How much is the minimum wage in Portugal in 2026
The national minimum wage (SMN) for mainland Portugal is €920 gross per month in 2026, compared with €870 in 2025. The increase of €50 is equivalent to a rise of 5.7%.
In Portugal, wages are paid in 14 instalments: the twelve monthly payments plus the Christmas bonus and the holiday bonus. The annual minimum is €12,880 gross.
Madeira and the Azores apply slightly higher regional rates, set by their own governments. For a company in Lisbon or Porto, the floor is that of the mainland: €920.
What an employee on the minimum wage costs your company
The gross figure is not what you pay. Portuguese Social Security is added on top of the minimum wage: 23.75% borne by the company and 11% by the worker, a total of 34.75%.
With €920 gross, the company contributes around €218 in Social Security each month. The real cost per employee is around €1,140 per month, before work accident insurance, which is mandatory in Portugal.
Who the minimum wage applies to
The SMN applies to any employed worker on a full-time basis, including foreigners with a contract in Portugal. If the contract is part-time, the minimum is calculated in proportion to the hours worked.
Professional internships have their own regime and are usually below the SMN. If you are going to take on interns, check the collective agreement before setting the pay.
What the worker takes home net
The worker does not receive the full €920: 11% is deducted for Social Security. The personal income tax withholding at this level is very low or zero, because the minimum wage is close to the exemption threshold.
For the company, the expense is deductible for corporate tax: wages and contributions reduce the taxable base, which is taxed at 21%.
Minimum wage and collective agreement
In addition to the SMN, each sector may have a collective agreement (CCT) that sets minimums above €920. Check whether your activity has an applicable agreement, because that will be your real payroll floor.
Collective agreements also regulate extras such as meal allowance or shift supplements, which increase the effective labour cost even if the gross pay does not change.
