Average Salary in Portugal
The preferred hub of digital nomads, Portugal, had an average salary of €22,006 (USD 23,101.90) per year in 2024, according to the OECD. The monthly equivalent is an average gross salary of €1,833 (USD 1,924.28) per month.
However, like in most countries, the average salary in Portugal varies widely depending on factors like the overall Portuguese economy, someone’s occupation, education, and even geographic location. Let’s uncover all these factors in this article.
Please note:
- All data in this article are based on official statistics and reports, such as those from the Instituto Nacional de Estatística (INE) and World Bank reports.
- Portugal’s official currency is the Euro (€).
- All figures in the article are gross salaries.
- One Euro equals 1.05 USD when writing this article. Please double-check the exchange rate at the time of reading.
Key statistics and macros
- Average annual salary: €22,006 (USD 23,101.90). Source: OECD
- Average monthly salary: €1,833 (USD 1,924.28). Source: OECD
- Minimum wage: €820.00 (USD 860.84). Source: Wageindicator.org
- Gender pay gap: 13.1%. Source: World Economic Forum
Average salary in Portugal
According to the OECD, the average salary in Portugal stands at €1,833 (USD 1,924.28) per month and at €22,006 (USD 23,101.90) per year.
According to the Portuguese government, Portuguese workers had an average salary real increase of 2.3% above inflation. These monthly and annual earnings of Portuguese citizens are below the OECD average of USD 49,165, according to the OECD Better Life Index. Portugal is known for its lower costs among countries in the European Union, and the average earnings reveal data about economic health and labor market conditions.
However, it’s important to add context about economic growth, purchasing power, and other elements when analyzing competitive salaries.
Minimum wage
The national minimum wage in Portugal as of January 1, 2024, is €820.00. In Portugal, the government mandates the monthly minimum wage, which applies to everyone in the working field. Hence, the minimum hourly wage is €5,12 per hour.
Portugal’s minimum salary is ranked in the 12th position in the EU, according to Eurostat. A Euronews article stipulates that the minimum wage is set to rise to €870 a month in 2025. Also, the government proposed raising it to a national average of €1,020 in 2028 with incremental raises of €50 a year until 2028.
Nonetheless, you need to know that this minimum wage applies differently in 3 regions of Portugal in 2024:
Per month | Minimum Wage per Year | |
| National (Continent) | €820.00 | €11,480.00 |
| Autonomous Region of Azores | €861.00 | €12,054.00 |
| Autonomous Region of Madeira | €850.00 | €11,900.00 |
Average salary by region
According to the latest data available from INE, in 2022, the average salary in Portugal by its main regions, Portugal mainland (Continente), Azores, and Madeira, had slight variations.
The mainland (Continente) tops the list with the highest average at €1,368, slightly above the national average of €1,362.37. It should be noted that the mainland region includes major economic centers like Lisbon and Porto.
| Geographic localization | Average monthly earnings (€) |
| Portugal | 1 362,37 |
| Continente | 1 368,00 |
| Região Autónoma dos Açores | 1 191,11 |
| Região Autónoma da Madeira | 1 244,07 |
Interestingly, the autonomous regions have lower average salaries, with Madeira at €1,244.07 and the Azores at €1,191.11. This disparity is a reflection of the economic challenges faced by the island territories in Portugal. One of the main causes of these regional differences is geographic isolation and their higher dependence on tourism.
Concluding, it’s worth noting that these figures from 2022 should be placed in context, specifically Portugal’s economic recovery post-pandemic and its broader efforts to reduce regional inequalities.
Average salary by job
When assessing salary levels based on profession, we notice that skilled workers like surgeons are at the top of the scale with €150,000 a year. However, pharmaceutical technicians earn €1,625 a year in the healthcare sector.
Through these salaries, we notice a clear difference between skilled labor and support roles. This premium on skilled labor is also visible in technical fields, such as development engineers, which earn €36,250 a year.
Some roles that require a lot of human resources development, like customer service representatives, have salaries of €50,000. Also, professional chefs earn €42,500, while others, like civil engineers, earn €15,600 a year.
Marketing and sales professionals earn between €20,000-30,000. Others in the service industry with less training, like cashiers (€12,870) and bartenders (€15,000), earn less.
| Job Profile | Annual Average Income (€) |
|---|---|
| Surgeon | 150,000 |
| Caregiver | 21,600 |
| Veterinarian | 22,200 |
| Dentist | 20,000 |
| Pharmaceutical technician | 1,625 |
| Cooks and Chefs | 42,500 |
| Sous Chef | 26,500 |
| Restaurant Manager | 18,000 |
| Bartender | 15,000 |
| Customer Service Representative | 50,000 |
| Massage Therapist | 19,800 |
| Appraiser | 14,879 |
| Cashier | 12,870 |
| Development Engineer | 36,250 |
| Chemical Engineer | 26,500 |
| Software Engineer | 22,500 |
| Mechanical Engineer | 16,800 |
| Civil Engineer | 15,600 |
| Sales Engineer | 30,000 |
| Brand Ambassador | 24,000 |
| Digital Marketing | 20,085 |
| Marketing Manager | 20,438 |
| Sales Manager | 20,085 |
Average salary by industry
As proved above, the healthcare industry has the highest average wage of €49,300. Sales and marketing professionals earn an average of €37,200. It’s interesting to assess marketing and sales through the lens of commercial skills and their necessity in the Portuguese labor market.
Tourism and hospitality are in third place, with average salaries of €35,551, which is notable particularly because of Portugal’s tourism industry. Technology and education have similar averages at €34,000 and €34,600, respectively, despite technology typically being considered a high-paying field globally.
