DREM releases data from the 2025 Survey on Income and Living Conditions

The Regional Directorate of Statistics of Madeira (DREM) conducts annually in the Autonomous Region of Madeira (ARM) the Survey on Income and Living Conditions (SILC), a nationwide statistical operation under the responsibility of Statistics Portugal (INE).

This is a harmonised statistical operation, regulated at the European level, whose main purpose is to produce statistics on income distribution, living conditions and social exclusion, enabling analysis of:

• the composition and distribution of household and individual income;
• living conditions (housing and comfort, financial capacity, etc.);
• the impact of social transfers on poverty and social exclusion;
• the connection between poverty and social exclusion and economic activity, employment, socio-family typology, education, health, and housing.

In this context, DREM has released today the results of the survey conducted between April and July 2025, covering a sample of 3 187 households. Indicators related to poverty and economic inequality were constructed on the basis of net annual monetary income for 2024, excluding other sources of income, namely in-kind wages, self-consumption, self-supply, and self-rental, while indicators not dependent on income refer to 2025.

As in the previous year, administrative data from the Personal Income Tax (IRS – Form 3, Annex A) relating to employee income and old‑age pensions from the contributory system were used in order to improve the consistency and quality of information prior to the deduction of taxes and social contributions. In 2025, for the first time, administrative data integration includes IRS data on survivor pensions (IRS – Form 3 – Annex A) and self-employment income under the simplified regime (IRS – Form 3, Annex B), as well as selected administrative data from Social Security (parental benefits, sickness benefits, and social integration income).

At-risk-of-poverty rate in the ARM falls for the third consecutive year and approaches the national average

The at-risk-of-poverty rate (which corresponds to the proportion of the population whose equivalent income is below the poverty line, i.e., 8 679 euros annually, equivalent to 60% of the median net annual monetary income per equivalent adult for Portugal) calculated using the national poverty line was 15.4% in the country in 2024 (down 1.2 percentage points – pp – compared to 2023), while in the ARM it reached 16.6% (-2.5 pp compared to 2023). This is the lowest value in the ARM since the beginning of the time series for this variable (2017) and between 2017 and 2024, the discrepancy between the ARM and Portugal decreased from 10.2 pp to just 1.2 pp.

By NUTS 2 region, the lowest value for this indicator was recorded in Grande Lisboa (12.2%) and the highest in Alentejo (17.9%). These results mark a significant change from previous editions of SILC, in which the Autonomous Regions consistently appeared as those with the highest at-risk-of-poverty rate. In addition to Alentejo (17.9%) and the Autonomous Region of the Azores (ARA) (17.3%), Oeste and Vale do Tejo (17.2%) and Centro (17.0%) also present values higher than the ARM. As such,  the ARM is in an intermediate position in the ranking of at-risk-of-poverty rates calculated using the national poverty line among the 9 NUTS 2 regions.

Only the Centro region (+1.0 pp), Oeste e Vale do Tejo (+1.2 pp) and Alentejo (+2.1 pp) recorded increases compared to 2023. The region with the largest reduction in the poverty risk rate was the ARA (-6.9 pp), followed by Peninsula de Setúbal (-3.0 pp), the ARM (-2.5 pp), and Norte (-2.4 pp).

The at-risk-of-poverty rate may also be calculated based on regional poverty lines, which have the advantage of reflecting different socio-economic conditions, including different levels of living costs. In each NUTS 2 region, the regional poverty line corresponds to the proportion of inhabitants in that region living with those who live on equivalent net monetary incomes of less than 60% of the median of the distribution of equivalent net monetary incomes in that same region.

The regional poverty line increased from 7 240 euros annually in 2023 to 8 469 euros in 2024, corresponding to 60% of the median income per equivalent adult in the Region (12 066 euros in 2023 and 14 115 euros in 2024).

The at-risk poverty rate calculated using the regional poverty line for ARM stood at 15.6%. According to this indicator, Algarve recorded the lowest value (14.3%), followed by Norte (15.0%), Alentejo (15.1%), Centro (15.2%), and the ARM (15.6%). Grande Lisboa (18.1%) and Peninsula de Setúbal (17.6%) show the highest values, followed by Oeste e Vale do Tejo (15.8%) and the ARA with 15.7%.

Severe material and social deprivation rate in the ARM continued its downward trend   

As part of the Europe 2030 strategy, the concept of material and social deprivation was defined for monitoring poverty and social exclusion. Indicators of material and social deprivation are based on a set of thirteen items related to the social and economic needs and durable goods of households. Of the thirteen items of material and social deprivation, seven pertain to the family, and six to the personal level.

The material and social deprivation rate corresponds to the proportion of the population experiencing at least five of the following thirteen difficulties:

- Difficulties at the household level:

1. Lack of capacity to immediately cover an unexpected expense close to the monthly value of the poverty line (without asking for financial help).

2. Lack of capacity to pay for a week of vacation per year, away from home, covering accommodation and travel expenses for all members of the household.

3. Delay, due to economic difficulties, in any regular payments related to rent, credit instalments, or current expenses of the main residence, or other expenses not related to the main residence.

4. Lack of financial capacity to have a meal of meat or fish (or a vegetarian equivalent) at least every 2 days.

5. Lack of financial capacity to keep the house adequately heated.

6. Unavailability of a car (passenger or mixed) due to economic difficulties.

7. Inability to replace used furniture.

- Difficulties at the personal level (16 years or older):

8. Inability to replace used clothing with some new clothing (excluding second-hand clothing).

9. Inability to have two pairs of shoes of suitable size (including one pair of shoes for all weather conditions).

10. Inability to spend a small amount of money on oneself weekly.

11. Inability to participate regularly in a leisure activity.

12. Inability to meet friends/family for a drink/meal at least once a month.

13. Inability to have access to the internet for personal use at home.

For items of material and social deprivation, and for overall deprivation indicators, the household situation is replicated for all its members, regardless of age. For items of deprivation collected at the personal level, children under 16 are considered deprived if at least half of the persons aged 16 or older in the household report being deprived.

