Portugal's socio-economic panorama is revealed through data provided by the Organization for Economic Cooperation and Development (OECD), offering a clear view of the different economic classes in the country.
According to the OECD, cited by Executive Digest, those who earn between 75% and 200% of a country's median income belong to the middle class. In Portugal, where the median monthly income is €918, or €11,014 annually (2022 data), being in the middle class means earning between €688 and €1,836 net per month.
The distribution reveals that 60.1% of the Portuguese population is classified as being middle class, while 16.8% have low incomes (between 50% and 75% of the median). The percentage of poor people reaches 12.4%, leaving 10.6% in the high-income category.
These numbers indicate that to join the middle class in Portugal, it is enough to earn €688 net per month. Those who earn more than €1,836 per month are considered part of the upper class, despite this amount being below the minimum wage in some European countries.
On the other hand, anyone who earns less than €688 per month is classified in the lower class in Portugal. These categories reflect the country's economic reality but also raise questions about purchasing power and disparities in relation to other European Union member states.
The comparative analysis reveals that the Portuguese middle class has less purchasing power when compared to their counterparts in the European Union. An annual income of €15,500 places someone in the upper-middle class in Portugal, while in countries like Spain or Italy, it is equivalent to the lower-middle class.
Portugal stands out for having a relatively low percentage of families that identify themselves as belonging to the middle class, with only 32% affirming that they belong. In comparison, in the Netherlands, 82% of the population consider themselves part of the middle stratum.
That doesn't make sense. The minimum wage nationally is €822 so how can a 'middle class' income be around €200 less than that?
By Fitch OConnell from Porto on 21 Jan 2024, 21:36
They must be counting those on part time positions, self employed etc
By Robert from Lisbon on 22 Jan 2024, 13:55
Well it does day 688 nett after tax so perhaps that is the reason for the discrepancy?
By Paul Slezacek from Other on 22 Jan 2024, 18:03
Reading how it is calculated would help: ‘ those who earn between 75% and 200% of a country's median income belong to the middle class.’
By Thibaukt from Porto on 23 Jan 2024, 16:44
Another stat that simply provides cover to government for the abysmally poor wages and working conditions that exist in Portugal.
By Stuart Wood from Algarve on 24 Jan 2024, 11:35
Slave labour comes to mind!
By Dominic Lodola from Algarve on 24 Jan 2024, 16:16
Considering that renting a flat costs about as much as in, say, Munich, you have a perfect recipe for disaster
By Michael from Porto on 27 Jan 2024, 08:17