When it's time to make the decision to come to live and work in Portugal, topics such as real wages and purchasing power come back regularly. Calculating net take-home pay in Portugal is a different exercise than in other countries and it is important to know it in advance in order to live serenely. If you are planning to come to work in Portugal then this article is for you. What is the average salary in Lisbon and other cities? How to calculate the net salary from gross in Portugal? Bob, the Expats Personal Assistant in Lisbon and Portugal tells you everything.
Salaries in Portugal and Lisbon
Portugal is one of the member countries of the Euro zone with one of the lowest minimum wages. Since 1 January 2018 the amount of this is 580 euros gross (for 40 hours worked and 14 months). In 2017, the average salary in Portugal was 846 euros net, with great disparities in different regions. Obviously Lisbon is the one with the highest average salary (1124 euros) while regions like Chaves will have an average salary of 680 euros.
Calculation of the net salary from gross in Portugal
If you have not made the decision yet to live in Portugal then it may be worth pointing out some peculiarities of the Portuguese workplace. The salary is paid over 14 months, with a double salary approximately in June and November. This is the subsidios of Ferias and Natal. Then taxes are levied directly on the salary.
These details are important because some companies offer a salary in which mixes gross salary, 14th month and meal allowance. Bob advises you during your interviews to ask to receive a clear and precise proposal including the gross salary and the daily amount of the meal allowance. Do you have this information? Super you will be able to calculate your net salary from gross in Portugal.
There are several simple and effective simulators to calculate your net salary from the information requested previously. We will use for example that of Contasco Connosco that you can find by clicking here.
Here is the information you need to know when calculating your net salary in Portugal:
- Ordenado Bruto: it's your gross monthly salary
- Residencia Fiscal: Unless you work on a Portuguese island you are subject to the "Continente" regime
- Regime: Geral is the norm unless you have a recognized disability
- Estado Civil: Não casado if you are single, or married 1 holder or 2 holders
- Number of dependents: Number of dependents. If you are single it will be 0.
- Tipo do subsídio de refeição: Remuneração if it is paid directly on your salary or Cartão de Refeição if it is in ticket restaurant
- Valor do subsídio de refeição (total for all): indicate the monthly amount of your refeição subsidio. If you know the daily amount then multiply it by 22
- Subsídio em Duodécimos: normally the spread of the 13th and 14th months is no longer possible in 2018 for new contracts, so you have to indicate no
Click on Calcular, and you will have an amount that includes the net salary you will receive on your account (meal allowance is included in this amount)
There you go ! To make the decision to live and work in Portugal it is important to know in advance your net salary. Bob reminds you to pay attention to recruitment agencies or too insistent hiring companies. Their goal is not to find you a job but to earn their own bonuses.
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