Is the minimum wage in Portugal good enough in 2024?

Most people think that the minimum wage in Portugal is good enough. However, others believe the minimum wage is too low.

It depends on factors such as region and industry or whether you are looking for a company to work for or hire employees for your company.

In this article, we will analyze both sides of the coin and explore under what circumstances the minimum wage in Portugal is good or not.

What is minimum wage?

The minimum wage is the best amount employers can legally pay their employees for the time and labor invested in creating goods and services.

In Portugal, the minimum wage is not guaranteed by the government but by the Portuguese Constitution.

The Constitution establishes the minimum wage as the amount necessary for a person to live with dignity.

How much is the minimum wage in Portugal?

The minimum wage in Portugal in 2022 is €705.00 per month, currently equivalent to around $700.

In the United States, the minimum wage is US$ 7.25 per hour, around US$ 1,260.00 per month, if working 40 hours a week.

The minimum wage in Portugal does not seem as good as in the United States. However, it is important to remember that living costs in Portugal are significantly lower than in the US.

Is the minimum wage in Portugal good enough?

Most people agree that the minimum wage in Portugal is good enough to live with dignity.

In addition to the minimum wage, there are other benefits that Portuguese workers can receive, such as holiday and Christmas allowances, unemployment insurance, and others.

All this makes the country very appealing for workers of other nationalities who want to work or open their own business in Portugal.

The cost of living in Portugal

Living costs in Portugal are pretty low when compared to other European countries. One of the main reasons for this is that most people work full-time.

In addition, the government of Portugal offers several tax incentives for families. Furthermore, it invests heavily in public services such as education and health.

Regional differences in salary in Portugal

There is a significant difference between the salaries paid in the different regions of Portugal. However, it is important to bear in mind that living costs also vary considerably between different areas of the country.

For example, rents are generally lower in the North and Center of Portugal than in the Algarve.

Thus, although there are regional differences in minimum wages, the truth is that the purchasing power of the minimum wage varies greatly depending on the region where you live.

The purchasing power of the minimum wage in Portugal

It is no secret that the minimum wage in Portugal is not one of the best in Europe. However, this does not mean that the purchasing power of the Portuguese minimum wage is low.

According to a recent study, the purchasing power of the Portuguese minimum wage is greater than that of other European countries, such as Germany, Spain and, Italy.

This means that, despite having one of the lowest minimum wages in Europe, the Portuguese still have good purchasing power. This is due to the low inflation and interest rates in Portugal.

As a result, Portuguese people can buy more products and services for every euro they earn.

On the other hand, it is important to note that the cost of living in Portugal is also relatively low. This means that the Portuguese can lead a good life even with a relatively low minimum wage.

Is it worth working in Portugal?

If you want to work in Portugal, the minimum wage may not be the determining factor. In recent years, Portugal has attracted many foreign workers.

This is due to several factors, including the mild climate, quality of life, and low housing costs. Another factor that has contributed to Portugal's popularity as a work destination is its fair wage system.

Is it worth hiring in Portugal?

To start a business in Portugal, you must have a solid business plan and get approval from the Portuguese Government.

In addition, it is crucial to consider the cost of living in the country, the taxes your company will pay, and a fair salary each employee should receive based on the region and industry in which they will work. After these considerations, you can decide if hiring for your company in Portugal is worth.

Conclusion

Portuguese workers have one of the lowest minimum wages in Europe, but that does not mean they are underpaid.

The minimum wage in Portugal is good enough to live comfortably, depending on the circumstances discussed above.

The cost of living in Portugal is relatively low, which means workers can save even more money.