Portugal Announces Wage Increases Through 2028
The Portuguese government has recently confirmed plans to raise the national minimum wage, which is currently set to €820 per month and thus lower than in Madeira. Yet even with the expected increases, the country's minimum wage will remain lower than many other European Union nations. Labor Minister Ana Mendes Godinho stated this week that a wage hike is "absolutely certain," with the minimum wage set to reach €870 per month starting in 2025.
Portugal Places 12th in European Ranking
Latest minimum wages in Europe adjusted and expressed in purchasing power standards from July 2024. Portugal places 12th in European ranking (13th including the USA). Interesting to note: the ranking includes the United States of America which adjusted for purchasing power, has a minimum wage that is barely two hundred Euros higher than in Portugal.
Rank | Country | Minimum Wage per month |
1 | Luxembourg 🇱🇺 | €2,570 |
2 | Ireland 🇮🇪 | €2,146 |
3 | Netherlands 🇳🇱 | €2,134 |
4 | Belgium 🇧🇪 | €2,070 |
5 | Germany 🇩🇪 | €2,054 |
6 | France 🇫🇷 | €1,766 |
7 | Spain 🇪🇸 | €1,323 |
8 | Slovenia 🇸🇮 | €1,253 |
9 | United States 🇺🇸 | €1,173 |
10 | Cyprus 🇨🇾 | €1,000 |
11 | Poland 🇵🇱 | €997 |
12 | Greece 🇬🇷 | €968 |
13 | Portugal 🇵🇹 | €956 |
14 | Lithuania 🇱🇹 | €924 |
15 | Croatia ðŸ‡ðŸ‡· | €840 |
16 | Estonia 🇪🇪 | €820 |
17 | Czechia 🇨🇿 | €755 |
18 | Slovakia 🇸🇰 | €750 |
19 | Romania 🇷🇴 | €743 |
20 | Latvia 🇱🇻 | €700 |
21 | Hungary ðŸ‡ðŸ‡º | €675 |
22 | Türkiye 🇹🇷 | €568 |
23 | Serbia 🇷🇸 | €544 |
24 | Montenegro 🇲🇪 | €532 |
25 | Bulgaria 🇧🇬 | €477 |
26 | Albania 🇦🇱 | €398 |
27 | Moldova 🇲🇩 | €260 |
Current Minimum Wage and Future Increases
Currently, the minimum wage in Portugal stands at €820 per month. The government has outlined a plan to raise this amount by €50 annually until 2028, when the minimum wage will reach €1,020 per month. While these efforts aim to improve workers' quality of life, Portugal’s minimum wage will still fall behind several EU countries offering substantially higher salaries.
What Constitutes a "Good Salary" in Europe?
The question of what qualifies as a "good salary" in Europe varies widely depending on factors like the cost of living, location, and job sector. For instance, in Germany, a good annual salary is considered between €64,000 and €70,000, equating to a monthly net income of around €3,300 to €3,600 for a single person.
In France, a comfortable lifestyle would require a net monthly income of approximately €3,200, while in Spain, that figure is around €2,700.
Portugal Faces Challenge in Closing Wage Gap
The planned increase in Portugal’s minimum wage is a positive step for workers, but when compared to other EU nations, a significant wage disparity remains. Even if the minimum wage reaches €1,020 in 2028 and will likely be higher in Madeira by then, Portugal will still lag behind many Western European countries. The government’s challenge lies in closing this gap while continuing to improve living standards for its citizens.
Sources:
Eurostat
Sapo
Observador
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