In the second quarter of the year, the average net salary rose 7.3%, to €1,264, compared to the same period last year, when the average salary, net of taxes and social contributions, was €1,178. This is a more modest increase of €86 compared to the previous three months, when the increase had been almost 10%, or €108, according to ECO calculations based on new data published by the National Statistics Institute (INE), along with employment statistics for the period between April and June 2025.
In real terms, after discounting the impact of the 2.4% average inflation rate recorded in June over the last 12 months, growth was lower but still significant: 7.1%, or 83.94 euros. This means that 2.06 euros of the 86-euro nominal increase was “eaten up” by rising prices. Subtracting the cost-of-living impact, the average net salary rose to 1,261.94 euros.
For politicians, managers, and directors, the average net salary exceeded €2,000 for the first time, reaching €2,060, net of withholding taxes for personal income tax and social security contributions. This increase is directly related to the end of the 5% salary cut at the beginning of the year. The penalty for political office holders and public managers had been in place since the Troika era and was eliminated by a proposal from the PSD and CDS, approved as part of the 2025 State Budget (OE2025).
The gap between the highest salaries of legislative representatives, managers, and directors and the lowest salaries of unskilled workers is widening: it rose from €1,189 to €1.67 year-on-year. In the second quarter, executives earned €2,060, while the lowest-paid workers received only €793 net at the end of the month.