Salaries in Portugal remain unattractive, especially when compared to other European Union countries. This is not a new reality, but the most recent data from the Eurostat show that, despite some progress, Portugal is still among the countries with the lowest average salaries.

Salaries in Portugal vs. Spain

The average annual salary in Portugal is around 23,000 euros gross for full-time workers. In Spain, that figure rises significantly to around 33,000 euros a year. In other words, the average Portuguese worker earns 10,000 euros less per year than a worker on the other side of the border. This difference is accentuated when we look at countries with greater purchasing power and higher wage levels.

The European Reality

The average salary in the European Union is 37,900 euros a year. This means that the average salary in Portugal is lower than the EU average, a disadvantage that limits purchasing power and competitiveness in the labour market. In countries like Luxembourg, for example, the average salary is 81,100 euros, while Denmark and Ireland have figures of 67,600 and 58,700 euros, respectively. These figures highlight the difference between Portugal and the countries with the most favourable salary conditions.

Portugal Closer to Low Wages in the EU

At the bottom of the European table are countries like Bulgaria, where the average adjusted annual salary is 13,500 euros, followed by Hungary (16,900 euros) and Greece (17,000 euros). Portugal, despite being above this group, is closer to these figures than to the countries with the highest incomes. This position reveals the challenge the country faces in getting closer to the wage levels practised by its European partners.

Gross Wages and Tax Challenges

It's important to remember that these salaries represent gross amounts. In other words, they are still subject to taxes and social contributions, which reduces the net amount that actually reaches the workers.

The Priority of Raising Wages

Portugal continues to face significant challenges in increasing the attractiveness of its salaries and retaining talent. Governments and companies recognise the importance of more competitive pay, but there is still a way to go. Therefore, the commitment to wage increases remains a priority that could benefit both the national economy and workers' quality of life.

For Portuguese companies such as Serro & Andrade, this analysis is essential to help understand the market position and to support clients in the best compensation and competitiveness strategies.