MINIMUM AND AVERAGE SALARY IN PORTUGAL

Portugal is struggling to overcome the effects of the global financial crisis, which has had a significant impact on important socio-economic indicators of the country. In particular, the unemployment rate, although noticeably reduced, exceeds 20% among young people. Even young professionals who have graduated from prestigious Portuguese universities are often unable to find decent jobs in Portugal with high salaries.

Salary in Portugal

In terms of standard of living and average income, Portugal is ahead of many EU countries, mainly in central and eastern Europe, but lags significantly behind developed countries such as Germany, France or the Netherlands. In addition to employment, many foreigners open their own business in Portugal or invest large amounts of money in real estate, which allows you to get a Portuguese residence permit and stay in the country for a long time. Let's find out what salary in Portugal in 2024.

Minimum wage in Portugal

According to official local government data, the minimum wage in Portugal in 2024 (before taxes) is 820 euros per month if paid 14 times during the year and 956.7 euros if paid exactly 12 times. This amount is guaranteed to every full-time professional over 18 years of age, including agricultural workers and domestic staff. The annual minimum wage in Portugal is 11,480 euros. This is the average for the European Union.

For example, higher than in Poland and the Czech Republic, but lower compared to neighboring Spain, not to mention the more successful countries of Western Europe. For example, the minimum wage in France in 2024 is 1,766.92 euros. In general, over the last 10 years, the minimum income of the Portuguese has increased by only 230.8 euros. And between 2011 and 2014, the rate did not increase and amounted to 485 euros. Today, about 23.3% of workers in Portugal are paid at the minimum wage.

Average salary in Portugal

According to local statistical offices, the average salary in Portugal in 2024 is 1,294.1 euros per month before taxes. After all mandatory deductions, a worker is left with about 930 euros. Men earn 1,395.7 euros per month and women 1,172.1. Compared to 2023, the average income of the Portuguese has not changed much. Of course, the level of pay depends on qualifications, profession, experience and the specific city. For example, the net (net) average salary in Lisbon is about 977 euros, and in the autonomous region of Madeira 782 euros.

Experienced professionals with higher education earn in Portugal 1,489.2 euros per month, skilled workers 867.6 euros, and workers without special qualifications 710.2 euros. Executive salaries exceed 2,000 euros. By economic sector, the leading position is occupied by the distribution of electricity, gas and water, where average salaries in the area of 2,965.8 euros, and the least paid in the service sector (hotel and restaurant business) – 913.7 euros.

AVERAGE SALARY IN PORTUGAL BY ECONOMIC SECTOR

Economic sector Euros per month
Electricity, gas and water 2,965.8
Financial and insurance activities 2,374.4
International agencies and institutions 1,997.5
Mining and quarrying 1,596
Transportation and storage 1,463.7
Education 1,415.1s
Public administration and defense 1,269.2
Manufacturing 1,224.8
Wholesale and retail trade 1,224.2
Health care and social work 1,148.8
Construction 1,103.2
Hunting, fishing, agriculture and forestry 1,011.4
Accommodation and food 913.7

Payroll taxes in Portugal

In contrast to the relatively small salaries by the standards of the European Union, taxes in Portugal are very substantial and fully comply with the standards of this association. The income of foreign workers (non-residents) earned on Portuguese territory is subject to a flat income tax rate of 25%.

Income tax in Portugal in 2024

  • Annual income of 0 to 7,703 euros – 13.25%

  • Annual income from 7,703 to 11,623 euros – 18%

  • Annual income from 11,623 to 16,472 euros – 23%

  • Annual income from 16,472 to 21,321 euros – 26%

  • Annual income from 21,321 to 27,146 euros – 32.75%

  • Annual income from 27,146 to 39 791 euros – 37%

  • Annual income from 39 791 to 51,997 euros – 43,5%

  • Annual income from 51,997 to 81,199euros – 45%

  • Annual income over 81,199 euros – 48%

In addition to income tax, a social security contribution is withheld from employees' salaries in Portugal. The total rate is 34.75%, including 11% for the employee and 23.75% for the employer. In addition, those with an income of more than €80,000 per year are required to pay an additional solidarity tax of between 2.5% and 5%.

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