Government approval of wage rise
The Portuguese Government has officially announced a national minimum wage increase from 870 euros to 920 euros per month, effective January 2026. The Council of Ministers approved this key decision at a recent meeting in Sintra, and Minister of the Presidency António Leitão Amaro announced it. The 50-euro increase forms a cornerstone of the Government’s income policy, designed to boost worker purchasing power during Portugal’s economic upturn, as detailed in the official government press release.
Economic context
Over the first 18 months of Prime Minister Luís Montenegro’s administration, this adjustment brings the cumulative minimum wage rise to 100 euros, signaling steady progress. The Government frames it within an “unrivalled moment” for Portugal’s economy, enabling wage growth paired with tax relief for households. Crucially, the measure complies fully with the October 2024 income agreement between the Government, workers’ representatives, and employers’ organizations. This tripartite pact highlights a shared commitment to balanced, sustainable wage policies in Portugal’s labor market developments.