Portuguese Minimum Wage in 2025: Is It Really Worth Working in Portugal?

Portugal’s minimum wage remains a central topic for Brazilians considering a life change to Europe. But beyond the raw numbers, it’s essential to understand the full picture: how much actually remains in the bank account after deductions, how housing and food costs impact the budget, and whether salary progression justifies the initial expenses.

The Current Value and Expected Increases

In 2025, Portugal’s minimum wage reached €870 per month on the mainland, surpassing the €820 recorded the previous year. In the islands, the pay varies:

• Madeira: €913.50
• Azores: €915

This pattern of annual adjustments is part of a government strategy of gradual appreciation, with new revisions planned until 2026. When converted to reais, the approximate equivalent is R$5,580, more than triple the Brazilian minimum wage of R$1,518 — a difference that seems attractive until you analyze the real purchasing power.

The Dark Side: Mandatory Deductions and Net Salary

The reality of take-home pay is much less generous than the nominal figures suggest. Two main deductions reduce the amount received:

Social Security (11%): Mandatory withholding for all workers, resulting in a deduction of approximately €95.70

Portuguese Income Tax (IRS): Applied progressively based on salary level, dependents, and marital status

In practice, a worker earning the minimum wage sees their salary reduced to about €770–€780 net, if IRS withholding applies. By comparison, in Brazil, deductions on the minimum wage are proportionally smaller, allowing more of the gross amount to stay in the pocket.

How Much Does It Cost to Live in Portugal: The Decisive Factor

The real test isn’t the salary received but what remains after fixed expenses. Portugal, although the second most affordable Western European country, still demands careful financial planning — especially in urban centers like Lisbon and Porto.

Housing: A critical issue in Lisbon and Porto

• T2 apartment (85m²) in a upscale neighborhood: €1,518
• T2 apartment in a common area: €1,005
• Studio in a peripheral zone: €729

Food: Highly variable depending on habits

• Fast food meal: €8
• Lunch menu at a regular restaurant: €12
• Basic items like (500g chicken): €3.36
• (500g cheese): €4.90

Transport and Utilities:

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

A single person living alone spends approximately €1,800 per month, while a family of four spends around €3,304. The calculation is simple: with €770 net, the Portuguese minimum wage can’t even cover housing in many neighborhoods of Lisbon and Porto, requiring additional income or moving to smaller cities.

Professional Realities: Beyond the Minimum Wage

The scenario changes significantly when considering skilled professions. Engineers, IT professionals, managers, and specialists earn consistently two to four times more than the minimum, depending on experience and sector. In these cases, relocating to Portugal becomes financially feasible.

The hourly work value at minimum wage is around €4.94 (considering 176 hours per month). Specialized professions easily reach €15 to €25 per hour, completely reconfiguring the financial equation.

Direct Comparison: Portugal vs Brazil

The conclusion isn’t intuitive: although Portugal pays more in absolute terms, the financial advantage disappears when taxes and living costs are considered — especially for those earning only the minimum wage. However, for experienced professionals valued in the European market, relocation offers better prospects in the medium and long term.

Where Is It More Viable to Live on Minimum Wage?

Mid-sized cities like Covilhã, Castelo Branco, or Viseu have costs 30–40% lower compared to Lisbon and Porto. In these locations, a minimum wage, though tight, becomes more manageable. In capital cities, the same amount demands significant sacrifices or additional income.

The Final Decision

Migrating to Portugal based solely on the Portuguese minimum wage is a risky strategy. The move makes sense when:

• You have training or experience in sectors with demand (technology, health, engineering)
• You’re willing to live in smaller cities with lower costs
• You seek institutional stability and access to quality public services in the long run
• You have savings or additional family income in the initial months

For those earning only the minimum, it’s essential to evaluate opportunities for professional advancement, sector of activity, and destination city before making a decision. Portugal offers real possibilities but requires realistic planning and expectations aligned with the actual financial situation after mandatory deductions.