Portugal’s average monthly pay rises to €1,696

Portugal’s average gross monthly pay rose 4.9% year on year to €1,696 in the third quarter of 2026, according to data published by the National Statistics Institute (INE), with inflation cutting the real increase to 1.5%. The figures matter for employers, workers and policymakers because they show wage growth is continuing, but at a slower pace in nominal terms and with more limited gains in purchasing power.

INE said the average total gross monthly remuneration per worker reached €1,696 in the quarter to September, down from a 5.4% annual increase in the previous quarter. The regular pay component, which excludes items such as holiday and Christmas allowances, rose 5.1% to €1,434, while base pay increased 5.2% to €1,342. In real terms, both the regular and base components rose 1.8%.

The data also showed wide sector gaps. In September 2026, average gross total pay ranged from €1,199 in accommodation and food services to €3,076 in electricity, gas, steam and air conditioning supply. Agriculture, forestry and fishing posted the biggest annual increase in total pay at 7.7%, followed by construction at 6.9%, while electricity and gas recorded the smallest rise at 1.2%.

Public sector pay remained above private sector levels. In public administration, average total remuneration rose 4.1% year on year to €2,186 in the third quarter, compared with a 5.1% increase to €1,605 in the private sector. In real terms, pay rose 0.9% in the state sector and 1.8% in the private sector.

Separate INE data showed labour costs for companies also continued to rise. The labour cost index increased 5.3% year on year in the third quarter, after a 5.6% rise in the previous quarter, with wage and other costs per hour worked both up 5.3%.

Originally published at Eco.pt