Minimum wage in Portugal 2026: €920 — what changes in net, IRS and SS

The base numbers

The update of the national minimum wage to €920 results from the Tripartite Agreement 2025-2028 between Government, employers and labour unions. It is a €50 or 5.7% rise from 2025.

Gross vs net structure

For someone on the minimum wage, the math is simple — only Social Security applies.

€920 gross
- €101.20 Social Security (11%)
- €0 IRS (existence minimum)
= €818.80 net

This calculation assumes:

• Mainland
• No dependants
• No Youth IRS regime
• No other deductions (union, health plan, etc.)

If you have dependants or special rights, the calculation changes (IRS is still zero but there are supplements like child benefit). For the exact figure, use the calculator below.

The IRS rule: why it is still zero

In Portugal there is an existence minimum — a level of income below which no one pays IRS. The law guarantees that the minimum wage is always below this existence minimum.

For 2026, the existence minimum was also updated to track the wage increase. Result: those earning €920 have zero withholding. Only earnings above the minimum start to be taxed.

This rule matters for the net calculation — you are not "being saved by the Government", the system is designed so that minimum-wage earners do not pay direct taxes on labour.

Hourly rate: the rule many forget

The law sets a monthly value, but there is an important parallel calculation:

Minimum hourly = €920 ÷ 173.33h = €5.31/h

(173.33h comes from 40h × 52 weeks ÷ 12 months)

This rule applies when:

• You work part-time
• You do overtime
• The company uses time banking
• You are under flexible scheduling

If the employer pays below €5.31/hour, that is non-compliance — regardless of the monthly salary.

Azores and Madeira: regional uplifts

The Autonomous Regions have the constitutional right to their own minimum wages. Typically above the mainland figure.

[Common interpretation:] in 2026, the regional minimum wages are expected to be:

Exact values appear in the regional official gazettes (Jornal Oficial da RAA, JORAM). Always check before running calculations — this table is an estimate based on prior-year patterns.

What changes with the rise (in € and in practice)

For the minimum-wage worker

• An extra €50 gross / €44.50 net per month
• An extra €700 gross per year (×14 months)
• Holiday and Christmas bonuses also rise (paid on the new salary)

For the company

• Total worker cost goes up ~€67/month (including TSU 23.75% paid by the company on top of gross)
• Can request partial compensation through IAPMEI (specific support programme for companies raising minimum wages)

For CCT brackets

• Some collective agreements use the minimum wage as a reference. When it rises, other levels rise proportionally. Check the sector's CCT in the BTE (Boletim do Trabalho e Emprego).

Common mistakes and traps

1. "The employer says the rise depends on me doing overtime". False. The rise is by legal force and automatic — it is not conditional on anything.

2. "The meal allowance counts toward the minimum wage". No. The base salary does not include allowances. The €920 is the base pay only. Meal allowance is paid separately.

3. "The hourly rate is lower for short schedules". No. The minimum per hour is always the same (€5.31), regardless of the work regime.

4. "Professional internships pay below minimum wage". There are special rules for IEFP internships (90% of the minimum wage), but curricular or private-agreement internships must respect the minimum. If in doubt, file a complaint with ACT.

5. "You take home the minimum wage in full". Wrong. €920 is gross. Net (after Social Security) is about €818.80.

Next steps by situation

• The employer did not update your salary in January 2026 → notify the company in writing that the rise is automatic. If they do not correct within 8 days, file with ACT.
• You earn the minimum and want to confirm net → use the net salary calculator with your data (dependants, region, Youth IRS).
• You are part-time and suspect they are paying below the hourly minimum → divide what you receive by the actual hours worked and compare with €5.31/h. Difference = right to claim (Art. 337 CT).
• You are under a CCT and want to know if your level rose → check the BTE on the DGERT website or ask your sector union.
• You are negotiating a new contract and the proposed wage is below the minimum → refuse. Any clause setting wages below the minimum is null and void (Art. 273 CT).