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Average salary increased by 6%: How much is being earned in Portugal?

The average total gross monthly remuneration per worker (by job position) increased by 6.0%, reaching 1,741 euros in the quarter ending June 2025 (corresponding to the second quarter of the year), compared to the same period in 2024, announced the National Statistics Institute (INE) this Thursday. 

“Both the regular and base components of that remuneration rose by 5.7%, amounting to 1,368 euros and 1,281 euros, respectively,” the INE report states. 

In real terms, the INE explains, “considering the variation in the Consumer Price Index, the average total gross monthly remuneration increased by 3.7%, and its regular and base components both increased by 3.4%”.

“These results cover 4.8 million jobs, corresponding to beneficiaries of Social Security and subscribers of the Caixa Geral de Aposentações, up 1.8% from the same period in 2024,” the INE explains.

It is further noted that “in relation to June 2024, the average total gross monthly remuneration increased in almost all dimensions of analysis of this Highlight (economic activity, company size, institutional sector, technological intensity, and knowledge intensity)”.

“The largest increases were observed in the activities of “Agriculture, animal production, hunting, forestry and fishing” (section A; 11.5%), in companies with 50 to 99 workers (7.1%), in the public sector (7.3%), and in companies of “High-tech services with strong knowledge intensity” (6.9%),” the INE report notes.

Awaiting the salary? There are workers not withholding IRS this month

The month is halfway through, and if you are already waiting for your salary, you should know that those earning up to 1,136 euros will not withhold Personal Income Tax (IRS) in August and September, under the new tax tables.

It is worth recalling that the new IRS tables reduce the monthly tax withholding until the end of the year, and in August and September, those earning up to 1,136 euros will not pay any tax to the State, as the rate is 0%.

The decree by the Secretary of State for Fiscal Affairs, Cláudia Reis Duarte, includes tables for two distinct periods.

Some apply in August and September, with exceptionally lower rates, to compensate for withholdings made between January and July, when it was not yet possible to account for the IRS reduction approved by parliament this month.

Other tables relate to the months of October, November, and December, reflecting the final version of the IRS. In these three months of the year, the rates are higher than in August and September but lower than current ones.

Employers must apply the new rates to August salaries, as the decree takes effect on the 1st of that month. However, if they do not, they may “rectify them in withholdings to be made in the following months,” until December, as per the Government’s decree.

Já à espera do salário? Há trabalhadores que não descontam IRS este mês
Beatriz Vasconcelos with Lusa | 08:58 – 14/08/2025

In August and September, the withholding rate will be 0% for gross salaries up to 1,136 euros, which means that salaries up to this amount will not withhold IRS – and what happens in the following months? Review all that will change.

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