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Economy · Funchal · 13 August 2026

Madeira's Labour Costs Increase by 5.6% in Q2 2026

Madeira's Labour Cost Index rose 5.6% in the second quarter of 2026, exceeding the national average.

Madeira's Labour Costs Increase by 5.6% in Q2 2026

The Labour Cost Index (LCI) in the Autonomous Region of Madeira saw a 5.6% increase in the second quarter of 2026, compared to the same period last year. The data was released by the Regional Directorate of Statistics of Madeira (DREM).

The variation, adjusted for working days, was due to identical increases in the two main components of the index. Wage costs per hour effectively worked grew by 5.6%, while non-wage costs also rose by 5.6%.

The rise in labour costs in Madeira was driven by a combination of increased average costs per worker and a reduction in the number of hours effectively worked. Nationally, the LCI increased by 5.4% in the same period, placing Madeira 0.2 percentage points above the average.

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