Portugal: New Minimum Wage Levels Announced for 2021

January 11, 2021 Lucy Halse

Key Points

  • The Portuguese government has increased its minimum wage levels nationwide in 2021
  • Minimum wages are now EUR 665 per month
  • The new wages apply to the Temporary Stay Visa and Residence Visa for Local Hires
  • The change affects current permit holders and new applicants as of January 1, 2021
  • The costs of housing and living can be calculated into the employee’s minimum wage levels
  • Employers must compensate workers in EUR

Overview

The Portuguese government has increased minimum wage levels nationwide for 2021. Minimum wage levels will increase to EUR 665 per month.

What are the Changes?

Minimum wage levels will increase 4.7% across Portugal.

Who is Affected?

The new minimum wage levels apply to the Temporary Stay Visa and the Residence Visa for Local Hires. Minimum salaries for the EU Blue Card and Residence Visa for Highly Qualified Staff are not impacted.

What Should Employers and Applicants Know?

The change applies to all permits as of January 1, 2021, including current permit holders and new permit applicants.

The cost of housing allowances and living can be calculated into an employee’s minimum wage calculations, provided he or she is on a home contract. The allowances must be transferred to the employee’s bank account, paid every month, taxable, processed through payroll, fixed, and guaranteed. The salary cannot be prorated except in the first and last month of the worker’s assignment or employment.

Employers must compensate their employees in EUR, regardless of payroll location and currency fluctuations.

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Content in this publication is not intended as legal advice, nor should it be relied on as such. For additional information on the issues discussed, consult an Envoy-affiliated attorney or another qualified professional.

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