[Portugal] Minimum wage target of €1,020 by 2028

Portugal’s minimum wage remains one of the lowest in Europe, however, the government is working towards changing that. On September 25, it agreed with unions and employers to raise the current €820 a month by €50 to €870 from 2025, Portugal Resident reports.

Unions have acknowledged that the move is a start but minimum wage workers have told the country’s media that no one can actually survive on €820 - or even €870 - for a full four weeks. 

The close to 21 per cent (approximately 838,000) of Portugal’s workers earning the minimum wage reportedly underpin their finances with the earnings of partners and family members or the help of wider family.

The government plans to increase the national minimum wage to €1,020 by 2028, in increments of €50 each year.

Labour minister Maria Rosário Ramalho reportedly said that the increase for 2025 is “significant” and part of a “wage enhancement agreement” which not only focuses on the minimum wage but proposes measures for the enhancement of wages in general and is geared towards economic growth and competitiveness.

Employers are said to have shown willingness yet remain clear that they need “compensatory measures” too such as reductions in IRC (business taxes) which were part of the AD electoral pledges but which now face a battle with opposition parties before they can be included in the State Budget.

Source: Portugal Resident

Portugal’s minimum wage remains one of the lowest in Europe, however, the government is working towards changing that. On September 25, it agreed with unions and employers to raise the current €820 a month by €50 to €870 from 2025, Portugal Resident reports.

Unions have acknowledged that the move is a start but minimum wage workers have told the country’s media that no one can actually survive on €820 - or even €870 - for a full four weeks. 

The close to 21 per cent (approximately 838,000) of Portugal’s workers earning the minimum wage reportedly underpin their finances with the earnings of partners and family members or the help of wider family.

The government plans to increase the national minimum wage to €1,020 by 2028, in increments of €50 each year.

Labour minister Maria Rosário Ramalho reportedly said that the increase for 2025 is “significant” and part of a “wage enhancement agreement” which not only focuses on the minimum wage but proposes measures for the enhancement of wages in general and is geared towards economic growth and competitiveness.

Employers are said to have shown willingness yet remain clear that they need “compensatory measures” too such as reductions in IRC (business taxes) which were part of the AD electoral pledges but which now face a battle with opposition parties before they can be included in the State Budget.

Source: Portugal Resident