Average salary in Portugal (2026)

The average gross monthly salary in Portugal reached €1,741 in the second quarter of 2025, according to the Instituto Nacional de Estatística (INE). Regular monthly earnings, excluding the holiday and Christmas subsidies, stood at €1,368. Both figures represent a 6% year-on-year increase.

For employers hiring in Portugal, these headline numbers are only part of the picture. Portuguese salaries are paid 14 times per year (12 monthly payments plus the 13th and 14th month subsidies). Employer social security adds 23.75% on top of gross pay. A meal allowance is standard. Workplace accident insurance is mandatory. The gap between the salary on the contract and the total cost of employment is wider in Portugal than in many other European markets.

This guide covers average salaries across sectors, roles, and regions, plus what employers need to know about the full cost of hiring in Portugal. If you are planning to hire, see our guide to hiring employees in Portugal. If you are comparing Employer of Record providers, see our guide to the best EOR providers in Portugal.

The Portuguese national minimum wage for 2026 is €920 per month (gross), effective from 1 January 2026. This is paid 14 times per year, making the annual minimum salary €12,880 gross.

The increase from €870 in 2025 to €920 in 2026 was confirmed by government decree in December 2025. It follows a trajectory agreed in the October 2024 income agreement between the government, the UGT trade union confederation, and employer associations, which targets a minimum wage of €970 in 2027 and €1,020 in 2028.

For employers, the minimum wage sets the floor for all full-time employment contracts. Part-time workers receive a proportional amount based on their hours. From 2026, the €920 minimum wage is exempt from IRS withholding for workers at this salary level, which affects the net pay calculation but not the employer’s cost.

Salary levels in Portugal vary widely depending on the sector. The following figures are based on INE data from 2025 (the most recent full dataset available as of April 2026) and represent gross monthly total earnings including regular and irregular components.

INE publishes salary data by occupational classification, which gives a clearer picture of what different role levels command.

Source: INE data published February 2026 (2025 figures, net monthly salary).

The gap between management roles (€2,054 net) and unskilled workers (€790 net) is roughly 260%. This is a wider spread than in many Northern European countries and reflects the wide variation in earning power across the Portuguese labour market.

For technology roles specifically, salaries in Lisbon and Porto have risen sharply in recent years, driven by the growth of Portugal’s tech ecosystem. Senior software engineers, product managers, and data specialists in Lisbon can command gross salaries of €3,000 to €5,000+ per month, well above the national average.

Lisbon and the surrounding metropolitan area command the highest average salaries in Portugal. INE data shows average gross monthly earnings in Lisbon at approximately €2,215, compared with the national average of €1,741.

Porto follows as the second-highest-paying region, with salaries broadly in line with or slightly above the national average. Coimbra and Braga also report competitive salaries, particularly for professional and technical roles.

Regions in the interior, the Alentejo, and the Algarve (outside of the tourism peak season) tend to report lower average earnings, often closer to the minimum wage in sectors like agriculture, hospitality, and retail.

For employers hiring remotely, this regional variation matters. A salary that is competitive in Lisbon may be well above market rates in a smaller city, and vice versa. When structuring offers through an Employer of Record, ask your provider about local market benchmarks for the specific location and role you are hiring for.

The salary figure on the contract is not what the employee costs you. Portuguese employer costs add a meaningful layer on top of gross pay. For a full breakdown of Portuguese payroll mechanics, see our guide to how payroll works in Portugal.

Employer social security. 23.75% of gross salary, paid monthly to Segurança Social.

13th and 14th month payments. Two additional months of salary per year. Annual salary commitment is 14 months, not 12.

Meal allowance. Typically €6.15 per working day (2026 public sector benchmark), usually paid via meal card for tax efficiency.

Workplace accident insurance. Mandatory. Rates vary by industry.

As a rule of thumb, total employer cost in Portugal runs 35% to 45% above the gross monthly salary, depending on the benefits package. For a gross monthly salary of €2,000, the total annual employer cost (including the 13th and 14th months, social security on all 14 payments, meal allowance, and insurance) will be well above €36,000.

Do not rely on estimates. Use the Boundless cost calculator to model exact employer costs at any salary level before making an offer.

Portuguese wages have been on an upward trajectory since 2020. The average gross monthly salary rose from approximately €1,314 in 2020 to €1,602 in 2024 and €1,741 in Q2 2025, representing cumulative growth of over 30% in five years.

Several factors are driving this trend. The minimum wage has increased every year since 2015, when it stood at €505. GDP growth has been positive, with Portugal recording 1.9% growth in 2025 and achieving its first budget surplus in decades. The technology sector has expanded, bringing higher-paying roles to Lisbon and Porto. Foreign investment and the growth of Portugal as a destination for international companies have increased demand for skilled professionals.

The Trabalho XXI labour reform, still under negotiation as of April 2026, includes provisions that could affect salary dynamics, including changes to fixed-term contract rules and overtime limits. The reform has not been enacted, but employers should monitor its progress. For more on how the reform affects employment arrangements in Portugal, see our complete guide to Employer of Record in Portugal.

Looking ahead, the government’s minimum wage roadmap targets €970 in 2027 and €1,020 in 2028. Average salaries are expected to continue rising, though the pace will depend on broader economic conditions and the outcome of ongoing labour market reforms.