Last updated: 28 September 2026 · By Link in Portugal
Your contract shows a gross salary (salário bruto). What reaches your bank account is the net salary (salário líquido). Two deductions make the difference: Social Security and IRS withholding.
The two deductions
- Social Security: 11% of your gross salary, always. Your employer also pays 23.75% on top, but that does not come out of your pay.
- IRS withholding (retenção na fonte): an advance on your annual income tax. The amount depends on your salary, whether you are married, and how many children you have. It is calculated using official tables published every year. To see your own figure, try our free net salary tool.
2026 minimum wage
The national minimum wage in 2026 is €920 gross per month, paid 14 times a year (12 months plus holiday and Christmas pay). At this level there is no IRS withholding, so the net is about €818.80 after 11% Social Security.
Examples for 2026 (mainland, single, no children)
| Gross monthly | Social Security (11%) | IRS withheld (approx.) | Net monthly (approx.) |
|---|---|---|---|
| €920 | €101.20 | €0.00 | €818.80 |
| €1,000 | €110.00 | €36.00 | €854.00 |
| €1,200 | €132.00 | €96.22 | €971.78 |
| €1,500 | €165.00 | €168.17 | €1,166.83 |
| €2,000 | €220.00 | €301.34 | €1,478.66 |
How the withholding is calculated
Since 2023, Portugal uses a formula instead of a fixed percentage: salary × marginal rate − a fixed deduction (parcela a abater). For example, for a salary of €1,200 in 2026: €1,200 × 21.2% − €158.18 = €96.22.
Withholding is only an advance. When you file your annual IRS return, Finanças calculates your real tax. You get a refund if too much was withheld, or pay the difference if too little was.
What else can appear on your payslip
- Meal allowance (subsídio de refeição): not taxed up to €6.15 a day in cash or €10.46 a day on a meal card in 2026. Anything above that is taxed.
- Overtime, night work and shift pay: taxed and subject to Social Security.
- Holiday and Christmas pay: taxed separately, so they do not push your monthly salary into a higher bracket. See our guide.
Are you under 35?
Young workers in their first years of work can benefit from IRS Jovem, which exempts part of their income from IRS and also lowers the monthly withholding. Ask your employer to apply it. See IRS Jovem explained.
Frequently asked questions
Why is my net salary different from my colleague’s with the same gross pay?
The withholding depends on family situation, dependents and IRS Jovem, so two people with the same gross salary can receive different net amounts.
Can I ask my employer to withhold less IRS?
No. The employer must apply the official table. You can, however, ask for a higher rate if you prefer a bigger refund later.
Is the 11% Social Security the same for everyone?
For normal employees, yes. Some special groups have different rates.
Want a professional to check your case?
For advice on your own situation, speak to a certified accountant (contabilista certificado), a lawyer, or the official service. Questions or corrections about this guide? Contact Link in Portugal.
Official sources
- DGERT – Retribuição mínima mensal garantida para 2026
- Despacho n.º 233-A/2026 – IRS withholding tables 2026 (Diário da República)
- maisvalias.com – Tabelas de retenção 2026 (Continente)
- idealista – Meal allowance exempt limits 2026
This guide is general information, checked against official sources on 28 September 2026. Rules and portals in Portugal change often, so confirm the current rules with the official source before you act. It is not legal advice.
Need help with taxes in Portugal?
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