Working in Portugal: what you really receive as Portugal's minimum wage

Many Brazilians dream of living in Portugal, imagining earning in euros and enjoying the European quality of life. But the financial reality is more complex than it seems. In 2025, the minimum wage in Portugal reached €870 per month in the mainland region — an amount that, at first glance, seems attractive. Converting to reais, we’re talking about approximately R$ 5,584. However, after mandatory deductions and considering the actual cost of living in Portuguese cities, the scenario changes quite a bit. This article reveals how much you actually take home and whether the move is financially worthwhile.

The new Portuguese minimum wage: real values for 2025

Portugal adjusted its minimum wage again in 2025, following a government strategy of gradual appreciation. The figures are:

• Mainland: €870 per month (increase of €50 compared to 2024)
• Madeira: €913.50 per month
• Azores: €915 per month

This progression shows Portugal’s effort to approach the European average, although the country still remains among those offering the lowest minimum wages in Western Europe according to data from European statistical agencies.

In terms of conversion, €870 corresponds to about R$ 5,584 — but this is the gross amount. What actually enters the bank account is significantly less.

How much actually gets into your account: mandatory deductions on Portugal’s minimum wage

Portugal’s deduction system is straightforward and mandatory. The main ones are:

Social Security (11%) — applied to all workers without exception. On €870, this represents an automatic reduction of €95.70.

IRS (Imposto sobre o Rendimento das Pessoas Singulares) — similar to Brazilian income tax, varies according to family situation and dependents. Usually, it does not apply to those earning only the minimum wage, but it’s important to check your personal situation.

Applying only the Social Security deduction, a worker earning the minimum wage in Portugal takes home approximately €774.30 — a difference of €95.70 from the gross amount.

If there is IRS withholding, this amount decreases further. For practical purposes, consider a net salary around €750 to €770 per month for those earning only the minimum.

Historical evolution: how Portugal got here

In recent years, Portugal has implemented consistent increases in the minimum wage:

• 2023: €705
• 2024: €820
• 2025: €870

This trajectory reflects political commitment to valuing work, but Portugal remains one of the countries with the lowest purchasing power among Western European nations.

Variations by region and profession

The minimum wage in Portugal is applied nationwide, but actual remuneration varies significantly depending on the field. Skilled professions — engineering, technology, specialized health — earn considerably more, sometimes two, three, or even four times the minimum. This makes migration much more attractive for professionals with higher education.

Regarding hourly rate, the minimum wage in Portugal (€870) divided by 176 monthly hours results in approximately €4.94 per hour, or about €435 in part-time regime.

The cost of living in Portugal: what they don’t tell you

Here’s the critical point. Earning €870 is one thing; living with €774 net is quite another.

Housing — the biggest monthly expense. A T2 (two-bedroom apartment) in a prime area of Lisbon or Porto costs around €1,518. In more distant neighborhoods, €1,005. A studio in a common area costs €729.

Food — an executive menu in a mid-range restaurant costs €12. Chicken (500g) costs €3.36, cheese €4.90. Fast food stays around €8.

Transport — a monthly public transport pass costs €35. Gasoline is €1.69 per liter.

Utilities — electricity, water, and gas together average €112 per month. Gym membership: €34. Private medical consultation: €65.

Real situation for those earning the minimum: with €774 net rent, after paying rent (even in a common area, €729), only €45 remains for everything else — food, transportation, health, clothing. It’s practically impossible.

Living on Portugal’s minimum wage: is it really feasible?

The honest answer: it depends a lot.

In big cities (Lisbon, Porto): extremely difficult. Rent alone consumes 94% of net income. It’s unsustainable without additional income, savings, or family support.

In medium or small towns: more feasible, though it requires strict financial discipline. Cities like Covilhã, Guarda, or Castelo Branco offer much more affordable rent (€400 to €500).

Outside urban areas: possible, but with reduced quality of life and limited access to services.

Practical conclusion: those earning only the minimum wage in Portugal need to live outside major urban centers or have additional income sources.

Portugal vs Brazil comparison: what changes for Brazilians

A Brazilian earning the Brazilian minimum wage in 2025 (R$ 1,518) is, nominally, far behind. The minimum wage in Portugal (€870 = R$ 5,500+) is more than three times higher.

However, the scenario quickly balances out:

In Brazil: a minimum wage allows rent in the outskirts (R$ 300-500), basic food (R$ 200-300), transportation (R$ 100). There’s some relative slack.

In Portugal: €870 gross becomes €774 net, while rent consumes €729. There’s no slack.

The upside: those with professional qualifications. A technician, engineer, or IT professional in Portugal earns €1,500 to €3,000+ monthly — here, the advantage is clear and sustainable. For qualified professionals, Portugal offers significantly higher purchasing power than Brazil, even considering taxes and higher costs.

Future trends of Portugal’s minimum wage

The Portuguese government maintains a commitment to annual increases until 2026, suggesting a continuous move toward higher values. The implicit goal is to approach €1,000 in the coming years, aligning better with the European average.

This is positive for those planning to work there, but it’s important to note that costs (especially housing) also continue rising, mainly in Lisbon and Porto.

Final decision: is migrating to Portugal worth it?

For those earning only the minimum wage in Portugal: the move is challenging. It requires careful planning, choosing small towns or inland regions, and possibly supplementing income through remote work or own business.

For qualified professionals: Portugal offers real earnings, institutional stability, access to quality health and education, and a higher quality of life. It’s very worthwhile.

For Brazilians specifically: consider your earning potential in your profession in Portugal, not just the minimum wage. In-demand professions earn well above that. Study the specific city where you live (don’t consider Lisbon/Porto as a general reference), negotiate a salary above the minimum when possible, and have a financial reserve for the first months while adapting.

The real decision goes beyond numbers: it involves quality of life, safety, access to services, growth prospects, and alignment with your long-term personal goals.