What is the hourly labor cost in Portugal compared to the rest of Europe?
- Portugal Business News - Valerie Charoux
- Sep 30, 2024
- 2 min read
Updated: Mar 18, 2025
What is the hourly wage in Portugal?
Portugal news – Here is the hourly labor cost in Portugal compared to the rest of Europe, as well as the average net annual earnings in Portugal compared to the rest of Europe, according to Eurostat data for 2023.
In 2023, the average hourly labor cost was 31.8 euros in the EU, ranging from 9.3 euros in Bulgaria to €53.9 in Luxembourg.
What is the hourly wage in Portugal?
The hourly wage in Portugal was well below the EU average at 17 euros, while it was at 24.6 euros in neighboring Spain.
From the point of view of businesses, the average hourly labor cost includes not only the wages and salaries paid to employees but also non-wage costs, mainly social contributions payable by the employer. The Eurostat study measures the hourly labor cost for enterprises of 10 or more employees excluding in the following sectors: agriculture, forestry and fishing, public administration, defence and compulsory social security.
What is the average net annual earnings in Portugal compared to the rest of Europe?
In 2023, the average net annual earnings of a single worker without children were 28,217 euros in the EU, ranging from 9,355 euros in Bulgaria to 49,035 euros in Luxembourg.
In Portugal, the average net annual earnings of a single worker without children were well below the EU average at 16,943 euros, while it was at 23,568 euros in neighboring Spain.
Average annual net earnings are calculated by subtracting income taxes and social security contributions from gross annual earnings and then adding family allowances.
