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Average Salary in Portugal

The average salary in Portugal is around €2,750 per month or $2,676.42. 

Portugal, a picturesque country on the Iberian Peninsula, is known for its rich culture and beautiful landscapes. It is also emerging as an attractive destination for professionals seeking job opportunities. With a growing economy, Portugal offers diverse industries and professions for locals and expats. However, potential job seekers must have an understanding of the average salary in the country to make informed career decisions.

As of 2024, the average salary in Portugal stands at €33,000 per year, which is roughly $32,117 USD according to recent exchange rates. Although this amount is lower than the average earnings in many other European countries, Portugal’s cost of living is also relatively lower. The country’s minimum wage and tax regulations play an essential role in determining the average salary, with numerous additional benefits, such as healthcare and vacation allowances, offered to employees.

Key Takeaways

  • Portugal’s average salary is €33,000 per year, which is ideal for its cost of living
  • The country offers job opportunities in a diverse range of industries and professions
  • In addition to salary, employees in Portugal enjoy various benefits like healthcare and vacation allowances

Understanding Average Salary in Portugal

Portugal, as a member of the European Union, has experienced steady economic growth over the years. However, when it comes to average salaries, the country has a lower pay scale than some of its European counterparts.

In the IT sector, for instance, Portugal offers competitive wages that often attract skilled workforce from within and outside the European Union. Professionals in this industry can earn a favorable salary compared to other jobs in the country.

One key factor that contributes to the average salary in Portugal is the level of education. According to the National Statistics Bureau (INE), having a university degree ensures a higher salary in Portugal. This highlights the importance of educational attainment in the country’s wage structure.

It is crucial to know that the minimum wage in Portugal also plays a significant role in determining the average salary. The minimum wage in mainland Portugal is currently €700 per month, based on 12 payments per year, or €580 based on 14 payments. The government reconsiders this wage annually, taking into account factors like cost-of-living increases, gross national productivity, and national price income elasticity.

Portugal minimum wage statistics

Furthermore, regional variations in Portugal’s average wages exist. For instance, Lisbon, the capital city, has higher average salaries than the rest of Portugal. Employees in Lisbon earn around €3,755 per month on average, with the most common salary being closer to €1,416 per month.

Understanding the average salary in Portugal requires considering multiple factors such as regional differences, level of education, and the prevalent industry sectors in the country. While Portugal may not offer the highest wages compared to other European nations, the lower cost of living and attractive job opportunities in specific industries still make it an appealing destination for professionals looking to advance their careers.

Jobs and Professions in Portugal

Major Sectors

Portugal has a diverse economy, with major sectors including tourism, agriculture, and manufacturing. Additionally, technology and biotechnology industries are increasingly taking up a significant portion of the workforce. The country also offers opportunities for highly skilled professionals in education, especially those with advanced degrees.

Jobs in Tech

The technology sector is growing rapidly in Portugal, attracting both local and international talent. The average salary in Portugal for the most recent year (2022) is 33,000 EUR per year. Portugal is quickly becoming one of the most popular outsourcing destinations in Europe due to its balance of lower salaries and a competent workforce. Major technology-related job roles in Portugal include software developers, data analysts, and IT support specialists.

Portugal best paid jobs

Jobs in Biotechnology

The biotechnology sector is also on the rise in Portugal, with a strong focus on research and development. This sector offers various job opportunities, including positions for research scientists, bioinformaticians, and laboratory technicians. Professionals in this field are typically required to have an advanced degree, such as a master’s or doctorate in a relevant field like molecular biology, biochemistry, or genetics.

Jobs in Education

Education is another significant sector in Portugal, with numerous opportunities for both local and foreign professionals. Teachers are in high demand, especially those who can teach in international schools or specialize in specific subjects. Salaries in education can vary based on factors like experience, qualifications, and the type of school where one is employed. Besides teachers, other roles in education include administrative staff, school counselors, and academic researchers.

These industries offer promising prospects for individuals with relevant skills, degrees, and experience, contributing to the country’s economic growth and development.

