en 
This results as follows with 14 monthly salaries with 11 months of work. This means you pay Christmas bonus (one salary), holiday pay (one salary) and holidays of 24 days a year. That's why I always say: 11 months of work and 14 months of salary. But you also have to be honest with an average salary of 1000 euros per month and thus an annual salary net of 14,000 euros, you can't complain about it as an employer. Nevertheless, there is still a catch that you do not see at first glance and that is the additional costs such as:
+ Social security 23.75 % = 3,325 euros per year
+ Meal allowance per day of 4.77 Euro times 22 days a month = 104.94, multiplied by 11 months is 1.154,34 Euro
+ Occupational safety 140 Euro per year
+ Hygiene and safety at the workplace another 100 euros per year
+ a training fee of 350 euros per year.
As a result, an average worker in Portugal costs me 19,069.34 euros in the year and thus 1,589.11 euros per month.
If I now illuminate the German average wage situation in comparison, I come to the following figures: With a net average wage of 2,265 euros per month, I usually have a gross wage of 3,352 euros, with which the 21% employer social benefits are added. In this case, this would mean another 703.92 euros on the gross salary. Thus, the employer in Germany spends total costs per month for an average employee of 4,055.92 euros. At 12 months, this is 48,671.04 euros. This raises the question again: Where is it better to work and live with a lower salary and more complicated payroll in Portugal or better with twice the salary, higher cost of living and climate in Germany? Now I can think of only one thing: "Some call it a disadvantage, others simply call it: "That's part of it!"
But where I want to go with it all is that although Portugal is beautiful in terms of the weather and the people, you must not be under the illusion that it is easy to live and work here. Nevertheless, it is still one of the countries in Europe where you can make a difference if you are used to being a "doer" and do not indulge in the idea that you are now the savior and no one "can hold a candle". Because then the trip and the stay in Portugal will be very short, because we have already seen many of them come and go here. It is also important for all those who make the decision to come to Portugal to live here, that you inform yourself in advance how everything works, because the bureaucracy has had its headquarters here for a long time and does not always work like clockwork. But there are many technical tools such as apps and portals with which you can do a lot from home. Of course, if you know how it works and of course you can speak the Portuguese language.
Because when I go to a German tax official in Hamburg, I also know that I cannot speak English with him, because English is not the official language. But - and most people forget this - when you are at the Office: the legal responsibility of a civil servant to the legislator when he processes legal directives and applications and does so in a foreign language and not the official language. The same applies in Portugal, but here we usually have one or the other official who agrees to explain things in English. But here, too, you have to be able to understand and speak the English language and not go to an office with broken English, but possibly have an interpreter with you.
It was important to me to shed light on the matter from this side, because all too often I see in German forums on social networks how people complain that it always takes so long at the offices in Portugal and that nobody speaks German. We are actually very dependent on tourism in Portugal but the official language is Portuguese, but as I said, there are many Portuguese who speak German and who are always helpful. It only takes an "Obrigado" or "Obrigada" and then you have already conjured up a smile.
Paulo Lopes is a multi-talent Portuguese citizen who made his Master of Economics in Switzerland and studied law at Lusófona in Lisbon - CEO of Casaiberia in Lisbon and Algarve.
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A very Portuguese article. I see no attempt to answer the question posed in the title as to why wages are so low and taxes so high.
By Paul Adams from Other on 13 Nov 2023, 08:52
If you bring that 3352€ month salary here at Portugal and work as "sole trader" (for that German company), you need to pay (from it) VAT, social security and income taxes. What is left is 46,96 %. This "a bit over 53% for taxes" is quit high. And if your "gross salary" is higher (like IT consults normally have), this amount drops to 32%. How "happily" you bring your business here to Portugal?
By Jussi J from Other on 13 Nov 2023, 12:21
The whole article could have been summed up in one word: Socialism.
Also, this idea of 14 salaries for 11 months of work is an absolute con.
These are not bonuses, this is a yearly salary divided by 14 months instead of 12.
Why is it like this?
I'm not sure, but I guess that it benefits employers when employees resign.
Once again, I think it might have a component of the Socialist mentality, which imposes rules on the majority for the benefit of a small minority who don't manage their finances.
Anyway, we know our government is corrupt and I hope we elect new leaders who remember that they lead us only because we consent to a social contract.
We do not owe them our hard-earned € which they repeatedly squander on vanity projects, they owe us fiscal responsibility.
By Quentin Ferreira from Lisbon on 13 Nov 2023, 13:56
The answer is quite simple. Demographics and political leaning.
Portugal is and always has been a state run country. The people like it that way.
This coupled with the fact that the population has been shrinking very quickly in terms of worker population, there are many “old people” in Portugal and not enough workers beca they migrate, and even the ones who come and stay here will soon leave taking with them wealth…portuguese wealth. We are doomed as a nation, then it’s quite simple to understand. Not enough workers, not enough taxes for pensions, healthcare, security forces, administration…basically EVERYTHING thats state run. Therefor there are only two solutions.
We either vote for a party who demands privatisation of almost everything leaving very little government expenditure.
Or
We keep voting on a party that prioritizes state run affairs BUT we make it number One priority to increase birthrates by focusing solely on family friendly policies ignoring everything else for a decade or very possibly 20 years until the effects of the birthrates are felt.
Once the working population doubles that of the old people receiving pensions… thats already the nowadays taxe cut by half. As long as there are more working people then those receiving pensions by far, people who work will feel a lot less the strain of taxes on them. There are of course a few exceptions but generally speaking this is the most agressive but also the most friendly solution on the long term.
By Ivan da Silva Matias from Lisbon on 13 Nov 2023, 14:02
The answer to this articles' question is simple. Its called socialism.
By Tony B from USA on 13 Nov 2023, 18:35
Maybe the taxes are high and wages low due to inept and corrupt socialist government, ineffective and outdated work ethics, very poor customer service and infrastructure which has made Portugal dependant on EU funding. Added to the fact that house prices are high due to large amounts of foreign investors out pricing local people and property developers not providing any social housing.
By david from Algarve on 13 Nov 2023, 20:28
Ok, portuguese salaries are low not because the big majority of the population is undereducated, productivity is low and the government is corrupted? Actually, the author is right, the problem is the mentality - transportation is not working, people say that's part of it, hospitals are overcrowded and doctors are underpaid, that's part of it, school teachers are permanently on strike (not sure when they teach), that's part of it, etc. Portugal is receiving European structure funds for more than 40 years and portuguese quality of life is still very bad. So instead of comparing Portugal with well developed countries like Germany, it's better you compare it with similarly developed countries like Marocco.
By V.P. from Lisbon on 13 Nov 2023, 21:42
24 days public/bank holidays my foot. most portugues public holidays are religious based so tied to a specific date which either falls over the weekend (and so is irrelevant as not at work anyway) or equally frustratingly is in the midweek so about as much use as a wet rag. Why oh why can't some bright spark decree that public holidays be only on a Friday or Monday then at least your poor underpaid overworked staff get half a chance of a rest?
By David from Beiras on 14 Nov 2023, 11:35