Minimum wage Portugal 2025: All the news about it

The minimum wage in Portugal

The Minimum Wage is the minimum amount that a worker must receive for their work within Portuguese territory. Its setting responds to economic and social criteria, establishing a balance between the protection of employees and the sustainability of companies. 

In Portugal, the Minimum Wage is determined annually by the government after consultation with trade unions and employers’ organisations.

For 2025, the Portuguese government has announced an increase in the minimum wage with the aim of continuing with the policy of progressive increase, in line with the European Union’s commitment to reduce wage inequality.

Who is affected by the increase in the Minimum Wage in Portugal at 2025?

The increase in the Minimum Wage in Portugal in 2025 has a direct impact on the following sectors and workers:

1. Employees with an employment contract: All workers with an employment contract under Portuguese law will receive, at least, the new minimum wage.
2. Part-time workers: In these cases, the remuneration is adjusted proportionally to the number of hours worked.
3. Young people and trainees: Although some labour regimes provide for lower remuneration, in general, the increase in the minimum wage has an impact on these categories. (internships have salaries higher than the minimum wage)
4. Companies and employers: They must adapt their salary scales to comply with current legislation, which implies an adjustment in labor costs.
5. Public and private sector: The measure affects all entities that employ paid workers based on the Minimum Wage.

Evolution of the minimum wage in Portugal

The Minimum Wage in Portugal has experienced sustained growth in recent years, in line with the government’s strategy of strengthening the labour market and increasing the purchasing power of citizens. 

In 2025 the minimum wage in mainland Portugal and autonomous regions is as follows:

• Mainland Portugal (Year 2025): 870€.
• Autonomous region of the Azores: 913,5€.
• Autonomous region of Madeira: 915€.

The Portuguese government’s goal is to reach a minimum wage of 1,000 euros per month in the coming years.

What is Portugal’s annual minimum wage in 2025?

The annual Minimum Wage is calculated by multiplying the monthly Minimum Wage by 14 payments (12 months plus summer and Christmas bonuses). So, the annual minimum wage would be 12,180 euros. To this amount, the food allowance must be added, which is mandatory in Portugal.

What is the Minimum Wage per day in Portugal?

The minimum daily wage in Portugal is obtained by dividing the monthly Minimum Wage by the working days of the month. In a month of 22 business days, the calculation would be:

870 euros / 22, the daily Minimum Wage would be approximately 39.5 euros. But, in Portugal, the payroll usually indicates 30 / 31 days per month.

Are there retroactive effects on Portugal’s Minimum Wage hike in 2025?

In general, increases in the minimum wage do not have retroactive effects, unless specific regulations indicate this. In most cases, the new salary takes effect from January 1, 2025.

Can there be compensation in the increase in the Minimum Wage in Portugal with non-salary payments?

The minimum wage refers exclusively to the basic salary and does not include non-salary payments such as:

1. Allowances or travel expenses.
2. Supplements for night or dangerousness.
3. Variable bonuses or incentives.

However, some companies may restructure their compensation systems to adapt to the new regulations without significantly increasing their wage bill.

The Minimum Wage in Portugal at 2025 represents a further step in improving the wage conditions of Portuguese workers. Its increase not only impacts purchasing power, but also the country’s competitiveness and the stability of the labor market.

Companies and employees must adapt to these changes and comply with current regulations to ensure the correct application of the new salary provisions.