Fixed Contractual Pay Shows Real-Term Gains
Base salaries in Madeira increased by 4.8% in the second quarter of 2025 compared with the same period last year, reaching €1,268, according to provisional data from the Regional Directorate of Statistics of Madeira (DREM).
When adjusted for inflation using the regional Consumer Price Index (CPI), base salaries rose 1.5% in real terms. DREM’s figures indicate that - in theory - this growth reflects an improvement in purchasing power.
Gross Total Monthly Wage Reaches €1,676, While The Regular Pay Stands at €1,318
Regular pay, which includes base salary plus fixed monthly allowances, stood at €1,318, up 4.9% from the previous year. The gross total monthly wage, which also includes overtime, bonuses, and other irregular payments, reached €1,676, a 5.5% increase compared with the second quarter of 2024.
The report covers 109,100 jobs, 3.0% more than in the same quarter of 2024. These positions include employees registered with Social Security and members of the public pension scheme in entities based in Madeira.
Madeira / Portugal | Value (€) | Variation vs. Q2 2024 (%) |
Total Wage (PT) | 1,741 | +6.0% |
Total Wage (RAM) | 1,676 | +5.5% |
Regular Salary (PT) | 1,368 | +5.7% |
Regular Salary (RAM) | 1,318 | +4.9% |
Base Salary (PT) | 1,281 | +5.7% |
Base Salary(RAM) | 1,268 | +4.8% |
Difference Between Base Salary, Regular Salary & Gross Monthly Wage
Base salary → just the contractual fixed salary.
Regular salary → base pay plus fixed monthly allowances (like meal or transport subsidies).
Gross total monthly wage (average monthly wage) → regular pay plus all other earnings, including:
Overtime
Performance bonuses
Commissions
Holiday or Christmas subsidies if paid monthly rather than annually
Any other irregular payments received in that month
Because gross total monthly pay counts those extra, sometimes irregular amounts, it will almost always be higher than regular pay.
Sectoral Differences in Wage Growth
While base salaries rose across most sectors, the largest overall pay increases were seen in “Financial and insurance activities” (+9.9%) and “Manufacturing” (+9.7%). Other notable gains were recorded in companies with 10 to 19 employees (+8.3%), the public sector (+5.9%), the tradable sector (+7.1%), “Knowledge-intensive financial services” (+9.9%), and “Low technology industrial” companies (+9.8%).
DREM’s report highlights that the base salary component is more stable across months, while gross wages can fluctuate due to seasonal or irregular payments.
Madeira’s Gross Total Monthly Wage Remained €65 Below the National Average of €1,741
Despite the rise, Madeira’s gross total monthly wage remained €65 below the national average of €1,741 in the second quarter of 2025. Across Portugal, nominal wages grew 6.0% year-on-year, from €1,643 in June 2024, with real-term growth of 3.7%.
Source: DREM
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