Minimum Wage
Both the Constitution and the Labour Code provide for a national minimum wage. It is updated annually by specific legislation following consultation with the social partners. The amount is set in consultation with the Standing Committee on Social Concertation of the Economic and Social Council (Conselho Económico e Social) , which is a tripartite body.
According to the Constitution, the State is responsible for setting and updating the minimum wage with regard to workers’ needs, increases in the cost of living, the development of production sectors, economic and financial stability, and capital accumulation for development purposes. Similar provisions are found in Article 273 of the Labour Code.
As of 1 January 2025, the minimum wage in mainland Portugal is €870.00 per month, set by Decree-Law No. 112/2024. In the Azores, a 5% regional increase applies under Regional Legislative Decree No. 8/2002/A, raising the value to €913.50. In Madeira, the regional minimum wage is fixed autonomously at €915.00 by Regional Legislative Decree No. 20/2024/M, rather than being calculated as a percentage increase over the national rate.
The Labour Code allows for a reduction of up to 20% for apprentices, trainees, and interns for a maximum of one year. For workers with reduced capacity, the minimum wage can be proportionally reduced if the effective working capacity is more than 10% below full capacity, up to a maximum reduction of 50% (Article 275).
Non-payment of the minimum wage constitutes a very serious offence. The Labour Inspectorate (ACT) is responsible for enforcing compliance. Failure to comply can result in heavy fines, which also compel the employer to pay outstanding wages to the worker.
Source: Articles 273–275 of the Labour Code; Article 59(2) of the Portuguese Constitution; Decree-Law No. 112/2024; DLR No. 8/2002/A; DLR No. 20/2024/M
For updated minimum wage rates, please refer to the section on minimum wage.
Regular Pay
Remuneration is defined in the Labour Code as the payment to which a worker is entitled in return for work performed. It includes base pay and other regular and periodic benefits, such as seniority allowances, while expressly excluding items such as travel expenses.
Wages can be paid weekly, fortnightly, or monthly. Payment must be made on a working day, during working hours or immediately thereafter, and at the workplace or another agreed location.
Wages are generally paid in cash, but payment can also be made by cheque, money order, or bank transfer, with costs borne by the employer. In-kind benefits may also form part of wages, but they cannot exceed 50% of the statutory minimum wage (global limit under Article 274; the same article also sets specific percentages: up to 35% for full board, 15% for a main meal, and 12% for accommodation).
Deductions from wages are generally prohibited, except those required by law (income tax and social security contributions), by final court decision, or when otherwise legally authorised. Under Article 279(3), authorised deductions (other than mandatory legal or judicial ones) may not exceed one-sixth of the worker’s wage.
Workers are also entitled to a Christmas allowance, equal to one month’s wage, payable by 15 December each year (Article 263), and a holiday allowance, equal to one month’s wage, in addition to normal pay during annual leave (Article 264).
Source: Articles 258, 260, 263, 264, 274–279 of the Labour Code