Factors Affecting Salaries in Portugal

Level of Education

The level of education plays a significant role in determining an individual’s salary in Portugal. A higher level of education, such as a university degree, typically leads to better job opportunities and higher wages. Professionals with specialized skills or advanced degrees are in higher demand and tend to earn more than those without such qualifications.

Job Location

Another important factor that affects salaries in Portugal is job location. Salaries can vary greatly depending on the region, city, or even the specific area within a city. Generally, larger cities, such as Lisbon and Porto, offer higher salaries compared to smaller towns and rural areas. This is because bigger cities have more job opportunities in sectors with higher-paying positions, like technology and finance.

Remote Work

Remote work has been increasing, especially since the pandemic, and it can have an impact on salaries as well. Employees who work remotely may have more flexibility in choosing their place of residence, which can affect their cost of living and salary expectations. Additionally, remote work opportunities also enable employees to find jobs with companies located in other countries, potentially providing access to higher salaries. On the other hand, some employers may offer lower salaries for remote employees, as they save on operational costs like office space and utilities.

Various factors such as an individual’s level of education, job location, and the option to work remotely contribute to the differences in salaries in Portugal. Understanding these factors can help job seekers and employees to make informed decisions about their career paths and salary expectations.

Comparison with Other EU Countries

When looking at the average salary in Portugal, it is essential to compare it with other European Union (EU) countries to understand its position within the bloc. In this section, we will examine the average salaries in France, Luxembourg, Slovenia, and Slovakia.

Salaries in France

In France, the average salary is higher than in Portugal. According to Eurostat, the average annual adjusted full-time salary in France is €41,500. This figure signifies a considerable difference when compared to Portugal’s average salary of €19,212 per year in 2021.

Salaries in Luxembourg

Luxembourg boasts the highest average annual adjusted full-time salary among EU member states, reaching €72,200 in 2021. This figure is significantly higher than the average salary in Portugal and reflects the country’s strong economic standing within the EU.

Salaries in Slovenia

Slovenia has a relatively similar average salary to Portugal. The average annual adjusted full-time salary in Slovenia stands at approximately €21,400. While higher than Portugal’s average, the difference is less significant than with countries like Luxembourg or France.

Salaries in Slovakia

Slovakia’s average salary is slightly lower than Portugal’s, with an average monthly net salary of €1,043.70, as reported by Numbeo. This figure translates to an annual net salary of around €12,524, demonstrating that there is a relatively small difference between the two countries’ average salaries.

Portugal’s average salary stands somewhere in the middle when compared to other EU countries like France, Luxembourg, Slovenia, and Slovakia. While there are noticeable differences, particularly when compared to high-income countries like Luxembourg, it is crucial to consider other factors such as the cost of living and regional variations within each country when evaluating salary comparisons.

Economic Impact on Salary

The economy plays a significant role in determining the average salary in Portugal. In recent years, there has been a steady increase in wages, reflecting an improvement in the country’s economic situation. For instance, the average salary in Portugal was 19,212 euros per year in 2021, compared with 18,794 in 2020. However, the growth in wages has been slow, with the average real base salary growing by only 0.32% per year between 2002 and 2017, rising from €879 to just €925.

Portugal nominal wage growth
Portugal Nominal Wage Growth in Services - Trading Economics

In 2022, Portugal’s total average monthly gross earnings per employee showed a growth of 3.6% compared to the previous year, reaching 1,411 euros. However, when accounting for the impact of inflation, the average salary in 2022 seemed to shrink by 4%. Additionally, salaries in Portugal are expected to increase by an average of 2.8% in 2023, which indicates an enhancement in employee compensation, albeit below the expected inflation.

The purchasing power of those earning an average salary in Portugal is also crucial to consider. With modest growth in wages and increasing inflation, households may face difficulties in accessing necessary goods and services. This underlines the importance of the economy, wages, and purchasing power when evaluating the impact of economic fluctuations on salaries in the country.

The economy has a direct influence on wages in Portugal, and recent years have witnessed a slow but steady growth in salaries. Nevertheless, when factoring in inflation, the purchasing power of individuals earning an average salary remains a concern, highlighting the need for ongoing efforts to improve economic conditions and enhance the well-being of the workforce.

