Minimum Wage in Portugal: Rates, Trends & Compliance

If you’re hiring in Portugal, it’s important to adhere to the latest laws surrounding minimum wage to remain compliant as an employer. Learn what the updated minimum wage is, how it applies to different workers, and factors influencing minimum wage in Portugal.

Iconic landmark in Portugal

Capital City

Lisbon

Currency

Euro

(

)

Timezone

WET

(

GMT +0

)

Payroll

monthly

Employment Cost

26.50%

What Is the Minimum Wage in Portugal?

As of January 1, 2025, the national minimum wage in Portugal is €870 per month, with higher rates in Madeira (€915) and the Azores (€913.50).

The minimum wage is calculated based on 14 payments per year, including the standard 12 monthly salaries plus two additional payments (a Christmas bonus and a holiday bonus). When spread over 12 months, this equates to approximately €1,015 per month. In U.S. dollars, this is roughly $1,100 per month, subject to exchange rates.

How Does Minimum Wage Apply to Different Workers in Portugal?

Portugal's minimum wage laws ensure fair pay for various types of employees. While the standard minimum wage applies broadly, there are different considerations for full-time workers, part-time workers, interns, trainees, and expatriates.

Full-Time Employee Wages

Full-time employees in Portugal are entitled to the national minimum wage, which is €920 per month as of January 1, 2026, based on a standard 40-hour workweek. In practice, many workers earn more than this, as collective bargaining agreements in certain industries set higher minimum pay levels.

Part-Time Employee Wages

Part-time employees are paid on a pro-rata basis, depending on the hours they work. For example, someone working 20 hours per week – half of a full-time schedule – must receive at least €460 per month, which is half of the full-time minimum wage.

Interns and Trainees

Whether interns and trainees are entitled to the minimum wage depends on the type of programme. Some structured or government-supported traineeships have fixed stipend rules, while other internships may be paid differently depending on the arrangement. Apprentices and trainees enrolled in certified training programmes may legally receive a reduced minimum wage (up to a 20% reduction) for a limited period, typically up to one year.

Expatriates

Expatriates working in Portugal are generally subject to the same minimum wage laws as local employees unless specific exemptions apply based on bilateral agreements or contractual terms.

Factors Influencing Minimum Wage in Portugal

Minimum wage levels in Portugal are shaped by a combination of industry practices, economic conditions, and government policy. While there is a national minimum wage that applies across the country, several factors influence how and when it’s adjusted – and how much workers actually earn in practice.

Industry-Specific Variations

Portugal’s national minimum wage sets a baseline, but many industries pay more than this through collective bargaining agreements. Sectors with higher demand for skilled or specialised labour often negotiate higher minimum pay to stay competitive and attract workers.

Economic Conditions

Economic factors such as inflation, cost of living, and employment levels play a key role in minimum wage decisions. In recent years, rising prices and broader EU guidance around fair pay have influenced Portugal’s approach, with the goal of ensuring minimum wages remain meaningful relative to average earnings.

Government Policies and Legislation

The Portuguese government reviews and adjusts the minimum wage on a regular basis. As of January 1, 2026, the national minimum wage stands at €920 per month, up from €870 in 2025. This increase is part of a longer-term government roadmap to gradually raise the minimum wage to €1,020 by 2028, reflecting ongoing efforts to improve income levels while balancing economic sustainability.

Minimum Wage History and Trends in Portugal

Portugal has steadily increased its minimum wage over the past decade as part of a broader effort to improve living standards and reduce income inequality. These regular increases reflect rising living costs as well as a policy focus on narrowing wage gaps across the workforce.

As of January 1, 2026, the national minimum wage stands at €920 per month, continuing an upward trend from prior years. The government has set out a longer-term roadmap to further raise the minimum wage to €1,020 per month by 2028, signalling an ongoing commitment to gradual, predictable wage growth rather than sudden increases.

How To Stay Compliant When Hiring in Portugal With Playroll

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  • Scale your global team: Legally hire and swiftly onboard new hires in 180+ regions without the red tape by offloading the HR admin to Playroll, so you can freely explore new markets and focus on growth.
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  • Meet minimum wage requirements: Our built-in compliance checks and vetted contracts mean your agreements will always meet all legal requirements for statutory benefits, minimum wage, and more.

Disclaimer

THIS CONTENT IS FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSTITUTE LEGAL OR TAX ADVICE. You should always consult with and rely on your own legal and/or tax advisor(s). Playroll does not provide legal or tax advice. The information is general and not tailored to a specific company or workforce and does not reflect Playroll’s product delivery in any given jurisdiction. Playroll makes no representations or warranties concerning the accuracy, completeness, or timeliness of this information and shall have no liability arising out of or in connection with it, including any loss caused by use of, or reliance on, the information.

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ABOUT THE AUTHOR

Milani Notshe

Milani is a seasoned research and content specialist at Playroll, a leading Employer Of Record (EOR) provider. Backed by a strong background in Politics, Philosophy and Economics, she specializes in identifying emerging compliance and global HR trends to keep employers up to date on the global employment landscape.

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FAQs About Minimum Wage in Portugal

What is the current hourly or daily minimum wage in Portugal?

As of January 1, 2026, the minimum monthly wage in Portugal is €920. This national minimum applies across mainland Portugal and represents a €50 increase from the €870 rate in 2025.

For a standard 40-hour workweek, this roughly translates to about €5.75 per hour (€920 ÷ 160 hours), though daily and hourly equivalents depend on actual hours worked. In autonomous regions like Madeira and the Azores, slightly higher minimum rates may apply as set by regional authorities.

Are there exceptions to the minimum wage law in Portugal?

Yes. Certain internships and training programs may have different remuneration structures. According to Portuguese labor regulations, assistants, apprentices, and trainees in certified training programs may receive a minimum wage reduced by 20%, for a maximum period of one year. Additionally, some industries or regions may have variations based on collective bargaining agreements or specific regulations.

How often is the minimum wage reviewed in Portugal?

The Portuguese government typically reviews and adjusts the minimum wage annually, often in consultation with labor unions and employer associations.

What is the minimum wage vs. living wage in Portugal?

The minimum wage is the legally mandated lowest amount employers must pay employees in Portugal and is set at €920 per month as of January 1, 2026. A living wage, by contrast, reflects the income needed to cover basic expenses such as housing, food, and transportation. While recent increases have raised the statutory minimum wage, debate continues over whether it fully reflects the actual cost of living, particularly in higher-cost regions like Lisbon and other urban areas.