Net salary in Portugal 2026: how it is calculated
Gross to net in three steps: IRS withholding, Social Security and — in your favour — the tax-free meal allowance.
The calculation in five steps
- Start from your monthly gross salary (base pay plus any fixed monthly allowances).
- Take off 11% Social Security.
- Apply the right IRS withholding table for your situation (marital status, dependants, region, disability).
- Add the tax-free meal allowance.
- That is what lands in your account — 14 times a year (12 months plus holiday and Christmas bonuses).
1. Social Security: 11%
Employees pay 11% of gross salary to Social Security. The employer pays another 23.75% on top (TSU), which does not show on your payslip. Unlike IRS, there is no refund at the end of the year.
2. IRS withholding
Employers withhold income tax every month using the tables in Despacho 233-A/2026: R × rate − deduction − amount per dependant. Up to €920 a month (the 2026 minimum wage) a single person with no dependants has no withholding.
Table I covers single people without dependants and married couples where both earn; table II single people with dependants (€34.29 off per dependant); table III married couples with a single earner. Madeira uses its own, lower tables (Despacho 19/2026) and the Azores have their own too.
Holiday and Christmas bonuses are withheld separately, as if they were the only income of that month. See the holiday and Christmas bonus guide.
Worked example: €1,500 gross
Single, no dependants, Mainland. €1,500 falls in the table I bracket up to €1,819: rate 24.1%, deduction €193.33.
- IRS: €1,500 × 24.1% = €361.50 − €193.33 = €168.17;
- Social Security: €1,500 × 11% = €165.00;
- Net: €1,166.83. Add a cash meal allowance of €6.15 × 22 days (€135.30) and you receive €1,302.13.
Second example: €2,000 with one child
A single parent with one dependant uses table II: €2,000 × 31.1% = €622.00 − €320.66 − €34.29 = €267.05 IRS. With €220 Social Security, net pay is €1,512.95 — €34.29 more than the same salary without dependants.
3. Meal allowance
In 2026 the meal allowance is tax-free up to €6.15/day in cash or €10.46/day on a meal card. Anything above that is subject to IRS and Social Security. For example, €10 a day paid in cash for 22 days leaves €3.85 a day over the limit, so €84.70 a month is taxed; paid on a card, the same €10 would be fully tax-free.
Examples (2026, single, no dependants, Mainland)
| Gross/month | IRS withheld | SS (11%) | Net (no meals) |
|---|---|---|---|
| €920.00 | €0.00 | €101.20 | €818.80 |
| €1,000.00 | €36.00 | €110.00 | €854.00 |
| €1,500.00 | €168.17 | €165.00 | €1,166.83 |
| €2,000.00 | €301.34 | €220.00 | €1,478.66 |
| €2,500.00 | €471.34 | €275.00 | €1,753.66 |
Withholding is an advance. Your final tax is settled in the next year's IRS return, where deductions (general expenses, health, education, rent, dependants) come in. See the IRS refund guide.
Common mistakes
- Comparing annual offers without checking 12 vs 14 payments. €28,000 a year is €2,000 × 14.
- Fearing a pay rise will push you into a higher bracket and cut your net pay. The tables are continuous: more gross never means less net.
- Not telling your employer about dependants, so table I is applied and too much is withheld.
Moving to Portugal?
Non-residents pay a flat 25%; IFICI (the successor of the NHR regime) taxes qualifying income at 20%. Read the guide for foreigners. Under 35? Check IRS Jovem.
FAQ
What is the net minimum wage in 2026?
€920 gross gives €818.80 net for a single person with no dependants, plus any meal allowance.
Why doesn't my payslip match the calculator?
Payslips may include overtime, absences, bonuses, union fees, insurance or a company car. The calculator models a normal month.
How much do I cost my employer?
Your gross plus 23.75% TSU: a €1,500 salary costs €1,856.25 a month before meal allowance and other benefits.