Understanding the salary in Portugal 2025: actual values, deductions, and financial viability

Who dreams of moving to Portugal often starts with the same question: will the money I receive there cover my expenses? To answer this properly, it’s necessary to go beyond the gross number presented in job ads. In this article, we reveal the actual salary values in Portugal, the impact of tax obligations, and how all of this fits into the real monthly budget of an individual or family.

The numbers: how much is earned in Portugal in 2025

The salary in Portugal for 2025 is set at €870 per month in the mainland — an increase from €820 the previous year. In the autonomous islands, the picture is slightly more favorable:

• Madeira: €913.50
• Azores: €915

When translating this amount into Brazilian purchasing power, it reaches approximately R$5,584. It seems substantial compared to the local minimum wage, but the analysis cannot stop here — the Portuguese reality requires more nuance.

Within Western Europe, Portugal continues to rank lower on salary tables. According to Eurostat, only some Eastern European countries have lower minimum thresholds. However, most professionals in in-demand sectors earn well above the minimum.

What actually arrives in the bank account: mandatory deductions

Between the promised salary and the money actually deposited, there is a significant gap. The main deductions are:

Social Security Contribution — 11%
Applicable to all employees. On €870, this amounts to a €95.70 automatic deduction.

IRS — Personal Income Tax
Only applies when income exceeds the minimum threshold. The percentage varies depending on family status, dependents, and other specific circumstances.

Practical calculation:

• Gross amount: €870
• Social Security (11%): €95.70
• Net before IRS: €774.30

Depending on personal circumstances, IRS can reduce this final amount further. Those earning exactly the minimum benefit from a reduced tax burden but are not exempt.

Recent trends: convergence towards European standards

The last five years have seen consecutive increases in salaries in Portugal. This trajectory reflects a government strategy of gradual convergence with continental averages. However, the path remains long — Portugal remains among the economies with the most modest wages in Western Europe.

How much do professionals earn in Portugal

Salary dispersion by sector is pronounced. Technicians, engineers, healthcare professionals, and tech specialists earn incomes that multiply the base salary in Portugal, often between 1.5 and 4 times higher.

Administrative support, retail, and hospitality jobs hover near the minimum, with some moderate increases.

The figures below refer to monthly compensation based on a 40-hour workweek.

Hourly rate: how much does one hour of work cost

Dividing the salary in Portugal by the actual hours worked:

• Standard month: 176 hours
• Hourly rate: approximately €4.94
• Part-time work (half): about €435 per month

Skilled professions negotiate hourly rates two, three, or even four times higher.

How much is spent in Portugal: real breakdown

For a meaningful analysis, let’s consider the Expatistan Index as a reference:

• Single individual: €1,800/month
• Couple with two children: €3,304/month

Portugal ranks as the second most economical country in Western Europe — only surpassed by some specific territories.

Food and groceries:

• Casual meal: €8–10
• Business menu at a restaurant: €12–15
• Half a kilo of chicken: €3.36
• Half a kilo of cheese: €4.90

Housing — the biggest expense:

• T2 apartment (85m²) in a sought-after area: €1,518
• T2 in a standard area: €1,005
• Studio in a standard area: €729

Mobility:

• Fuel: €1.69 per liter
• Public transport pass: €35/month

Utilities and leisure:

• Gym: €34
• Essential services (electricity, water, heating): €112
• Private medical consultation: €65

Is it feasible to subsist on the minimum salary in Portugal?

The answer is “it depends.” With €774 after mandatory deductions, the equation becomes tight but not impossible — especially in second-tier cities.

In Lisbon and Porto, the challenge multiplies. Rent alone consumes 40-50% of available income, leaving little room for food, transportation, and unforeseen expenses.

In mid-sized cities, the budget pressure decreases substantially. Adaptation becomes genuinely feasible with financial discipline.

Comparison: salary in Portugal versus Brazil — what really matters

Many rely on raw numbers for evaluation. €870 converted equals R$5,500–R$5,600 — more than three times the Brazilian minimum wage. The conclusion seems obvious.

However, this methodology ignores critical factors:

Portugal charges for living:
The average rent in Lisbon (€1,200–1,500) accounts for 60-75% of a minimum wage. In Brazil, proportionally in large cities, the pressure is similar or slightly lower.

Food, transportation, insurance — all calibrated for more developed economies.

Brazil offers certain advantages:
Some costs — particularly processed food, fuel, and services — can have more favorable ratios. The Portuguese salary deduction is also higher than the Brazilian one.

The balance of disposable income:
After paying for essentials in both countries, the actual difference can be surprisingly small for those earning the minimum.

Where Portugal stands out:
Specialized professionals earn globally higher salaries. A developer, nurse, engineer, or specialized technician in Portugal earns 40-60% above the Brazilian equivalent, often with lower operational costs.

Final analysis: when does it make sense to move

For workers with qualifications or valuable experience in the Portuguese market — the answer is yes. Stability, a robust social system, and growth potential justify the move.

For those aiming only for the minimum wage — serious reflection is needed. Feasibility depends on: chosen location, lifestyle, family composition, and realistic career prospects.

Deciding solely based on numerical comparison is unwise. Analyzing the full context — job market in your profession, costs in the specific city, tax burden, political stability, and personal well-being — makes the decision well-founded.

Portugal offers solid opportunities, especially for those with distinguished credentials. But for unskilled workers, a realistic assessment is required: the salary in Portugal is worthwhile when aligned with your profession, region, and medium-term personal goals.