Minimum Wage in Portugal - Frequently Asked Questions

Is there a separate legislation relating to minimum wages in Portugal?

In Portugal there is a separate legislation relating to minimum wages, as provided by articles 273-275 of the Labour Law.

Do one or more minimum wages exist that is/are determined by law?

The law determines three minimum wages: a national one for Portugal, one for the Autonomous Region of Azores and one for the Autonomous Region of Madeira.

At what level is minimum wages determined at?

Minimum wages are determined at national level.

On what basis is minimum wage calculated?

Minimum wage is calculated monthly.

In case of weekly/monthly minimum age, are they based on any fixed number of hours?

The minimum wage is not based on a fixed number of hours.

Are governmental bodies, employer and/or trade union representatives involved in minimum wages setting?

Minimum wage is set by the Permanent Commission for Social Dialogue, which is composed by the Prime Minister and four Ministers, employer organizations (CIP, CCP, CAP, CTP) and trade union confederations (CGTP-IN and UGT). The minimum wage is then published in a Decree.

How are upratings (adjustments) of minimum wage/S decided upon?

Upratings of minimum wages are decided by the Permanent Commission for Social Dialogue, so jointly by government, employer and trade union representatives.

Which are the components of minimum wages in Portugal?

The minimum wage has one fixed component.

How frequently is the fixed component of minimum wages updated?

According to the law the minimum wage should be updated annually.

What is/are the yardstick/s on which minimum wage upratings are based?

According to article 273 of the Labour Code, in determining the guaranteed monthly minimum wage are weighted, among other factors, the needs of employees, the increased cost of living and productivity developments, the prices and incomes policy.

What is National Poverty line?

Click here to know the national poverty line in context with Minimum Wage, living wages and actual wages. Select the currency (Euro or national currency) to know national poverty line.

Which legal sanctions can be applied in compliance is lacking?

According to article 273 of the Labour Code, the employer who does not comply with the minimum wage law is fined.

Which month of the year is minimum wage rate revised in Portugal?

In Portugal minimum wage rate is usually revised in January.