Portuguese workers: highly educated, poorly paid
A new Pordata study released for Labour Day highlighted stark disparities in education and pay within the country’s labour market.
Portuguese workers are now, on average, more educated than their employers—yet around 25% earn only the national minimum wage, according to a new Pordata study released for Labour Day (available here in Portuguese).
The report highlights stark disparities in education and pay within the country’s labour market, and Portugal's unique position in the European Union.
Among the 5.1 million workers in Portugal, 34% hold a higher education degree, compared to just 28% of employers.
Portugal stands out in the EU for having the highest proportion of employers with no schooling or only basic education—42%, far above the EU average of 16%.
This puts the country well ahead of Malta (34%), Spain (32%), and Italy (31%) in this category.
Education
Over the past decade, the number of workers with higher education has risen by nearly 700,000, an increase of 61.8% since 2014, when they made up just a quarter of the workforce.
At the same time, the number of foreign workers in Portugal has almost tripled, reaching 302,000, mostly from outside the EU.
Despite these shifts, the average annual salary in Portugal remains the 9th lowest in the EU at €22,293—30% below the average in neighbouring Spain.
Luxembourg tops the salary chart with €81,064, followed by Denmark with €67,604.
A significant portion of Portugal's workforce—22.8%—earns only the minimum wage, which is the 10th lowest among EU countries with a statutory minimum wage, when adjusted for purchasing power.
Women (27.1%), young workers (36.1%), those with only basic education (32.9%), and foreign nationals (38%) are the most likely to be earning minimum wage.
Between 2019 and 2023, nominal wages in Portugal grew by 24%, while housing prices soared by 45%.
Across the EU, these figures were 16% and 23%, respectively, highlighting a growing affordability gap in Portugal.
The study also notes that while small businesses dominate Portugal’s economy numerically, they employ just 44% of the workforce.
In contrast, large companies, which have seen a 14% growth in staff over the past two years, now account for over one million jobs.