President: Growth More Important Than Highest Minimum Wage

President: Growth More Important Than Highest Minimum Wage

During their 2025 election campaign, the PSD promised a €1,200 minimum wage. Now, after the local elections, the president suggests the minimum wage could end up being even lower than in other parts of Portugal.

President Albuquerque Says Economic Growth Takes Priority Over Lead in Minimum Wage

Few days after the elections, Madeira’s regional president Miguel Albuquerque said he cannot promise that the island will continue to have the highest minimum wage in Portugal. Speaking at the opening of the exhibition À Escala – Desporto Automóvel at the Museu de Electricidade – Casa da Luz in Funchal, Albuquerque stated that the focus should be on long-term economic growth.

I cannot guarantee, at this moment, that Madeira will continue to have the highest minimum wage in the country, but I guarantee that wages will continue to be updated. The goal should not only be the minimum wage - it should be economic growth and its effect on total wages.

Miguel Albuquerque, Diário de Notícias Madeira

Current Minimum Wages Throughout Portugal in 2025

  1. Madeira: €915/month

  2. Azores: €910/month

  3. Mainland Portugal: €870/month

Madeira Currently Holds the Highest Minimum Wage in Portugal but May Change Policy in 2026

Madeira has so far maintained the highest minimum wage among Portugal’s regions, as people generally have higher expenses than on the mainland. Food and accomodation is more expensive in general. The next review of the regional minimum wage is expected in early 2026, in coordination with national decisions.

On the PSD's Facebook page on March 19, on the eve of the election, what was already on the banners in the streets was announced. "In this final stretch of the campaign, we reiterate another of our great commitments for the future: to ensure that Regional Minimum Wage – which thanks to the PSD/Madeira Governments is already, currently the highest in the country – reach €1,200

Diário de Notícias Madeira

Government Claims, Madeiran Workers Have Sufficient Financial Benefits

According to Miguel Albuquerque, the region’s reduced tax burden already provides significant financial benefits for workers. He said that, because of lower regional taxes, an average worker in Madeira ends the year with the equivalent of one more salary than a worker on the mainland.

This tax advantage, the government claims, helps offset possible differences in the minimum wage compared with other parts of Portugal.

Which, broken down, is an utterly unsubstantiated claim, considering a consistently higher inflation in Madeira and higher prices for groceries, rent and transportation than on the mainland or the Azores.

Unfortunately, Madeiran media are not challenging this and yet again stick to mere reporting without providing context.

Evolution of Madeira’s Minimum Wage Since 2015

Year

Minimum Salary

Annual Increase

Increase in %

2015

€515

-

-

2016

€540

+ €35

4.85%

2017

€570

+ €30

5.55%

2018

€592

+ €22

3.85%

2019

€615

+ €23

3.88%

2020

€650

+ €35

5.69%

2021

€682

+ €32

4.92%

2022

€723

+ €41

6.01%

2023

€785

+ €62

8.57%

2024

€850

+ €65

8.28%

2025

€915

+ €65

7.65%

Source: Diário de Notícias Madeira

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