Understanding Portugal’s Median Income: Latest Statistics and Analysis
The median income in Portugal, according to the most recent data from 2023, stands at approximately €1,037 per month for a single person, or €12,444 annually. This figure represents the midpoint of the country’s income distribution, meaning half of Portuguese workers earn more and half earn less.
Breaking Down Portugal’s Income Statistics
In urban areas, particularly Lisbon and Porto, the median income reaches higher levels. Lisbon’s median income is approximately €1,325 per month (€15,900 annually), while Porto averages €1,167 per month (€14,004 annually). These figures reflect the higher cost of living and concentration of better-paying jobs in major cities.
In contrast, rural areas and smaller cities show lower median incomes, often ranging from €850-950 per month (€10,200-11,400 annually). The Alentejo region, for example, reports a median income of approximately €876 per month (€10,512 annually).
Income Distribution Across Sectors
The technology sector leads with higher earnings, where the median income reaches €1,800-2,200 per month (€21,600-26,400 annually). Traditional industries show lower figures:
- Manufacturing: €1,100 per month (€13,200 annually)
- Retail: €950 per month (€11,400 annually)
- Hospitality: €890 per month (€10,680 annually)
Education Impact on Earnings
Educational attainment significantly affects income levels:
- University graduates: median €1,650 per month (€19,800 annually)
- Secondary education: median €1,050 per month (€12,600 annually)
- Basic education: median €800 per month (€9,600 annually)
Recent Trends and Comparisons
Portugal’s median income has shown steady growth, increasing by 3.5% from 2022 to 2023. However, it remains below the EU average, which stands at approximately €1,900 per month (€22,800 annually). Neighboring Spain reports a median income of €1,370 per month (€16,440 annually).
The gap between the highest and lowest earners continues to be significant. The top 10% of earners receive a median income of €2,800 per month (€33,600 annually), while the bottom 10% earn approximately €700 per month (€8,400 annually).
These figures are based on official statistics from Portugal’s National Statistics Institute (INE) and Eurostat data, providing a clear picture of current income levels across the country. When considering these numbers, it’s important to note they represent pre-tax income and don’t include bonuses or other forms of compensation.
The rising cost of living, particularly in urban areas, has impacted the real purchasing power of these median incomes. Housing costs in Lisbon, for example, can consume 40-50% of the median income, significantly affecting disposable income levels.
Recent government initiatives, including minimum wage increases and tax reforms, aim to boost these income levels, with targets set for continued growth through 2025. The minimum wage currently stands at €820 per month (€9,840 annually), providing a baseline for understanding the broader income landscape in Portugal.
