The average gross monthly remuneration rose 5.6% in 2025 to €1,694, an increase of €39 and 0.9 percentage points above the targets in the Tripartite Agreement on Salary Enhancement and Economic Growth 2025-2028, Diário de Notícias reports. The government says wages have risen 'above expectations' but productivity per hour remains weak — about 28% below the EU average — a point underlined by CNN Portugal. Workers and employers should watch how wage growth and low productivity affect hiring, prices and competitiveness.
Average pay reaches €1,694 but productivity lags
Sunday, 22 February 2026AI summary
Context & Explainers
The Tripartite Agreement on Salary Enhancement and Economic Growth 2025–2028 is a three‑party pact between the government, employers and trade unions that sets numerical targets for wage increases and economic growth over 2025–2028. The Ministry used those targets to judge performance — for example, average gross monthly pay reached €1,694 in 2025, about 0.9 percentage points above the agreement's target.
Portugal's productivity per hour worked is below the EU average; around 2022 Portugal was roughly 70–75% of the EU27 average for GDP per hour worked, while Germany was about 120–125%, France about 105–110% and the UK about 110–115%. That gap helps explain why Portugal's average wages (€1,694 gross monthly in 2025) remain lower than in many Western European countries.
