Minimum wage in Europe: a range of more than €1,300
Each country sets its minimum wage according to its own criteria, and the differences are large. The minimum wage in Europe ranges from €870-920 in Portugal to €12.82 per hour in Germany, which at full time amounts to around €2,200 per month.
Spain, with a minimum wage of €1,184 in 14 payments (about €1,381 if prorated over 12), is in the middle range. France is close to €1,800, while Italy has no legal minimum wage: it is set by collective agreements.
This dispersion is why it is advisable to look at the specific figure for the country where you will operate, not a European average that tells you little about your case.
Comparison of minimum wages by country (gross monthly)
These are the approximate amounts in force in 2025-2026 for a full-time job. We give them as ranges because some countries update the minimum wage mid-year and others negotiate it sector by sector.
Key points
- Portugal: €870-920 (progressive increase to €920 planned for 2026)
- Spain: €1,184 in 14 payments (≈€1,381 in 12 payments)
- Italy: no legal minimum; collective agreements usually set between €1,200 and €1,500
- Andorra: around €1,400
- France: minimum wage of about €1,800
- Germany: €12.82/hour, about €2,200 per month full time
Minimum wage and the real cost of hiring
Gross salary is only the base. When hiring, the company also pays social security contributions that increase the cost by between 20% and 40% depending on the country.
In Portugal, Social Security represents a total of 34.75% (23.75% paid by the company and 11% by the worker). In Germany the employer's share is around 21%, in Spain it is close to 30% and in France it can exceed 40%, although there are reductions for salaries close to the minimum wage.
An employee on the German minimum wage can cost the company more than €2,600 per month once contributions are added, compared with around €1,100 for a Portuguese employee. The cost difference between countries is just as relevant as the salary itself.
What the minimum wage means depending on the country where you open a company
If you plan to hire from day one, countries such as Portugal or Italy let you start with lower employment costs, while France and Germany require a larger staffing budget from the outset.
The legal form also matters: an LDA Unipessoal in Portugal or an SRL in Italy are quick and cheap to set up, while a German GmbH requires €25,000 in share capital. That is a cost on top of the first employee.
Before deciding, review the guide for each country: opening a company in Portugal, France, Germany or Italy, and consider the process of hiring employees in Europe so you do not underestimate the timelines.
Countries without a legal minimum wage
Not all of Europe regulates the minimum wage by law. Italy, the Nordic countries and Austria leave it to collective bargaining, which gives flexibility but also uncertainty if you do not know your sector's collective agreement.
Outside the EU, Dubai also has no general minimum wage: the market and the type of visa determine salaries. If you are considering a Free Zone or a Mainland company, the employment cost will depend more on the profile you are looking for than on a state rule.
In these cases, local advice is almost essential to set competitive salaries and comply with the applicable collective agreement.
The minimum wage should not be your only criterion
A low minimum wage does not always mean cheap hiring: you have to add contributions, taxes such as the 21% IRC in Portugal or the 25% IS in France, and incorporation procedures that can take 2 to 14 weeks depending on the country.
The sensible approach is to combine employment cost, taxation and market access. If your goal is to internationalise your SME, compare the whole picture before deciding where to open a company in Europe.
Choosing a country is the first decision, and the minimum wage is only part of the cost: on top come employer contributions, extra payments and the sector agreements of each market. Comparing gross figures without those layers leads to budgets that fall apart with the first payslip.