Minimum Wage and Income Tax in Portugal

Minimum Wage

The national minimum wage in Portugal as of 2019 is €600 per month, calculated based on 14 payments in a year. Alternatively, it is €700 per month based on 12 payments. The government updates the minimum wage annually, taking into account factors like cost of living, national productivity, and prices and incomes policy.

Comparing the salaries in Portugal to countries like the US or the UK, they may appear low. This is partly because salaries in Portugal are calculated on a monthly basis, as opposed to the hourly wage system in the US and the UK. Converting the Portuguese minimum wage to pounds and dollars, it is equal to £594.38 or $779.88.

Income Tax

The Prime Minister of Portugal has recently stated that it “doesn’t make sense” for those who receive the national minimum wage to start paying income tax (IRS) in 2024, dismissing the possibility of such a change being implemented in the near future.

Portugal personal income

Other Benefits in Portugal

In addition to their base salaries, employees in Portugal may receive additional benefits and compensation from their employers. These additional benefits can contribute to an employee’s overall satisfaction with their job and may include elements such as paid leave, performance bonuses, and more.

One notable benefit in Portugal is the additional 13th and 14th-month salaries, which are mandatory for employers to provide. These extra payments are given in June and December, or they can be paid in twelves (1/12) each month along with the base salary.

Employers in Portugal also provide their employees with mandatory paid leave. Employees are entitled to 22 days of annual vacation leave, while special leaves are granted for various occasions, such as marriage, childbirth, or family bereavement. In the case of family bereavement, employees are entitled to up to 5 consecutive days of paid leave.

Apart from the mandatory benefits, some employers may offer non-mandatory benefits such as private health insurance, company cars, or meal vouchers, depending on the company’s policies and the position held by the employee. These additional incentives can make a significant difference in an employee’s overall compensation package and job satisfaction.

The average salary in Portugal is supplemented by a range of benefits, both mandatory and non-mandatory, that contribute to an employee’s overall compensation. Employers in Portugal play a critical role in providing these additional benefits, increasing the attractiveness of their job offers and ensuring employee satisfaction.

Moving to Portugal

Cost of Living

Portugal is a popular destination for expats and immigrants due to its affordable cost of living and enviable climate. In comparison to other European countries, Portugal has a lower overall cost of living. Food, leisure activities, and daily necessities can be quite economical, making it an attractive option for those looking to relocate. According to a source, these factors contribute to its growing reputation among foreigners moving to the country.

Non-habitual residents may enjoy tax advantages, making the financial aspect of living in Portugal even more appealing. However, these tax benefits will be changing for new residents after 2023, according to Business Insider.

Rent Prices

In terms of housing, Portugal offers a variety of options for different budgets. Rent prices depend largely on location and can vary significantly between urban and rural areas. Generally, larger cities like Lisbon and Porto have higher rental prices, while smaller towns and countryside locations are more affordable.

For those interested in moving to Portugal, it’s crucial to consider these factors when making a decision. As Portugal is one of the cheapest countries to live in Europe, it can provide a comfortable lifestyle for those willing to explore this beautiful nation.

Statistics and Data on Salaries in Portugal

In recent years, the average salary in Portugal has seen gradual growth. According to the Statista, the average annual salary in Portugal was €19,212 per year in 2021, compared to €18,794 in 2020. Moreover, Portugal’s average monthly salary is approximately €2,750 in 2023, which is notably lower than the average salary in the United States, where people earn around $7,892 per month, as reported by Time Doctor.

It’s worth noting that salaries vary significantly within Portugal, depending on factors such as region, occupation, and experience level. For instance, employees in the capital city, Lisbon, receive higher average salaries compared to other regions in the country. The average salary for employees in Lisbon is approximately €3,755 per month, while the most common salary in Lisbon is closer to €1,416 per month, as stated by Horizons.

