How this works
The minimum wage is officially the Guaranteed Minimum Monthly Wage (RMMG). For 2026, Decree-Law 139/2025 set it at €920 gross per month on the mainland, effective 1 January. Madeira and the Azores approve their own, higher figures. Gross is not what lands in your account: at the minimum wage, 11% goes to Social Security and zero to income tax, because withholding at the minimum level is nil.
- 1
Pick your region
Gross differs: €920 mainland, €980 Madeira, €966 Azores (2026 figures).
- 2
Subtract Social Security
The employee pays 11% of gross. On the mainland that is €101.20 a month.
- 3
Income tax is zero
IRS withholding at the minimum wage is nil, thanks to the minimum-subsistence rule.
- 4
Count the whole year
There are 14 payments: 12 months plus holiday and Christmas subsidies. The annual total uses all 14.
Frequently asked
What is the minimum wage in Portugal in 2026?
On the mainland, the Guaranteed Minimum Monthly Wage (RMMG) is €920 gross per month since 1 January 2026, set by Decree-Law 139/2025. The autonomous regions pay more: €980 in Madeira and €966 in the Azores. These figures are for full-time work.
How much do I take home on the minimum wage?
On the mainland, 11% goes to Social Security (€101.20) and nothing to income tax — minimum-wage earners are exempt from withholding. You keep €818.80 net per month. There is no IRS withholding because the minimum wage sits below the threshold where deductions start.
Why is the income tax zero?
The withholding tables ensure that someone earning the RMMG has no income tax taken from their payslip. This is the "mínimo de existência" rule, which shields income at the minimum-wage level. You may still need to file the annual IRS return, but the monthly withholding is zero.
What are the holiday and Christmas subsidies?
In Portugal you get 14 payments a year: 12 monthly salaries plus a holiday subsidy and a Christmas subsidy, each equal to one month’s pay. They can be paid in full (June and November/December) or in twelfths spread across the 12 months. The yearly total is identical; only the monthly timing changes.
Is the minimum wage different in Madeira and the Azores?
Yes. The autonomous regions set their own RMMG by regional decree and both are above the mainland: Madeira at €980 and the Azores at €966 for 2026. The 11% Social Security deduction still applies; the net is just higher because the gross is higher.
DISCLAIMER
Calculation for a full-time employee with no other deductions (union, garnishments, special regimes). The deduction is 11% to Social Security and IRS withholding at the minimum wage is zero. 2026 figures: Decree-Law 139/2025 (mainland) and regional decrees for Madeira and the Azores. Not tax or labour advice; always check your own payslip.