Wage Growth Over the Last Decade
Workers in Madeira earning the regional minimum wage in 2025 have already seen a significant rise in their earnings over the past decade. Since 2015, the minimum wage has increased by €400, going from 515 euros to €915 - a growth of 77.7%. This steady rise has been driven by the policy of ensuring that annual increases at least match the previous year’s inflation rate.
Political Commitments and New Targets
During the recent regional elections, the minimum wage was a major topic for nearly all political parties. However, the winning party, PSD, was the only one to set a concrete target of €1200. With support from CDS, the new government will have four years, until 2029, to adjust the regional minimum wage. Traditionally, Madeira’s minimum wage has been slightly higher than the national level. For example, in 2025, the national minimum wage stands at €870, while in Madeira, it is €915.
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PSD’s Pledge for a €1,200 Minimum Wage, It Could Take 4 Years!
During the election campaign, PSD displayed posters pledging to set the regional minimum wage at €1,200 . Although the exact timeline was not specified, it is expected that this goal will be pursued within the current legislative period (2025-2029).
A few days before the election, PSD reaffirmed its promise on social media, stating, "We reiterate our strong commitment to the future: ensuring that the Regional Minimum Wage, already the highest in the country, reaches €1,200, alongside adjustments in other wage categories, as outlined in our previously rejected budget."
Evolution of Madeira’s Minimum Wage Since 2015
Year | Minimum Salary | Annual Increase | Increase in % |
2015 | €515 | - | - |
2016 | €540 | + €35 | 4.85% |
2017 | €570 | + €30 | 5.55% |
2018 | €592 | + €22 | 3.85% |
2019 | €615 | + €23 | 3.88% |
2020 | €650 | + €35 | 5.69% |
2021 | €682 | + €32 | 4.92% |
2022 | €723 | + €41 | 6.01% |
2023 | €785 | + €62 | 8.57% |
2024 | €850 | + €65 | 8.28% |
2025 | €915 | + €65 | 7.65% |
Historical Context and Projected Growth
This is not the first time PSD has set ambitious targets. In May 2024, they committed to raising the minimum wage to €1,150 by 2028. However, with the government’s early dissolution in December 2024, that plan was disrupted. Now, PSD has increased its proposed target by €50, aiming for a total increase of €285 between 2026 and 2029. This would mean at least an average annual rise of approximately €71.25 - the highest yearly increase in the region’s history.
For PSD to fulfill this promise, the wage would need to grow at an average annual rate of about 7%. This would lead to a notable improvement in earnings for those on minimum wage, likely surpassing inflation. It however does not mean that all Madeirans will have a higher purchasing power, as fast-paced rent increases and other costs could quickly diminish the impact, making the increase largely superficial.
Source: Diário de Notícias da Madeira
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