What is the Minimum Wage in Portugal?

Portugal has witnessed several economic changes, including updates to its minimum wage (set to increase in 2024). So, if you’re thinking of working in or for the country (remotely), it’s best to know the minimum you’re at least entitled to.

We’ll also dig deeper into hourly rates and the general cost of living. By the end of this article, you’ll know how much you’ll need to make a living in Portugal – where many entrepreneurs are relocating to.

Minimum Wage in Portugal: Hourly Earnings and General Cost of Living

Portugal isn’t among the highest-paying countries for service jobs.

While Portugal may not top the list of countries with the highest income opportunities, it boasts numerous other appealing features. From its consistently pleasant weather and stunning beaches to its delicious cuisine and extremely low criminal rate, the country offers a quality of life beyond financial considerations.

Although the average salary in Portugal also falls below the EU average, it's essential to consider that the cost of living in the country is also comparatively lower.

The Minimum Wage in Portugal in 2023

Every year, the Government submits the State Budget for the following. Though the minimum wage proposal doesn’t always exist, it’s reviewed now and then. And that happened at the beginning of 2023 when it raised to €760 per month.

This is the value equivalent to a full-time job. Anything less than that generally pays less, too.

As you do your analysis, don’t forget we’re always mentioning gross salaries. This means that, from that value on, you have to do the math regarding taxes. If you're employed, you’ll have to pay the IRS (Personal Income Tax) and the SS (Social Security Contributions). The same happens if you’re a freelancer.

Though the Government is considering exempting the minimum wage from paying the IRS in 2024, there’s no official decision yet.

Full-Time Job in Portugal: How it Works

As in other countries, there are 2 primary ways of working in Portugal:

• Part-time: less than 40 hours a week.

• Full-time: 8 hours per day, 40 hours per week.

So, when a company employs you, those are the maximums you need to comply with.

Minimum Wage in Portugal: The Hourly Earnings

If we break down the minimum hourly wage, you earn approximately €4,40. This value excludes bonuses, so it’ll always depend on the deal you have defined with your company. However, don’t expect the hourly value to change much.

The Average Household Income in Portugal

The most recent data goes to 2022 and considers the earnings of 2 people living together.

On average, the household income is €38,904.4 – assuming that both people earn the same (which doesn’t always happen, as there are different job hierarchies and women still earn less than men worldwide). So, on average, each makes €19,452.2 per year.

This means that each person earns approximately €1.621,01 gross per month (excluding bonuses and allowances). In other words, each person makes approximately €1.266,69 after taxes (IRS and SS).

However, in the tech industry, average salaries in Portugal are higher.

Can You Live in Portugal on $2,000 a Month?

Many people consider moving to Portugal while maintaining their remote jobs.

If that’s your case, the context couldn’t be better. The cost of living is almost always lower than in countries like the US, France, or the United Kingdom. Plus, the country’s safe and offers an overall excellent quality of living.

But don’t forget that everything depends on your spending habits.

You can live in Portugal on $2000 a month (approximately €1,882.09), but it can be tight depending on your habits and the rent you pay – which doesn’t stop rising.

According to Numbeo, here’s a fair summary of the cost of living in Portugal:

• A family of 4 spends an estimated €2,167.4 per month without rent.

• A single person spends approximately 617.7€ per month without rent.

• The cost of living in Portugal is, on average, 40% lower than in the United States.

• Rent in Portugal is, on average, 54.7% lower than in the United States.

So, if you plan to live in big cities like Lisbon or Porto, expect to pay over €700 to rent a small apartment easily. In fact, the monthly rent has increased by 42% from 2017 to 2022. But, if you choose smaller cities or villages in the country's interior, for example, you can find better deals.

Understanding the nuances of the minimum wage in Portugal is vital for both residents and potential expats. From hourly rates to monthly incomes, we've covered a range of essential topics regarding the minimum salary in the country.

Living in Portugal, depending on the region, can be pretty advantageous compared to how you live right now. In general, even in Europe, the cost of living is lower. But make no mistake, there’s still much to know before moving to Portugal.