Minimum wage vs average wage
The national minimum wage (SMN) is €920 gross per month over 14 payments. The average gross salary is around €1,600 per month, although the figure varies widely by sector and region.
The difference between minimum and average matters: if you budget on the minimum, you will fall short for qualified profiles. If you use the average for an entry-level role, you will overpay.
Differences by sector
Technology, finance and consulting pay well above average, with salaries in Lisbon that can exceed €2,000-3,000 for senior profiles. Hospitality, retail and services sit close to the minimum wage.
Portugal is known for its tech ecosystem: Lisbon and Porto concentrate demand for developers, product and design, and there salaries have risen faster than in the rest of the country.
Lisbon and Porto vs the interior
The coast and the two big cities pay more than the interior. The same role can vary by 20-30% between Lisbon and a northern city such as Braga or an inland one such as Évora.
If you can hire remotely within Portugal, location is an important cost lever. A technical profile working remotely from the interior costs less than the same profile in Lisbon, while keeping the same talent.
Real cost for your company
Salary is not the total cost. On top of gross pay, the company pays 23.75% in Social Security in Portugal, so a salary of €1,600 gross costs around €1,980 per month, before the mandatory workplace accident insurance.
And don't forget the 14 payments: the annual cost is calculated over fourteen monthly payments, not twelve. That Christmas and holiday extra is prorated or paid separately, but it always counts.
Using the data to plan your LDA
The average salary is useful for budgeting, not for setting payroll: each contract is negotiated within its own band. With the average for your sector and the city where you operate, you can calculate a realistic staffing cost for your business plan.
Complete the calculation with employer contributions and mandatory insurance, and you will have the real employment cost per position before making the first offer.
