Why Portugal’s €50 Minimum Wage Increase Fails Workers and the Economy. €50 Is Not a Raise. It Is a Warning.

The Portuguese government’s decision to raise the national minimum wage by €50 per month is being presented as a positive step. For the majority of workers living on minimum income, however, this increase does not represent progress. It highlights how disconnected wage policy has become from the real cost of living in Portugal.

Today, a minimum salary is no longer enough to afford basic necessities. In many cities, it cannot even cover the cost of renting a single room. After rent, utilities, transport, and food, workers are left with no financial margin, no savings, and no stability. Work continues, but dignity is eroded. This is not a sustainable labour model; it is survival under pressure.
Approximately 2.3 million Portuguese citizens currently live abroad, representing one of the highest emigration rates in the world relative to resident population. As of 2025, the majority of this diaspora—roughly 74%—is located within Europe, a shift from previous historical waves toward the Americas and Africa. 

Top Destination Countries by 2024–2025 Trends

According to the Emigration Observatory’s latest reports, recent annual departures (flows) favor neighboring European nations due to freedom of movement and higher wages
Youth Migration: Recent data shows a high proportion of “brain drain,” with roughly 30% of Portuguese citizens aged 15–39 (over 850,000 people) now living outside the country.

A country that cannot retain its own workforce is facing a structural failure.

Immigrants Face Even Harsher Conditions

For immigrant workers, the situation is often worse. Many work full time on minimum wages while:

• Sharing overcrowded accommodation
• Lacking paid holidays
• Receiving no food allowance
• Working long hours with weak labour protection

In this context, a €50 monthly increase has no meaningful impact. It does not improve housing conditions, health, or long-term stability. Immigrants are essential to key sectors of the Portuguese economy, yet they remain among the most economically vulnerable.

At the same time, immigration is frequently used as a political narrative. Symbolic wage increases are promoted as reform, while deeper structural problems—housing, labour enforcement, and wage adequacy—remain unresolved.

Data Confirms the Problem

Recent figures from the Bank of Portugal confirm what workers are already experiencing.

The number of foreign workers arriving in Portugal has fallen by 35%, now averaging around 12,000 arrivals per month. This follows a peak between 2022 and 2023. More importantly, the trend has reversed: departures are rising while arrivals decline.

• Migration balance peaks have nearly halved in two years
• Departures have increased for seven consecutive years
• In 2024 alone, departures rose by nearly 40%
• Since 2022, departures have doubled

This includes skilled, employed, and essential workers.

Portugal relies on immigration to address labour shortages and an aging population. Yet current wage and housing conditions are actively pushing workers away.

The Central Question

How is a worker—Portuguese or immigrant—expected to change their life with €50 more per month when rent and living costs have increased by hundreds of euros?

Conclusion

A minimum wage that does not reflect real living costs is not a social policy; it is a political gesture. Without serious reforms—living wages, affordable housing, and strong labour protections—Portugal will continue to lose both its local and foreign workforce.

People are not asking for charity.
They are asking for fairness, stability, and dignity at work.

Until policy reflects reality, €50 will remain what it truly is: not a solution, but a warning.