Portugal’s skilled workforce, cost-effective labor, and modern infrastructure make it an ideal outsourcing destination. Employees seeking remote partnerships in the country may wonder, “What is the average salary in Portugal?” This information will help them prepare a fair job offer. 

The average salary in Portugal is EUR 1602, about USD 1782. However, salaries vary based on education, experience, location, position, and industry. You must also consider how Portuguese wages compare to earnings worldwide. 

This guide will explore all aspects of Portugal’s wages to provide deeper insight. 

What is the Average Salary in Portugal?

The average salary in Portugal is €1602, about $1782, making it one of the poorer countries in Western Europe. Salaries are low due to poor productivity linked to a lack of technology. The government was also severely affected by the 2008 recession. 

Median Income

Portugal’s median monthly income is €1240, about $1379. Half the country earns lower salaries; the other half earns higher wages. When comparing average vs median salary, average salaries are much higher due to wage inequality in the country. 

Salary Range

The salary range spans from the lowest to the highest in the country. In Portugal, low earners make around €900, about $1001, while high earners make around €12,360, about $13,754. 

Salary Comparisons in Portugal

The average salary gives an indication of what workers in Portugal earn, but wages vary based on education, experience, location, industry, and profession. The following sections will explore how these factors impact earnings. 

Salary by Profession

The following salary comparison chart reveals how wages vary by profession.

Position Average Monthly Salary (€)
Chief Executive Officer 7,781
IT Director 7,200
Call Center Director 6,641
Sales Director 6,261
IT Architect 6,015
Financial Manager 5,763
Lead Developer 5,628
Head of Product Development 5,367
Data Scientist 4,979
IC Design Engineer 4,933
Banking Cashier 1,396
Clothing Technologist 1,346
Packer 1,344
Fabric Cutter 1,328
Seamstress 1,298
Tailor 1,291
Porter 1,254
Medical Records Clerk 1,250
Social Counselor 1,214

Average Salary Based on Education

Education is a factor in employment rates and wage determination. In Portugal, 8.1% of 25-34-year-old workers with a vocational upper secondary attainment are unemployed, and 8.4% of workers with a general upper secondary attainment, establishing the need for skilled training and education. 

Further studies revealed high returns on education throughout the country of 11% as compared to the average 8% in other countries. Returns increase based on the years of education under your belt. For example, workers with education levels ranging from secondary to university see 12% to 18% returns. 

Returns tend to be highest in the engineering fields and lowest in the human and social sciences industry.

Salary vs. Experience

Studies also reveal that experience significantly impacts wage determination as returns on education become higher with age. Educated workers over 40 see a 40% increase in earnings while workers in the same group with lower education levels see a 35% increase in earnings. 

These statistics compare to under-40 well-educated groups, which saw a 28% increase in earnings, and low-educated workers in the same age group, who saw a 25% increase in wages.

Salary by Location

Location is another factor that impacts salaries. Workers in urban areas tend to earn more than rural workers due to higher living costs and proximity to large companies offering high-paying job opportunities. In Portugal, workers in major cities like Lisbon and Porto see higher earnings with monthly averages of €2550 and €2440, respectively. Earnings in smaller towns and rural areas are comparatively lower. 

What is the Minimum Wage in Portugal?

The minimum wage in Portugal is €870 (about $968 Portugal minimum wage USD) per month, after a 6.1% increase that brought it up from €820 monthly on Jan. 1, 2025. Minimum wages are slightly higher in the Autonomous Region of Madeira (€915 monthly) and the Autonomous Region of Azores (€913.50 monthly). 

World Salary Comparisons

The following charts compare salaries in Portugal to earnings in developed, developing, and least developed countries to provide deeper insight. 

Portugal vs. Developed Countries

Country Average Salary Comparison to Average Portugal Salary
United Kingdom €3,000 (approx. $3,116) – 93%
United States $5,677 – 256%
Norway 50,790 kroner (approx. $4,700) – 193%
Germany €4,300 (approx. $4,467) – 181%
Austria €3,500 (approx. $3,636) – 125%

Portugal vs. Developing Countries

Country Average Salary Comparison to Average Portugal Salary
Romania 4,000 RON (approx. $835) 90%
Russia 73,709 Rubles (approx. $700) 128%
Albania €1,500 (approx. $1,550) 3%
Kazakhstan 342,082 Tenge (approx. $645) 146%
Ukraine 18,000 Hryvnia (approx. $500) 220%

Portugal vs. Undeveloped Countries

CountryAverage SalaryComparison to Average Portugal Salary
Thailand97,500 Baht (approx. $2,772)– 75%
Philippines18,423 PHP (approx. $875)81%
Vietnam8.5 million dong (approx. $360)344%
Egypt13,244 EGP (approx. $263)515%
Pakistan45,000 PKR (approx. $150)966%

Portugal is a developed country with a high Human Development Index and a strong economic structure. Its dominant industries include service, manufacturing, and tourism. The country’s economy has shown steady growth over the past few years. 

The county is becoming a favorable outsourcing destination due to its skilled workforce, low-cost labor, and strategic time zone. It offers a nearshoring advantage for European countries. Portugal also ranks high on the Digital Economy and Social Index for connectivity, human capital, and technology. 

Top 3 Industries Outsourced to Portugal

Employers seeking outsource opportunities in Portugal will benefit most by focusing on the following sectors. 

IT Services

Portugal has a booming IT industry and has established itself as a favorable destination for foreign investments. Porto and Lisbon are emerging as hubs for innovation in AI, fintech, and blockchain. The country’s national ICT accounts for nearly 10% of its GDP. 

IT experts in Portugal earn around €2000 (about $2225) while their American counterparts earn closer to $5000, providing employers with plenty of bargaining power.

BPO

Companies often turn to Portugal for business process outsourcing (BPO) services like customer support, finance, HR, and IT. It is a particularly popular destination for call centers, which are highly concentrated in Lisbon and Porto. The country’s multi-lingual workforce and cost-effective labor make it a popular choice for these services. 

Customer service reps in the country earn around €1200, about $1335, while reps in America earn closer to $3000 monthly. This leads to significant cost savings for companies looking to outsource.

Manufacturing

Manufacturing is a significant source of income for Portuguese workers, with dominant sectors including metal, mechanical products, and electronics. The country is known for its precision engineering and sustainable practices. Its strategic location makes it a popular choice for countries targeting European markets. 

Conclusion

Portugal’s skilled workforce, low-cost labor, and strategic location make it a popular outsourcing destination. Employers who hire in the country can take advantage of reduced expenses and exceptional products and services while helping the country remain competitive in the European market, creating a beneficial situation for all involved parties.