The Government approved this Wednesday, 17 December, a €50 increase in the national minimum wage for 2026, raising it from €870 to €920 gross, the Minister of the Presidency announced after a Cabinet meeting.
Speaking at a press conference at the Palácio da Vila in Sintra, António Leitão Amaro described the rise as “significant”, noting that over a year and a half under PSD/CDS-PP governments the minimum wage will have increased by €100.
“In a year and a half, with Luís Montenegro as prime minister, the minimum wage rose by €100. This is part of a policy to increase Portuguese incomes, underpinned by an exceptional moment for the national economy,” the minister said.
Under the income agreement signed by the government led by Montenegro (PSD/CDS-PP) with the UGT (General Union of Workers) trade union confederation and employers’ organisations, the minimum wage is set to rise by €50 each year until 2028.
The figures set out in the agreement point to a minimum wage of €920 in 2026, rising to €970 in 2027 and €1,020 in 2028.
Addressing journalists, Leitão Amaro recalled the agreement, stressing that by approving the increase the Government was ensuring the “scrupulous fulfilment” of what had been agreed.
He added that the deal also includes other commitments, namely changes to labour legislation.
“That agreement contains several other commitments, and all of them are mutual conditions. Among those other commitments, it must not be forgotten, there is the reform of labour law that the tripartite agreement envisaged,” he said.
Leitão Amaro addressed the trade union federation directly, recalling that it had signed the tripartite agreement and should now work in dialogue with the Government to implement it.
“I believe the UGT understands this, understands it well and wants to take part in delivering a tripartite agreement that includes the national minimum wage as well as other dimensions, including incentives for wage progression, issues related to corporate tax, and also labour law reform. It is important to have a constructive spirit and dialogue. This Government has already shown that it is a government of dialogue, with results,” he said.
Asked about the CGTP’s (General Confederation of Portuguese Workers) request for a meeting directly with the prime minister, Luís Montenegro, Leitão Amaro said that the meeting would show whether this other trade union confederation would continue to be “permanently opposed” or whether it would choose to “be part of the solutions and the building of compromises”.
In early December, just days before a large general strike which brought the country to a halt, PM Luís Montenegro raised expectations by twice announcing wage targets that are well above current realities.
Initially, the prime minister spoke of raising the minimum wage to €1,500 and the average wage to between €2,000 and €2,500. A day later, he said he did not want “the average wage to reach €1,600 or €1,700”, but rather “to reach €2,500, €2,800 or €3,000”. According to the head of government, such increases could be achieved through changes to labour legislation.
After the general strike, which sparked a war of numbers, with the Government describing the movement as “inexpressive” and trade unions claiming millions had taken to the streets, the Minister of Finance said that a €1,600 minimum wage was “an ambition, not a promise”.
Asked when such a level might be reached, the minister refused to “speculate”. “It would depend on many variables,” he said, without setting any timeframe.
On Tuesday, the prime minister returned to the issue and pledged to reach the target of raising the minimum wage in the coming years. Speaking at the PSD parliamentary group’s Christmas dinner, Luís Montenegro denied having used the measure in an attempt to dissuade the general strike.
All in all, Portugal’s minimum wage remains firmly in the middle of the European Union table, highlighting a gap between political ambition and economic reality. Even now set at €920 per month, paid over 14 months, the minimum wage is higher than that of several Eastern European countries, but well below levels seen in much of Western Europe, despite economic growth in recent years. Portugal only drops further down the scale when adjusted for purchasing power, and set against rising living costs.
Source: LUSA
