Understanding the Portuguese Minimum Wage in 2025: Financial Reality for Those Who Want to Change

When it comes to emigrating to Portugal, one of the first questions is: how much do you earn? In 2025, the Portuguese minimum wage reached €870 per month in the mainland region — an increase from €820 in 2024. In the islands, Madeira offers €913.50 and the Azores €915. But this gross number masks a more complex reality: deductions, variable cost of living by city, and real purchasing power require in-depth analysis before any decision.

What Really Counts: Deductions and Net Salary

Here’s the critical point: the Portuguese minimum wage undergoes mandatory deductions that significantly reduce the final amount.

Social Security automatically deducts 11% for everyone. On a base of €870, that amounts to €95.70 out of pocket. Then comes IRS (Income Tax), applied progressively according to income and family situation. The practical result:

• Gross salary: €870
• Social Security (11%): -€95.70
• Amount available before IRS: €774.30

If IRS is withheld, net salary drops even further. Therefore, someone earning the Portuguese minimum takes home approximately €770 — an amount that must cover all expenses.

Conversion to Reais: The Illusion of Numbers

Converting to Brazilian currency, €870 equals about R$5,600 (according to exchange rates). At first glance, this seems advantageous compared to R$1,518 of the Brazilian minimum wage.

However, this calculation is misleading. Portugal is the second cheapest country in Western Europe, but remains significantly more expensive than Brazil for essential items. A T2 rental in a prime area of Lisbon costs about €1,518 — nearly 175% of the entire minimum wage. In Brazil, R$1,518 can rent in peripheral areas at proportionally lower prices.

Real Costs: How Much Does It Cost to Live in Portugal

Monthly expense estimates vary greatly by city:

Food:

• Set menu: €12
• Fast food: €8
• Chicken (500g): €3.36
• Cheese (500g): €4.90

Housing:

• Studio in common area: €729
• T2 in common area: €1,005
• T2 in prime area: €1,518

Transport and Services:

• Monthly pass: €35
• Gasoline: €1.69 per liter
• Electricity, water, gas: €112
• Gym: €34
• Private medical consultation: €65

A realistic monthly budget for an individual in Lisbon or Porto is around €1,800. For a family of four, estimated at €3,304.

Is It Feasible to Live on the Minimum? Depends Where

The honest answer is: yes, but with important caveats.

In capital cities — Lisbon and Porto — living on €870 requires extreme budget control. Rent alone can consume up to 85% of income, leaving little for food, transportation, and emergencies. Many immigrants in this situation need additional income or family support.

In medium-sized cities (Covilhã, Guarda, Castelo Branco), the situation improves. Rents drop to €500–700, creating real space in the budget. Quality of life improves considerably.

What Is the Worth of an Hour of Work?

With a 176-hour monthly work schedule, the Portuguese minimum wage is approximately €4.94 per hour. Specialized professions — engineering, tech, healthcare — earn €10 to €20 per hour, offering much greater purchasing power.

Trajectory of the Portuguese Minimum Wage: Where Is Portugal?

Portugal maintains one of the lowest minimum wages in Western Europe, according to Eurostat data. Still, government policy shows commitment to annual increases expected until 2026. Recent evolution:

• 2024: €820
• 2025: €870

This €50 (6.1%) increase tracks inflation and labor market demands but keeps Portugal far behind countries like France, Germany, or Luxembourg.

Portugal vs Brazil: Which Offers Better Return?

The comparison goes beyond nominal numbers. While Portugal pays €870 (R$5,600+), Brazil pays R$1,518. The difference seems enormous.

But the context changes everything:

In Portugal:

• Net salary: ~€770
• Basic monthly cost: €1,800–2,000 for minimal comfort
• Deficit: -€1,030 to -€1,230 monthly just with the minimum

In Brazil:

• Net salary: close to gross (with proportionally smaller deductions)
• Basic monthly cost: R$1,200–1,500 in urban centers
• Smaller but persistent deficit

Portuguese advantage appears only with salaries above the minimum. Those working in technology, higher education, or qualified roles in Portugal earn 2 to 4 times the minimum, creating actual budget surplus.

Who Should Consider Portugal?

It makes sense for:

• Specialized professionals: with job offers in Portugal paying above average
• Entrepreneurs: with established businesses or capacity to generate additional income
• Students: taking advantage of scholarships and exchange programs
• Those seeking security: with better healthcare, education, and labor rights

It’s not suitable for those relying solely on the Portuguese minimum wage without growth prospects.

Final Decision: Look Beyond the Numbers

Portugal’s €870 minimum wage in 2025 is just one piece of the puzzle. Deciding to move requires considering:

1. Your profession’s earning potential: what is the actual floor in your sector?
2. City of choice: Lisbon costs twice as much as Viseu
3. Tax burden: progressive IRS impacts incomes above the minimum
4. Growth opportunities: is there real demand for your career?
5. Personal goals: stability, quality of life, or simply income?

Portugal offers quality of life, safety, and robust social systems — factors that go beyond pure salary comparisons. But for those earning only the minimum, the math is tight. For qualified or experienced individuals, the European country presents a very promising outlook in the medium and long term.