Find out how much the gross minimum wage is in Portugal, how the net minimum wage is calculated, the bonuses and premiums that can be received in addition, the income tax rate and how overtime works.
How much is the minimum wage in Portugal?
The minimum wage in Portugal in 2022 is 822.5 euros gross for 40 hours worked per week and paid over 14 months.
The minimum wage was 775.83 euros in 2021. The government has stated that the minimum wage in Portugal will be raised to 875 euros gross per month from 2023.
Bonuses to add to the minimum wage
In Portugal, you can accumulate overtime:
– in a small company: 175 hours of overtime per year
– in a large company: 150 hours per year.
These overtime hours are paid at least 25% more than the basic hourly rate and up to 50% on public holidays.
An employee who has been employed for more than one year is entitled to 22 days of vacation.
In addition to the basic salary or the minimum wage, it is possible to receive bonuses for performance, attendance, food (4.8€ per meal) and transportation.
In the end, the SMIC can reach 950 euros per month over 12 months.
How much is the net minimum wage in Portugal?
The net salary in Portugal is calculated according to 3 criteria
- the gross salary
- the marital status
Não Casado (single, declaring alone)
Casado unico titular (joint declaration with only one worker in the household)
Casado dois titular (joint declaration with two workers in the household) - the number of dependents.
The net minimum wage in Portugal for a single person without children is €645.
From the gross minimum wage, 11% of social security and 10.5 of taxes must be deducted.
The net Smic for a married person with two children is €722.
💡 Please note: social contributions in Portugal finance disability, old age, work accidents and occupational diseases insurance, as well as part of the sickness-maternity and unemployment insurance.
👉 Find our complete guide to working in Portugal
How many employees receive the minimum wage in Portugal?
The number of minimum wage earners in Portugal is increasing. It concerns 880,000 workers, i.e. about 20% of the active population.
The average wage in Portugal is €842, after tax in 2021. In 2020, it was €853. It has therefore decreased by 1.27% over one year.
Inflation in Portugal was 5.33% in March 2022.
The Smic in Europe
The Smic refers to the minimum interprofessional growth wage. In Portugal, it is called the “salário mínimo”.
This acronym refers to the minimum wage in force in a country. It sets an amount of income in a legal way below which an employee cannot be paid, regardless of the branch of activity.
The minimum wage is a major societal progress. It fulfills a fundamental social function because it strengthens social cohesion and reduces poverty. It also encourages companies to innovate in order to improve their productive efficiency.
The minimum wage, although it does not yet apply to all European countries, is included in the sixth principle of the European Socle of Social Rights, which states that employees have the right to “a fair wage that ensures a decent standard of living” and to an “adequate minimum wage (…) so as to enable them to meet their needs”.
Of the 27 member countries of the European Union, six do not have a legal minimum wage in 2022: Austria, Cyprus, Denmark, Finland, Italy and Sweden.
Portugal is one of the Eurozone countries with one of the lowest minimum wages.
How much is the minimum wage in France?
The 2022 gross monthly minimum wage in France is 1,603.12 euros since January 1st.
For comparison, it is €1125.83 in Spain.
The income tax rate in Portugal
The income tax rate in Portugal in 2021 is as follows
| Tranche de revenus | Taux d’imposition |
| de 0 à 7 112 € | 14,50% |
| entre 7 112 € et 10 732 € | 23% |
| entre 10 732 € et 20 322 € | 28,50% |
| entre 20 322 € et 25 075 € | 35% |
| entre 25 075 € et 36 967 € | 37% |
| entre 36 967 € et 80 882 € | 45% |
| au-dessus de 80 882 € | 48% |
👉 All about taxation in Portugal
Evolution of the minimum wage in Portugal since 1999
| Année | Montant brut |
| 2022 | 822,5 |
| 2021 | 775,8 |
| 2020 | 740,8 |
| 2019 | 700 |
| 2018 | 676,7 |
| 2017 | 649,8 |
| 2016 | 618,3 |
| 2015 | 589,2 |
| 2014 | 565,8 |
| 2013 | 565,8 |
| 2012 | 565,8 |
| 2011 | 565,8 |
| 2010 | 554,2 |
| 2009 | 525 |
| 2008 | 497 |
| 2007 | 470,2 |
| 2006 | 450 |
| 2005 | 437,2 |
| 2004 | 426 |
| 2003 | 416 |
| 2002 | 406 |
| 2001 | 389,9 |
| 2000 | 371,3 |
| 1999 | 356,7 |
Source: Eurostats
