Learn about the minimum wage in Portugal thanks to Horizons’ up-to-date guide.
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The minimum wage in Portugal is based on a salary per month calculation.
The minimum wage in most of Portugal is €822.50 per month, assuming 12 annual payments. In practice, however, payments are paid in 14 annual installments, so the minimum payment, in this case, would be €705.
If you were to break it down into hourly pay, it would be approximately €4.40 per hour with a guaranteed two-month bonus each year. Including the bonuses, the average hourly minimum wage in Portugal would be €5.14 per hour.
Yes, Portugal has three different minimum wages: one for the Azores (€740.25 per month for 14 months), one for Madeira (€722 per month), and another for the rest of the country. However, all the minimum wages are very similar.
The national minimum wage has increased from €589.20 in 2015 to €822.50 in 2022.
The numbers below assume 12 months of pay to keep the amount comparable to other nations’ minimum wage. In reality, the payment structure in Portugal would see these numbers multiplied by 12, then divided by 14. Payment disbursements are regular monthly, with one extra month’s pay in June, and one in December.
|Portugal – Minimum Wage Over the Years|
|Date||Min. Wage, Monthly*12 months (EUR)|
Portugal has a very low minimum wage when compared with the rest of Western Europe. Even neighboring Spain has a significantly higher minimum salary. Portugal’s minimum wage is more similar to countries in Eastern Europe. Portugal does, however, have a relatively low cost of living.
There is no difference between locals and foreigners for minimum wage in Portugal. However, most foreigners working in Portugal will make significantly more than the minimum wage.
There is also a positive tax regime for foreigners living in Portugal. Foreigners living in Portugal can apply for a Non-Habitual Residency (NHR) status, giving preferential tax treatment for up to 10 years. Foreigners who are able to get NHR status have a flat tax rate of 20% for personal income tax.
In order to qualify for NHR status, the employee must have lived outside of Portugal for the last 5 years and transfer their address to Portugal for tax purposes, as well as meet other criteria.
The minimum wage in Portugal is €822.5 per month; the median salary in Portugal is €1,269 per month.
It is typically not possible to hrie skilled employees close to the minimum wage in Portugal. When screening candidates, it is best to ask their expected salary and compare this to the market standard for your industry in Portugal.
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