Government rules out immediate minimum wage revision but leaves door open
The Portugal Government has rejected, for now, any revision to the minimum wage agreement that sets the 2027 value at €970, though the Labour Minister Rosário Palma Ramalho acknowledged that any social partner can request the issue be placed on a future agenda. The next meeting of the Social Concertation is scheduled for 21 October.
Speaking after Wednesday's meeting at Palácio da Bolsa in Lisbon, the minister stated clearly: "At this moment, this is not on the table. What is on the table is the agreement to be fulfilled, which has the value already fixed for next year." The current national minimum wage stands at €920 per month.
Unions push for higher values
Trade unions used the meeting to press for increases beyond the agreed figure. The UGT, Portugal's largest trade union confederation, proposed raising the minimum wage to €1,000 in 2027, while the CGTP called for an even bolder jump to €1,100.
The tripartite agreement signed in October 2024 between the Government, four employer confederations, and UGT set out a trajectory of €50 annual increases. Under that deal, the minimum wage would reach €970 in 2027 and €1,020 in 2028.
However, following the legislative elections of 18 May 2025, the Government's own programme set a new target: reaching €1,100 gross per month by 2029.
Ramalho noted that "any partner can request the revision of any agreement" made within the Social Concertation framework, adding that "it is enough for partners to ask for that point to be on the agenda."
Employers reject renegotiation
Business confederations present at the meeting firmly opposed reopening the discussion. Óscar Gaspar, representing the CIP, told journalists there was "no plausible reason" to revisit the deal.
"From the wage side, there is nothing that leads to opening the agreement," Gaspar argued, citing that minimum wage targets had been met and average wage growth had exceeded projections. "Objectively, there is no reason to open negotiations at this moment."
Francisco Calheiros of the CTP noted that "we are not exactly in a time of economic boom," suggesting that the current economic climate, both nationally and internationally, does not support reopening the deal.
Gustavo Paulo Duarte of the CCP said that while the Government could decide by decree to raise the minimum wage beyond what was agreed, "if the economy doesn't work, if we end up worse, if companies cannot respond to the legal requirements imposed, all the backlash of the measures must be attributed to those responsible."
The CAP's Álvaro Mendonça e Moura insisted that "the agreement must be fulfilled" before considering any renegotiation, adding that "each measure has to be seen in its context."
##employers demand tax relief and bureaucracy reduction
Beyond wages, employer confederations used the meeting to press Finance Minister Joaquim Miranda Sarmento on the 2027 State Budget proposals. The CIP called for:
• Reduction of the corporate tax (IRC) burden
• Elimination of autonomous taxation
• Measures to reduce bureaucratic costs
• Tax relief for both companies and families
The CCP requested "a true reduction of the tax burden imposed on the national business fabric, mostly composed of micro, small and medium enterprises."
The CAP specifically asked for fiscal measures to promote employer-provided housing for workers and to support the forestry sector against fires.
Unions seek IRS relief and public investment
Trade unions pushed for measures targeting workers' disposable income. The UGT called for a revision of IRS brackets and parameters, arguing that fiscal policy should "value labour income."
The CGTP demanded "a new fiscal policy, in the opposite direction to what has been pursued, that relieves taxation on the income of those who work." The union also called for stronger public services and warned against investment drops after the Recovery and Resilience Plan cycle ends in 2026.
ECB warns on wage growth and inflation
The European Central Bank provided context to the wage debate, projecting negotiated wage growth of 2.7% in the first quarter of 2027 and 2.8% in the second quarter.
ECB President Christine Lagarde noted that "the improvement in labour productivity also contributed to containing the advance in unit labour costs, which decelerated to 2.6% against 3.5% in the first quarter." The ECB predicts inflation will remain "clearly above target in the first half of 2027" before returning to levels around the 2% objective at the end of 2027.
Public administration workers demand more
Separate from the minimum wage debate, the Federation of Public Administration Unions (Fesap) warned that even a base salary of €1,030 in the public sector would be "insufficient and short."
José Abraão, Fesap's secretary-general, argued that the public administration base salary must "continue to increase, naturally distancing itself from the national minimum wage." He cited inflation potentially exceeding 3% this year, which would mean real-term losses for workers.
Under the current multi-year agreement, the public administration base salary is set to rise from €934.99 to €995.51 in 2027.
Azores union demands regional increase
In the autonomous region, the CGTP-Azores launched a petition demanding a 15% salary increase or a minimum of €150 extra for all workers. Coordinator Rui Teixeira cited "enormous poverty among those who work" and significant wealth inequality.
The union also called for updating the Regional Supplement to the National Minimum Wage from 5% to 10% and the Complementary Remuneration to €100.
Wage transparency directive advances
The meeting also addressed the transposition of the European Directive on wage transparency. Portugal missed the 7 June 2026 deadline, and the European Commission has opened infringement proceedings.
Ramalho confirmed the Government received more than 20 opinions from various entities during public consultation and admitted that "some changes" could be introduced to the initial proposal.
A key point of contention involves when candidates must receive salary information. Unions want it in job advertisements, but employers resist. The Government's draft states that candidates have the right to receive information about "the initial remuneration or its range" before signing a contract.
Companies with fewer than 50 employees would be exempt from providing information on remuneration progression criteria, though unions argue this should be a simplified regime rather than a full exemption.
The proposal must still pass through the Council of Ministers and then the Assembly of the Republic. Ramalho expressed hope the process would not be lengthy, acknowledging that "Portugal is already behind in transposing the European directive."
What this means for Portuguese workers
For minimum wage earners, the current agreement means a guaranteed €50 rise to €970 in January 2027, representing approximately 5.4%. With inflation potentially above 3%, the real increase would be around 2-2.4%.
Those pushing for €1,000 or €1,100 argue that workers face rising costs in housing, food, and energy that outpace current projections. Employers counter that premature increases could harm competitiveness, particularly for small businesses and labor-intensive sectors.
The 21 October Social Concertation meeting could see the wage debate reopen if unions press their case, but the Government's current stance and employer resistance suggest the agreed €970 figure will hold for now.
