Lisbon, Dec. 17, 2025 (Lusa) - The Portuguese government has approved a €50 increase in the national minimum wage in 2026, from €870 to €920 (gross), the cabinet office minister announced on Wednesday after the Cabinet meeting.
At a press conference at the Palácio da Vila in Sintra, António Leitão Amaro said that this is a "significant increase" and that in a year and a half, with PSD/CDS-PP governments, the minimum wage will increase by €100.
"In a year and a half, with Luís Montenegro as prime minister, the minimum wage will rise by €100. It is part of a policy to increase the income of the Portuguese people, supported by a unique moment in the domestic economy," said the minister.
The income agreement that the previous Luís Montenegro (PSD/CDS-PP) government signed with the UGT trade union confederation and employers' organisations in October 2024 provides for the minimum wage to rise at a rate of €50 in each year until 2028.
The projected figures are €920 in 2026, rising to €970 in 2027 and €1,020 in 2028.
Leitão Amaro reminded journalists of the agreement, stating that by approving the minimum wage increase, the Government is "scrupulously complying" with that agreement.
He added that the agreement contains other commitments, such as changes to labour laws.
"[This agreement] has several other commitments, and all of these commitments are mutual conditions. And among these other commitments, we must not forget the reform of labour legislation that this tripartite agreement (between the government, trade unions and employers associations) provided for," he said.
Leitão Amaro addressed the UGT directly, reminding them that they had signed this tripartite agreement and that they must now work in dialogue with the Government to implement it.
"I believe that the UGT will understand and does understand and wants to participate in the implementation of a tripartite agreement that includes a national minimum wage and other aspects, including incentives for wage enhancement, areas of corporate income tax and personal income tax, and also labour law reform. It is good that there is a spirit of construction and dialogue. This government has already proven that it is a government of dialogue with results," said the minister.
Regarding the CGTP's request for a meeting directly with prime minister Luís Montenegro, the cabinet office minister, Leitão Amaro said that the meeting will show whether the trade union will remain "always opposed" or whether it wants "to be part of the solutions and the building of compromises".
The government presented a draft labour reform bill (‘Trabalho XXI’) with more than 100 amendments to the Labour Law, which, according to the trade unions, promotes more precariousness, facilitates dismissals, deregulates working hours and attacks collective bargaining and the right to strike.
In response, the CGTP and UGT union confederations called a general strike last week (11 December), affecting sectors such as transport, schools, hospitals and health centres, as well as private companies such as Volkswagon's Autoeuropa car plant.
Both the UGT and the CGTP claimed that the strike had mass participation - the CGTP claims that three million workers took part - contrary to the government, which, through the voice of the cabinet office minister, António Leitão Amaro, considered the level of participation "insignificant, particularly in the private and social sectors".
On Tuesday, the UGT met with the minister of labour in Lisbon to discuss labour reform. At the end of the meeting with Rosário Palma Ramalho, the UGT's leader, Mário Mourão, said that he saw a spirit of negotiation on the part of the executive and that work would continue over the next month.
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