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.

In terms of standard of living and average income, Portugal is ahead of many EU countries, mainly in the central and eastern part of Europe, but lags far behind developed countries such as Germany, France or the Netherlands. In addition to employment, many foreigners open their own business in Portugal or invest heavily in property, which allows them to obtain 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 figures, the minimum wage in Portugal in 2024 (before taxes) is €820 per month if paid 14 times during the year and €956.7 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. This is the average for the European Union.

For example, higher than in Poland and the Czech Republic, but lower compared to neighbouring Spain, not to mention the more successful countries of Western Europe. For example, the minimum wage in France in 2024 is €1,766.92. 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 was 485 euros. Today, about 23.3% of workers in Portugal are paid the minimum wage.

Note. In Madeira, the minimum wage is €850 per month and in the Azores it is €861.

Average salary in Portugal

According to local statistical offices, the average salary in Portugal in 2024 is €1,294.1 per month before taxes. After all compulsory deductions, a worker is left with about 930 euros. Men earn €1,395.7 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 average salary in Lisbon is around 977 euros, while in the autonomous region of Madeira it is 782 euros.

AVERAGE SALARY IN PORTUGAL BY OCCUPATION

Occupation	Euros per month
Representatives of legislative and executive bodies, directors, officers and managers	2,766.64
Specialists in intellectual and scientific activities	1,992.42
International agencies and institutions	1,997.5
Technicians and middle-level occupations	1,607.89
Administrative staff	1,171.53
Plant and machine operators, assemblers	1,078.17
Skilled labourers in industry, construction and crafts	1,005.12
Farmers and skilled labourers in agriculture, fishing and forestry	942.72
Personal services, security workers and salespersons	935.13
Unskilled labourers	896.27

Note. Salaries by occupation are based on current data from the National Institute of Statistics of Portugal.

Experienced professionals with higher education in Portugal earn 1,489.2 euros per month, skilled workers 867.6 euros and unskilled workers 710.2 euros. Executive salaries exceed €2,000. By sector, the leading position is occupied by the distribution of electricity, gas and water, where average salaries are in the region of 2,965.8 euros, and the least paid in the service sector (hotel and restaurant business) – 913.7 euros.

Important. According to the International Labour Organisation, Portugal has one of the highest pay gaps for migrants. Foreigners earn on average 28.9% less than local citizens. One of the main reasons is that no more than 20% of foreign workers hold highly skilled positions.

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 (euros)	Tax rate (%)
From 0 to €7,703	13.25%
From €7,703 to €11,623	18%
From €11,623 to €16,472	23%
From €16,472 to €21,321	26%
From €21,321 to €27,146	32.75%
From €27,146 to €39,791	37%
From €39,791 to €51,997	43.5%
From €51,997 to €81,199	45%
Over €81,199	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%.

HIGHEST PAID OCCUPATIONS IN PORTUGAL

• Doctors

• Programmers

• Lawyers

• Bankers, financiers

• Engineers in management positions

• Chief Executive Officers (CEOs)

• Airline pilots

• University professors and researchers

• Marketing and sales directors

• Cybersecurity experts

Cost of living in Portugal

Compared to most Western European countries, living in Portugal is quite cheap. The most expensive cities to live in are Lisbon and Porto.

Basic costs in Portugal:

• Rent: 900-1,000 euros per month for a one-bedroom flat in the centre.

• Utility bills: 100-120 euros per month.

• Food: 150-200 euros per month per person.

• Transport: 40-50 euros per month by public transport or 100-150 euros per month by car.

• Internet/mobile phone: 50-60 euros per month.

• Clothing and leisure activities: 400-600 euros per month.

Frequently asked questions about salaries in Portugal:

1. What is the average salary in Portugal?

• Before taxes, the average salary in Portugal in 2024 is €1,294.1 per month.

2. What is the minimum wage in Portugal?

• The minimum wage in Portugal in 2024 is €820 per month (assuming 14 payments during the year).

3. What is the highest earning job in Portugal?

• The highest paid professions in Portugal are computer programmers, doctors and lawyers.

4. What is the lowest paying job in Portugal?

• Representatives of unskilled labour – cleaners, waiters, cooks' assistants, loaders, shop assistants, maids and so on – earn the least in Portugal.

5. What is the average salary of programmers in Portugal?

• The average income of programmers in Portugal is estimated at 40,000-60,000 euros per year.

6. What is the payroll tax in Portugal?

• The income tax rate in Portugal depends on annual income and ranges from 13.25% (income up to €7,703) to 48% (income over €81,199).

7. What is the average salary in Lisbon?

• The average salary in Lisbon in 2024 is €977 per month after tax.

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