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Minimum wage in Portugal 2026: net pay and employer cost

Updated 26 October 2026 · fisco.pt team · How we calculate

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Portugal's minimum wage is €920 gross a month in 2026, paid 14 times a year, with €970 planned for 2027. Here is what a minimum-wage worker actually takes home, the deductions and what it costs the employer.

The 2026 minimum wage

The guaranteed minimum monthly wage was set at €920 from 1 January 2026 by Decree-Law 139/2025, up €50 from 2025. It is a gross, full-time figure for the mainland; Madeira and the Azores set higher regional amounts. With 14 payments a year (12 months plus holiday and Christmas bonuses), that is €12,880 a year.

Net pay: €818.80

No income tax is withheld because the 2026 withholding tables start above €920. At the end of the year the tax-free minimum (mínimo de existência, €12,880 in 2026) brings IRS to zero if this is your only income. The meal allowance is not compulsory everywhere — it depends on your contract or collective agreement — but it is tax-free up to €6.15 a day in cash or €10.46 on a card.

Over a year: 14 × €818.80 = €11,463.20, plus €2,530.11 of meal allowance over 11 months, €13,993.31 in total.

Meal allowance and the end-of-year return

Most employers pay a daily meal allowance for each working day. Up to the tax-free limits it pays neither IRS nor Social Security; anything above is taxed as salary. With 22 working days on a card, that adds €230.01 a month, which is why many minimum-wage workers actually receive about €1,049 in a normal month.

On the annual return there is nothing to pay, and usually nothing to get back either: a refund only returns tax that was withheld, and none was. Tax credits for rent, health or education cannot take your tax below zero, so they bring no extra money at this income level.

Holiday and Christmas bonuses

The two bonuses are also €920 gross and €818.80 net each. If you receive them in twelfths (duodécimos) your monthly pay rises, but the yearly total is the same. Part-time workers are entitled to a proportional amount of the minimum wage.

Cost to the employer

The employer adds 23.75% Social Security (TSU): €218.50 a month, so €1,138.50 per salary payment and €15,939 a year, or €18,469.11 including the meal allowance — before workplace accident insurance and occupational health costs.

The hourly minimum, using the Labour Code formula (monthly pay × 12) ÷ (52 × weekly hours), is (€920 × 12) ÷ (52 × 40) = €5.31 for a 40-hour week.

Why there is no income tax

The tax-free minimum (article 70 of the IRS Code) guarantees that, after tax, you keep at least €12,880 a year in 2026 — exactly 14 × €920. Since that is your whole income, the tax is zero. The 2027 Budget proposal raises it in step, to €13,580 (14 × €970).

2027: €970

For 2027 a minimum wage of €970 is planned, matching the 2027 Budget proposal's €13,580 tax-free minimum (970 × 14). It becomes final once the decree-law is published. Social Security would be €106.70 and net pay €863.30, assuming the 2027 withholding tables again exempt the minimum wage (not yet published). Employer cost: €1,200.38 a month. See IRS 2027 changes.

Common mistakes

• Mixing up gross (€920) and net (€818.80).
• Counting the meal allowance towards the minimum wage — it does not count.
• Forgetting the 14 payments when comparing with other countries.
• Assuming the employer only pays €920: with TSU it is €1,138.50.
• Not checking whether you must file a return: exemption depends on the type and amount of income, so confirm on the Portal das Finanças.

FAQ

Do minimum-wage earners pay income tax?

No — no monthly withholding and, with no other income, zero tax on the annual return.

Will I get a refund?

Usually not, since nothing was withheld. See the IRS refund guide.

Does it apply to freelancers?

No, only to employment contracts. See freelance tax.

When does the new rate start?

Normally on 1 January, once the decree-law is published.

For any other salary, see the net salary guide.