Major national and international agencies, like Pordata and Eurostat, collect and publish salary data, contributing to a better understanding of wage trends in Portugal. Pordata, the Portuguese Database of Social Information, compiles data on various social and economic indicators, allowing for a comprehensive analysis of salary trends in the country. Similarly, Eurostat, the statistical office of the European Union, contains data on salary ranges and average earnings across European nations, including Portugal. Collectively, these sources offer valuable insights into Portugal’s labor market and economic landscape.

Specific occupations may also display distinct salary patterns. For example, a Data Analyst in Portugal earns varying salaries based on their years of experience, industry, and location, as illustrated by Glassdoor.

A thorough understanding of salary trends in Portugal requires analysis of various sources, such as Pordata, Eurostat, and industry-specific data. With this information, professionals can make informed decisions as they navigate the Portuguese job market.

Future Salary Trends in Portugal

Portugal is looking towards a future of increasing salaries and an evolving labor market. With a current average monthly salary of around 2750 EUR (2676.42 USD), the Portugues labor market has been experiencing various trends that can shed some light on future salary growth.

As we move into 2023, one significant future trend is the salary increase. Portugal’s salaries are anticipated to rise by an average of 2.8% in the coming year. This predictable increase is welcomed news for employees seeking better compensation, although it is noteworthy that this rate of increase falls below the expected inflation rate.

The overall labor market in Portugal is also experiencing shifts, with various sectors strategically adjusting to these changes. Many industries are adopting technological advancements, leading to increased efficiency and productivity. In turn, this could result in higher wages for the specialized workforce. However, it’s important to be aware that these increases might not benefit employees in sectors that haven’t seen such significant technological advancements.

Estimates for the future salary trends point towards a gradual closing of the gap between Portugal’s average salary and the average salary in the European Union. As of 2023, the average salary in Portugal is €27,167, as compared to the EU’s average salary of €36,992. As the country continues to strengthen its economic growth, it is likely that the average salaries will continue rising. This growth is expected to benefit not just highly skilled workers but also the masses.

In conclusion, future salary trends in Portugal indicate a positive outlook, with expected increases in the average wage, a dynamic labor market, and the closing gap between the country’s average salary and the EU’s average. These trends, if appropriately sustained and supported, can contribute to the overall economic development and improved quality of life for those living and working in this beautiful country.

Frequently Asked Questions

Software developers in Portugal generally earn an average salary depending on experience level and location. Companies in Lisbon, for example, tend to offer higher compensation than other regions. It is important to research and compare salaries for specific tech positions across various platforms.

Waiters in Portugal may earn a base salary plus tips, with their earnings largely dependent on the restaurant location, clientele, and their level of experience. In general, salaries for waiters may be slightly lower than the country's average earnings. In the tourism and hospitality industry, better-earning opportunities might exist in popular tourist locations.

Rent costs in Portugal can vary significantly depending on the city and type of housing. The average rent for a one-bedroom city-center apartment ranges, while the same apartment outside the city center may be more affordable. Lisbon and Porto tend to have higher rent prices compared to other cities as they are more densely populated. It is wise to research and compare accommodation costs before making a decision.

A good wage in Portugal is subjective and depends on factors such as the individual's lifestyle, location, and personal preferences. While the average salary in Portugal is €1,100 per month, a higher percentage is earned by those with a university degree, with average salaries for degree holders jumping to €1,547. Therefore, a "good wage" will depend on the person's needs and financial goals.

A livable salary in Portugal will depend on individual lifestyle choices and location. The minimum wage in the country is around €740 per month, but it can be challenging to live comfortably on this amount alone, especially in cities with higher living costs. Factors such as housing, utilities, transportation, and groceries are vital to consider when calculating a livable salary.

The top 1% of earners in Portugal likely to earn incomes significantly higher than the average salary. Exact figures are not readily available, but individuals in this bracket often occupy high-paying roles in specialized sectors such as finance, technology, and upper management.

Travis is a global business development advisor. He has spent the last 14 years supporting business establishment and development in North America, Southeast Asia, and throughout the world. With multiple degrees from the University of Oregon, Travis currently splits his time between the US, and Bali, Indonesia. At RemotePad, Travis writes about remote work, hiring internationally and PEO/EOR business models.