“This is a structural factor of the Portuguese economy. The Portuguese economy, unfortunately, has always been a less advanced economy than a substantial part of the economies of the European Union [EU] and the eurozone, especially the economies of central and northern Europe,” said Joaquim Miranda Sarmento.
“We continue to be, within the group of 27, and especially within the group of 20 in the eurozone, unfortunately, still one of the least advanced economies, but this is historical and structural, dating back many decades,” reinforced Joaquim Miranda Sarmento, speaking upon arrival at the Eurogroup meeting in Brussels.
According to the minister, however, there is “nominal and real wage growth [that] is happening in all areas of activity and for practically all professional profiles.”
Portugal has thus “followed a path of convergence, both in economic growth and in wage growth” to try to counteract it, he observed.
“Wages are on average growing in real terms above 4%, and therefore this means that families, in general, […] are experiencing an improvement in their income, their wages, their purchasing power, their standard of living, and this is a path of convergence that the country has to follow,” added Joaquim Miranda Sarmento.
Average salary
The average annual salary for a full-time worker in Portugal was €24,818 in 2024, below the EU median of €39,800, making it the tenth lowest-paid country, it was announced today.
Data published by the EU statistical office, Eurostat, shows that last year the average adjusted annual full-time wage for workers in the EU was €39,800, representing a 5.2% increase compared to the €37,800 recorded in 2023.
In Portugal, this figure was €24,818 in 2024, compared to €23,184 in 2023 and €21,131 in 2022.
Portugal is therefore the 10th country with the lowest average annual wage, surpassed by countries such as Bulgaria (€15,387), Greece (€17,954), Hungary (€18,461), Slovakia (€20,287), Romania (€21,108), Poland (€21,246), Latvia (€22,262), Croatia (€23,446) and the Czech Republic (23,998).
Across all EU countries, the highest average annual adjusted full-time salary was recorded in Luxembourg (83,000 euros), followed by Denmark (71,600 euros) and Ireland (61,100 euros).
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The minister is right of course. Productive economies will allow higher wages since their products are more in demand. That's why unions are entirely absurd in thinking that merely raising wages can be a sustainable option to improving people's fortunes. A country needs to have products that are in demand worldwide in order to prosper in a non-inflationary real way. Denmark for example has such in-demand products which is why a country with half the population of Portugal has a higher standard of living. And it is not simply the Danish welfare state which is the cause of the prosperity. If Portugal were to develop the world's first nuclear fusion reactor, which the US will develop in about 30 years thereby bringing ridiculously ugly solar panels and windmills to ruin, it would develop into the world's most advanced and prosperous economy. Otherwise, hang tight, save and invest your pennies, and enjoy the sunny weather.
By Tony from USA on 12 Nov 2025, 23:18
It's not only the economy that's "less advanced"... It's everything in Portugal.
By Fred Doe from Other on 13 Nov 2025, 09:05
Except the cost of living, especially housing, is accelerating much faster than the wage increase, so in real terms purchasing power is going down all the time. Portugal needs smarter politicians.
By Jon Sigurd Smith Johnsen from Lisbon on 13 Nov 2025, 11:30
Wages are determined by productivity and what employers can afford to pay, not by how advanced the state of the economy is. You can't keep jacking the minimum wage without this ultimately feeding through into higher prices - especially in labour-intensive industries like hotels and catering - so pay rises have to be justified financially and economically. Doubling all salaries tomorrow wouldn't have a positive result for example. It would simply double prices, leaving no-one any better off.
By Billy Bissett from Porto on 13 Nov 2025, 16:10
Although the minimum wage in Portugal is lower than most EU countries, most do not realize it is the same as the minimum wage in the US, unless you are a restaurant server, in which the wage could be $2.00 per hour. The difference? The Portuguese have access to a public heath care system which offers one of the best healthcare systems in the world. Quality of life is much better, citizens aren't filing bankruptcy due to illness. The Portuguese citizens have more housing rights, access to public transportation and a government that engages more than a two party system. The sad truth is that the elites rule the world and our governments cower to them.
By Gaybrielle from Algarve on 13 Nov 2025, 18:08