory Social Security contribution, whereas in Brazil the deduction is lower, and salary progression by professional qualification is more pronounced in Portugal.

Comparative conclusion: A qualified Brazilian has more to gain by migrating to Portugal than someone expecting to live solely on the minimum wage. For professionals without specific qualifications, the improvement margin is marginal when adjusted for the cost of living.

Long-Term Perspective: When Does Portugal Make Sense?

For qualified workers — programmers, engineers, health professionals, tech specialists — Portugal offers salaries 50% to 100% above the European average in some sectors, combined with controlled living costs. In these cases, the move is economically advantageous.

For those earning only the minimum wage in Portugal today, the experience is heavily influenced by the city, the potential for professional progression, and personal financial planning.

The decision to migrate should consider: the salary potential of the profession (not just the minimum), specific city costs, market demand for your experience, and personal goals over 5-10 years.

Final Summary

The minimum wage in Portugal today of €870 seems attractive numerically, but the net reality is €750-780 after deductions. Compared to Brazil, it offers higher purchasing power, but Portugal charges significantly more to live, especially in Lisbon and Porto. Moving to Portugal is more promising for qualified professionals than for those relying solely on the minimum wage.