Portugal's Average Monthly Wage Climbs 6% to €1,741, INE Confirms
The average gross monthly remuneration per worker in Portugal increased by 6.0% to €1,741 in the second quarter of 2025, compared to the same period in the previous year. This statistical announcement was made by the National Statistics Institute (INE) in its latest quarterly report on earnings, providing a comprehensive overview of the nation's wage dynamics.
The data was compiled based on information concerning 4.8 million job positions, corresponding to beneficiaries of the Social Security system and subscribers to the General Pension Scheme. This represents a 1.8% increase in the number of covered jobs compared to June 2024, indicating parallel growth in both employment and wages. The INE's methodology involves analyzing remuneration data across multiple dimensions to ensure a granular and accurate depiction of the labour market.
According to the INE's findings, the increase was observed across the primary components of salary. The regular component, which excludes overtime and other variable payments, grew by 5.7% to reach €1,368. Similarly, the base salary component saw an identical 5.7% rise, settling at €1,281. When accounting for the Consumer Price Index, the real increase in the total average gross monthly remuneration was 3.7%, with the regular and base components growing by 3.4% in real terms, confirming that wage growth has outpaced inflation over the period.
The analysis provides a detailed geographic and sectoral breakdown, although specific regional figures were not the focus of this particular release. The wage growth was widespread across nearly all analyzed sectors of economic activity, company sizes, and institutional sectors. This broad-based increase suggests a nationwide economic trend rather than growth concentrated in a few isolated areas.
The report compares wage evolution from the second quarter of 2024 to the second quarter of 2025, showing a consistent upward trajectory. This year-over-year comparison is crucial for identifying long-term trends in the Portuguese economy and labour market. The sustained growth points towards increasing economic productivity and demand for labour across the country.
A deeper look into the market segments reveals varied rates of growth. The most significant increases were recorded in 'Agriculture, production animal, caça, floresta e pesca', which saw an 11.5% surge. Strong growth was also noted in the public sector, with a 7.3% increase, and in companies employing between 50 and 99 workers, which registered a 7.1% rise. Of particular note are the 'Serviços de alta tecnologia com elevada intensidade de conhecimento', where wages grew by 6.9%, reflecting the country's push towards a knowledge-based economy.
Industry experts have begun to comment on the statistical trends. An economist from a major Portuguese bank noted, "The 6.0% nominal increase is a very positive sign, reflecting a tight labour market and the ongoing recovery. The fact that real wages are growing at 3.7% is fundamental for household disposable income and, consequently, for domestic consumption and overall economic stability."
In response to the data, a government spokesperson stated that the figures are encouraging and reflect the positive impact of recent economic policies aimed at fostering job creation and improving living standards. The government maintains that its focus remains on creating a favourable environment for continued wage growth and economic development across all regions of Portugal.
Historically, Portugal has worked to align its wage levels with the European average. These current figures represent a significant step in that direction. The consistent growth over the past several quarters suggests a structural improvement in the Portuguese economy, moving beyond post-pandemic recovery into a phase of sustained expansion.
The INE has announced that it will continue to monitor these trends closely, with the next quarterly report expected to provide further insights into the evolution of the labour market for the remainder of 2025. These future reports will be critical for assessing whether the current pace of wage growth can be maintained.
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