Slim Wage Offer in 2026 Budget Spurs 24 October Public-Sector Strike

Portugal’s main coalition of public-sector unions says the Government’s draft 2026 State Budget leaves civil servants with another year of shrinking purchasing power. With negotiations stalled and inflation still eating into wages, the Frente Comum confirmed on Monday that the planned 24 October general strike will go ahead — and, in its words, "with renewed energy".

Why the Budget Became a Flash-Point

The document delivered to Parliament last week earmarks a 2 % across-the-board pay rise and a €52 monthly bump to the lowest salary bracket, measures the Finance Ministry describes as “responsible in the current macroeconomic context.” Union leaders counter that prices have climbed almost 12 % since 2022 and that public workers have recovered “barely a fraction” of the loss. They want either a 7 % hike or a minimum €100 raise for every employee, plus a commitment to index future adjustments to inflation.

Government Holds Its Line — For Now

Prime Minister Mariana Vieira da Silva told reporters in Brussels that the Budget “balances social needs with fiscal prudence” and warned that bigger wage concessions could jeopardise the objective of bringing the deficit below 1 % of GDP. Finance Minister António Nunes, facing his first major labour dispute since taking office in April, said the Executive is willing to “fine-tune” some figures but will not abandon the deficit target. No new bargaining session has been scheduled.

What a 24 October Walkout Could Mean for Daily Life

Frente Comum represents roughly 400 000 employees in central administration, municipalities, schools and hospitals. If turnout mirrors the 2022 public-sector strike, commuters can expect limited metro and suburban rail services, parents may find dozens of public schools closed, and elective surgeries could be rescheduled despite minimum-service rules in emergency departments. The Interior Ministry has already asked district governors to draft contingency plans, and CP – Comboios de Portugal said it will announce a provisional timetable “as soon as the strike notice is formally delivered.”

The Broader Economic Backdrop

Portugal’s GDP expanded 1.9 % in the first half of 2025, outperforming the euro-area average, yet wages lagged: the National Statistics Institute puts median nominal growth at 3.1 % versus consumer-price inflation of 4 %. Public debt remains high at 104 % of GDP, a key reason ratings agencies have praised Lisbon’s commitment to primary surpluses. That fiscal straight-jacket, critics argue, is now colliding with growing social pressure to reverse a decade of austerity-era pay freezes.

Opposition Sees Political Opportunity

The centre-right PSD says the draft Budget shows the Socialist minority is “out of touch with ordinary workers,” while the far-left Bloco de Esquerda accuses the Government of hiding behind EU fiscal rules. Both parties have hinted they could back amendments that raise the public-sector wage envelope by at least €600 M, though neither commands the votes to pass changes without Socialist defections.

What Happens Next?

Parliament begins clause-by-clause debate on 21 October, three days before the strike. If the Government cannot secure enough support, it could be forced to negotiate late-night compromises or risk seeing the Budget rejected — an outcome that would raise the spectre of snap elections early in 2026. For now, union leaders say the strike remains the most potent lever they have: “When the country realises what shuts down on 24 October, it will understand why we keep insisting that fair wages are not a luxury but a prerequisite for decent public services,” Frente Comum coordinator Sebastião Santana told a packed news conference in Lisbon.

Reporting from Lisbon, with additional information from Brussels and Porto.