Unlike average and medium salaries that evolve according to the economy and success of companies, minimum wages are defined by the State and aim to ensure a minimum of dignity to their beneficiaries, as there is a large disparity in negotiating power between these less qualified workers and their employers, which leads to the need for central imposition of this minimum value.
But how do you compare minimum wages with media in Portugal? By 2023, the national minimum wage of 760 € monthly accounted for 68% of the gross median salary (€ 1,114).
Portugal is the country of the eurozone where the minimum wage was closer to the median salary. In most countries in the eurozone the minimum wage corresponds to about half of the median salary. Slovenia (63%) and France (62%) are also above 60%. In Croatia, Estonia and Latvia this proportion does not exceed 45%.
Although Portugal has a high minimum wage compared to the median salary, it is important to stress that the minimum wage is, in absolute value, far short of most countries that use the euro. In fact, it is even the lowest in Western Europe. While in Portugal the minimum wage was 760 € by 2023 (by 2025 is 870 €, but to secure the same source of data and the same year for all countries, we considered this year 2023), in Spain already exceeded one thousand euros, in France was about 1,500 €, and in Germany, the Netherlands and Belgium of approximately 1,700 €. The Portuguese minimum wage was close to Greece and above most east countries, such as the Baltic countries. These values are adjusted to 14 months of annual salary for comparability purposes.
Approaching the minimum wage to the median reveals the result of an economy that has not been able to grow considerably, dominated by small companies with low levels of profitability. Although we see a trend of improvement in the latest years, the Portuguese economy and its labor market are still faced with high challenges of attractiveness, especially for its workers.
- The facts seen to the magnifying glass by André Pinção Lucas e Juliano Ventura – A partnership of the postcard with the Institute
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