A study released on Tuesday revealed that the national minimum wage (NMW) does not cover the basic expenses of an adult in almost all European Union (EU) countries, with Portugal ranking among the worst, as the value currently stands at 870 euros.
What path will the minimum wage in Portugal take?
According to the Government’s Program, unveiled in June, the administration led by Luís Montenegro aims to “ensure the increase of the minimum wage to 1,100 euros by 2029 and create conditions for the average salary to rise to 2,000 € by the end of the decade, based on adding inflation to total productivity gains.”
Currently, the guaranteed minimum wage is set at 870 euros. In the salary appreciation and economic growth agreement for 2025-2028, signed in October, the Government committed to increasing the national minimum wage by 50 euros per year, aiming to reach 1,020 euros by 2028.
Belgium is an exception (and minimum wage is even surplus)
The exception is Belgium, where the net minimum wage exceeds the average monthly cost of living (including rent) for a single adult.
The most critical situation is in Cyprus, where the net minimum wage is 886 euros, and the average monthly living cost is 1,801.90 euros. Following are countries like Czechia and Malta, with deficits of 803.19 and 796.59 euros, respectively.
Portugal? Cost of living exceeds wage
Next is Portugal, with a deficit of 717.22 euros when considering the cost of living and the wage paid.
The study indicated that the rent for a one-bedroom apartment in Portugal is 934.92 euros, with total basic expenses for a single person reaching 1,620.22 euros.
For a family of four, the average income remains insufficient in 16 EU countries, with Portugal in the top three.
The largest deficits are in Malta (1,468.62 euros), Greece (1,368.69 euros), and Portugal (1,339.07 euros).
On the other hand, countries such as Denmark (2,200.63 euros), Sweden (2,162.97 euros), and the Netherlands (1,735.76 euros) have surpluses.
“This study highlights a frequently overlooked reality: in much of Europe, earning the minimum wage is not enough to cover the cost of living. It’s not just an economic issue; it’s a matter of access and opportunity, especially for young people starting their careers,” stated Ramon O’Challaghan, president of the university.
Gisma University of Applied Sciences conducted this analysis based on minimum and average wages in EU member states, the cost of living, and average rents.
Each case assumed the net income of a full-time job (40 hours a week).
The study also considered data from Eurostat, the Organisation for Economic Co-operation and Development (OECD), and national statistics institutes.