Note that specific roles within each sector vary significantly based on someone’s experience and specialization, and these averages are calculated based on the highest and lowest salary points.
| Industry | Average Annual Salary |
|---|---|
| Technology | €34,000 |
| Tourism and Hospitality | €35,551 |
| Healthcare | €49,300 |
| Education | €34,600 |
| Sales and marketing | €37,200 |
Source: Talent.com
Average salary by education
Data from INE from 2022 shows that in Portugal, there is a clear correlation between educational degrees and earning potential, as a higher degree comes with a higher salary. The doctoral level comes with average earnings of €2,886, more than three times the wages of those with only primary education (€976). A Master’s degree brings around €2,199, while bachelor’s degree holders average €2,031 monthly.
INE made available data from 2021 that shows more granularly how education impacts the average salary but also how, in some municipalities, salaries are considerably higher. For instance, in 2021, Vila do Porto had remarkably high wages of €5,020 for tertiary-educated employees, while municipalities from rural areas like Sines, Castro Verde, Oeiras, and Amadora all reported wages above €2,000 for the same education level.
Concluding, the results of education are particularly visible in major cities like Lisbon and Porto.
| Region | Lower than 1st cycle of primary education | 1st cycle of primary education | 2nd cycle of primary education | Lower secondary education | Upper secondary education | Short-cycle professional course | (Pre-Bologna) short-cycle tertiary course | Bachelor´s level | Master´s level | Doctoral level |
| Portugal | 896,53 | 976,81 | 1,032 | 1,066 | 1,214 | 1 291 | 2 067 | 2 031 | 2 199 | 2 886 |
| Continente | 892,87 | 974,42 | 1,029 | 1,068 | 1,217 | 1 292 | 2 068 | 2 035 | 2 197 | 2 895 |
| Região Autónoma dos Açores | 887,85 | 985,35 | 1,105 | 1,000 | 1,122 | 1 278 | 2 192 | 1 899 | 2 131 | 2 183 |
| Região Autónoma da Madeira | 992,72 | 1 043 | 1,069 | 1,063 | 1,143 | 1 309 | 1 947 | 1 903 | 2 428 | 2 264 |
Gender wage gap
Portugal’s gender pay gap is 13.1%, slightly above the EU average of 12.7%.
To address this, Portugal has implemented regulations requiring employers with over 50 employees to carry out annual pay data analysis, and if there are any unjustified gender gaps, they need to address them in 180 days. This law was put into effect in 2018.
What’s particularly noteworthy is that employers have to go beyond simple reporting. They must implement transparent pay policies and develop clear remediation strategies for unexplained gender wage differences.
According to Trusaic, by 2026, these requirements will expand to include more detailed reporting and broader worker coverage under the EU Pay Transparency Directive. This regulation will be implemented for all companies with 250+ employees, and by 2031, extending to those with 100 or more employees.
Interesting labor market facts about Portugal
- Unemployment rate: Portugal faces high unemployment rates, particularly in the Northern region, where the rate persisted at a striking value of 43.5% of unemployed individuals in the long term. In 2023, in the North, the unemployment rate was 6%, and the overall rate in the country was 7.2%, according to Eures.
- Chronic labor shortage: Portugal faces a chronic labor shortage, which is largely counterbalanced by foreign workers. However, low wages and limited work-life balance push away many local workers.
- High number of temporary workers: Portugal has one of the highest rates of temporary employment in the European Union, which is approximately 20% of the total workforce. This phenomenon happens particularly due to seasonal demands in tourism where foreign workers travel to regions like the Algarve and Lisbon. Foreign workers in Portugal participate in commercial activities as well as agriculture and construction. Source: Eurostat
- Sectors demand: Portugal has a high demand in tourism and hospitality, IT (software development, cybersecurity), healthcare (doctors, nurses), and construction.
- Strong presence of trade unions: Trade unions are especially active in Portugal, particularly in public sectors like healthcare and education. They negotiate collective agreements and advocate for fair wages, better working conditions, and protection against unjust dismissals.
- Growing demand for private health insurance: Many employees in Portugal are turning to private health insurance as a complement to the national healthcare system, and in fact, companies are increasingly offering private insurance as a perk to attract and retain talent.
- Financial assistance for workers: Government programs offer financial assistance to low-income and unemployed individuals. That includes housing subsidies, job-seeking support, and vocational training to offer more job security and an overall quality of higher living standards.
Comparison with other countries
When comparing Portugal with other European countries like Germany, Poland, Romania, the UK, or Spain, Portugal’s wages are comparable to Spain’s, which is €26,948 yearly. However, these are significantly lower than in countries from Northern or Central Europe like Sweden, which is €46,329, and Germany, €50,250. In comparison with other EU countries like Poland or Romania, Portugal has a slightly higher salary.
Portugal follows the Western European model of regulated minimum wages, around €760 monthly, which contrasts with Sweden’s collective bargaining model. However, Portugal’s minimum wage is lower than Germany’s of €12.41 hourly but higher than Poland’s minimum salary of €1,060 monthly.
Concluding, Portugal can be seen as bridging the gap between Western and Eastern European labor markets, though closer to Western European standards in its worker protections and regulations.
FAQ
What is a good salary in Portugal?
A good salary in Portugal depends on your location and the lifestyle of your choice. Nonetheless, a good salary should be more than the average of €1,833 (USD 1,924.28) per month. A salary above €2,000 is considered good in rural areas, as for cities like Lisbon or Porto, €2,500–€3,000 should be a good salary.
Can you live in Portugal on $2000 a month?
Yes, you can live in Portugal for $2,000 a month, especially outside major cities like Lisbon or Porto. In smaller towns or rural areas, this budget would cover rent, food, utilities, and leisure comfortably. In larger cities, you might need to carefully budget with $2,000 in your pocket.
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