Portugal records lowest wage inequality in Eurozone, minimum wage close to median

A June economic bulletin from the Banco de Portugal shows Portugal now has one of the lowest levels of wage inequality in the euro area, with a 10‑percent‑to‑90‑percent ratio of 2.4, matching Finland, the Netherlands, Spain and Italy.

The report notes the minimum wage is only €88.5 below the median wage, raising the Kaitz index from 87 % in 2019 to 91 % in 2025; the minimum rose 6.1 % to €870 in 2025 while the median reached €958.8. Average nominal wages have risen about 5–6 % annually in recent years. The central bank warns that the tight compression around the minimum wage could reduce work incentives and affect productivity.