Portugal’s average salary trails Southern European neighbors as wage gap with Northern Europe widens

Portugal's average salary of €24,818 lags behind Spain and Italy. Explore how the 2026 minimum wage hike and rising housing costs impact Portuguese workers.

By: AXL Media

Published: Apr 11, 2026, 9:53 AM EDT

Source: Information for this report was sourced from Idealista

Portugal’s Position in the European Wage Hierarchy

The average gross annual full-time salary in Portugal reached 24,818 euros in 2024, a figure that highlights the country’s struggle to align with Western European economic standards. Based on data from Eurostat and the OECD, this puts Portugal in the lower half of the continental table, ranking 22nd overall. While the country has seen a 7% growth in wages, surpassing the European Union average growth rate of 5.2%, it remains approximately 15,000 euros below the EU median of 39,800 euros. This gap underscores a persistent economic divide between the Atlantic nation and its more industrialized partners.

The Southern European Salary Cluster

Spain and Italy serve as the most direct points of comparison for Portugal, forming a distinct Southern European economic cluster. However, both neighbors have successfully pulled ahead, with average gross annual salaries recorded at 33,700 euros and 33,523 euros, respectively. The United Kingdom represents an even more significant contrast, with an average full-time salary of roughly 51,657 euros, more than double the Portuguese average. This wage hierarchy suggests that while Portugal maintains a higher standing than many Eastern European states, it remains decoupled from the earning power of major Mediterranean and British markets.

Extreme Wealth Disparities Across the Continent

At the summit of Europe’s salary rankings, Luxembourg continues to lead with an average gross annual salary of approximately 83,000 euros. Other high-performing economies including Iceland, Switzerland, and Denmark all report average annual incomes exceeding 70,000 euros. These figures represent the upper tier of a "wage map" that places Portugal’s 24,818 euros in stark perspective. Meanwhile, Europe’s largest economies, Germany and France, occupy middle-to-high positions with average annual earnings of 53,791 euros and 43,790 euros, respectively, further illustrating the significant distance between Northern and Southern European purchasing power.