The minimum wage in Portugal continues to increase and there is already a set date for a new level. According to the trajectory announced by the Government, the amount will reach 1,100 euros per month in 2029, reinforcing a path of gradual increases started in recent years and which has a direct impact on hundreds of thousands of workers.
Currently, and since January 1, 2026, the national minimum wage has been set at 920 euros gross per month, which represents an increase of 50 euros compared to the previous year. This value applies to the mainland and corresponds to an annual remuneration of 12,880 euros, considering payment in 14 months, according to DECO PROteste.
The Executive has reiterated that the objective is to continue to increase the value of the minimum wage throughout the legislature, with progressive increases that will allow it to reach 1,100 euros in 2029. This goal is part of the commitments made with social partners and the policies for valuing work.
What is included in the minimum wage
This value only corresponds to the worker’s basic remuneration. Food subsidies, subsistence allowances, commissions, prizes or gratuities are not part of this amount and are in addition to the base amount defined by law.
Employees who earn the minimum wage are entitled to receive it 14 times a year, including holiday and Christmas bonuses, as provided for in current labor legislation.
Discounts and monthly net value
Although there is no rule that automatically determines IRS exemption for those who receive the minimum wage, in practice this income ends up not giving rise to tax payable. Even so, the mandatory 11% discount for Social Security remains, as stated by the same source.
Thus, in 2026, a worker who earns the minimum wage of 920 euros gross receives around 818.80 euros net per month, after the Social Security contribution.
Food allowance can also be reviewed
In addition to the minimum wage, food subsidies are another topic highlighted. An update to the maximum tax-free amount is expected, with an increase of around 0.15 euros, following criticism from unions, who considered the increase insufficient.
In 2025, the food allowance in Public Administration is 6 euros per day when paid in cash, an amount that corresponds to the maximum tax-exempt limit. When paid by card or meal voucher, the exemption ceiling rises to 10.20 euros per day.
Situations in which it is allowed to receive less
The law allows exceptions to the payment of the minimum wage in specific cases. Part-time workers receive an amount proportional to the number of hours worked. In internship, apprenticeship or certified training contexts, the minimum wage can be reduced by up to 20% for a limited period, depending on the worker’s qualifications.
According to , reductions are also foreseen for workers with disabilities or reduced work capacity, as long as they are duly certified, respecting the limits defined in the Labor Code.
What about independent workers?
The minimum wage only applies to employees. For self-employed workers, the relevant concept is the so-called “existence minimum” of the IRS, which is currently set at 11,480 euros per year. Up to this amount, income is exempt from tax.
In practice, the Government has guaranteed that income equivalent to the minimum wage remains protected from IRS taxation, ensuring a minimum level of income available also for those who work on their own.
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