In ARM, in 2025, the severe material and social deprivation rate was 5.0%, marking a decrease of 0.4 pp compared to 2024. Nationally, this rate remained unchanged at 4.3%. It is worth noting that the ARM’s value is the lowest in the available series (since 2015). Alentejo (2.4%) recorded the lowest value for this indicator, while the ARA (6.7%) was at the opposite end. In addition to the ARA, Oeste e Vale do Tejo (6.0%) and Grande Lisboa (5.1%) had severe material and social deprivation rates above the ARM. Comparing 2024 with 2025, Oeste e Vale do Tejo was the region where this indicator grew the most (+1.7 pp), while Peninsula de Setúbal (-1.6 pp) and the ARA (-1.5 pp) were the regions where it fell the most.

Very low per capita labour intensity in the ARM increased to 6.2%

Persons under the age of 65 who, during the income reference period, lived in households where the adult population aged 18 to 64 reported working, on average, less than 20% of the possible working time, excluding students aged 18 to 24; retirees and/or pensioners due to old age or disability; and inactive persons aged 60-64 living in households whose main source of income is pensions, are considered to have very low per capita labour intensity.

In 2024, in the ARM, the proportion of the population under 65 living in households with very low work per capita labour intensity was 6.2%, reflecting an increase of 0.6 pp compared to the previous year, thus reversing the downward trend observed in 2022 and 2023, but still ranking as the second-lowest value in the available series since 2017 (5.6% in 2023). The national average was 4.9% (+0.1 pp). By region, the lowest value was recorded in Algarve (3.3%) and the highest in Oeste e Vale do Tejo (7.0%).

Poverty or social exclusion risk rate in the Autonomous Region of Madeira Fell to 20.5% in 2025

The Europe 2030 strategy defines, among other objectives, the reduction of the number of persons at risk of poverty or social exclusion in the European Union by no fewer than 15 million persons by 2030, including at least 5 million children.

The same strategy defines a new indicator for monitoring the population at risk of poverty or social exclusion, which combines conditions of relative poverty, severe material and social deprivation, and very low per capita labour intensity. In accordance with the European convention, the indicator takes as reference the year to which the situation of severe material and social deprivation applies, despite the risk of relative at-risk poverty being the determining element in its trajectory.

In 2025, in the Autonomous Region of Madeira, the at-risk of poverty or social exclusion rate (incomes from 2024) was 20.5%, reflecting a decrease of 2.4 pp compared to 2024, reaching the lowest value since the sample of ICOR has representativity at the regional level. The national average stood at 18.6%, down 1.1 pp from the previous year. The ARA recorded the highest value (21.6%), followed by the ARM (20.5%) and Oeste e Vale do Tejo (20.4%), while Grande Lisboa (16.0%) and Algarve (17.1%) showed the lowest rates and were the only regions below the national average. Compared to 2024, the largest increase occurred in Oeste e Vale do Tejo (+1.3 pp), and the largest decrease in the ARA (-6.8 pp).

Autonomous Region of Madeira shows lower income inequality compared to national average

The Gini coefficient and the S80/S20 ratio allow the assessment of asymmetry in the distribution of incomes in the ARM and in the country, reflecting income differences among all population groups.

The Gini coefficient synthesizes in a single value the asymmetry of the income distribution, taking values between 0 (when all persons have equal income) and 100 (when all income is concentrated in a single individual).  In 2024, regarding the ARM, this indicator stood at 29.5% (-1.6 pp compared to the previous year), the lowest value in the available series and the first time this coefficient fell below 30%. At the national level, the Gini coefficient also decreased by 1.0 pp, from 31.9% in 2023 to 30.9% in 2024, maintaining the situation observed in the previous two years, in which the ARM remained below the national value, that is, with lower income inequality. 

Among the 9 NUTS 2 regions, only Centro (28.7%) and Oeste e Vale do Tejo (29.4%) had a Gini coefficient lower than the ARM, while Peninsula de Setúbal recorded an identical value (29.5%). Grande Lisboa showed the highest inequality (32.9%), followed by the ARA (31.5%), being the only regions with a Gini coefficient above the national value.

Compared to 2023, only Oeste e Vale do Tejo (+0.6 pp) and Alentejo (+0.4 pp) recorded increases in this indicator. Grande Lisboa remained unchanged, while all other regions showed decreases, with the ARA (-2.3 pp) and Peninsula de Setúbal (-1.8 pp) standing out for reductions greater than that observed in the ARM (-1.6 pp).

The S80/S20 ratio, defined as the ratio between the proportion of total income received by the top 20% of the population with the highest incomes and the part of the income earned by the bottom 20% of the lowest incomes, reached 4.6 in 2024 (4.9 in 2023), the lowest value in the available series. In the country, this indicator also decreased, from 5.2 in 2023 to 4.9 in 2024. By region, Centro recorded the lowest ratio (4.3), while Grande Lisboa had the highest (5.4), followed by the ARA (5.0). After Centro, Peninsula de Setúbal, Alentejo, Algarve, and the ARM, all at 4.6, follow, ranking jointly as the second-lowest region for the S80/S20 ratio). Compared to 2023, all regions reduced inequality reflected by this indicator, except Oeste e Vale do Tejo (+0.4) and Alentejo (+0.1), which recorded increases. Despite being the second region with the highest inequality in 2024, ARA registered the largest decrease (-0.9), followed by Peninsula de Setúbal (-0.7).

  

For more information, please click on:

• Time series

Back

• Prev
• Next