Lisbon, Dec. 29, 2025 (Lusa) - The law setting the minimum wage increase to €920 in 2026 was published in the Official Gazette on Monday.
"In implementation of the 2025-2028 Agreement, which reflects the ambition of the 25th Constitutional Government and the social partners to make the country more prosperous, to provide fairer wages, decent working conditions and quality jobs, and continuing the policy of wage appreciation, this decree-law determines the increase in the RMMG [guaranteed minimum monthly wage] to €920.00, with effect from 1 January 2026," reads the decree published today in Diário da República.
The agreement, signed in October last year between the Government, the four business confederations and the General Workers' Union (UGT), revised the national minimum wage upwards, providing for annual increases of €50 so that it reaches €1,020 in 2028.
However, following the general election on 18 May, the government set a new target for the entire legislative term in its government programme, aiming to ensure a minimum wage of €1,100 gross per month in 2029.
The increase in the minimum monthly wage to €920 in 2026 represents a 5.7% increase on the current €870.
On 23 September, following a social consultation meeting, the UGT trade union called for strengthening the agreement currently in force, urging it to rise to €950 next year.
For its part, the General Confederation of Portuguese Workers - National Trade Union (CGTP) advocates raising the minimum wage to €1,050 in 2026.
At that time, the Minister of Labour, Solidarity and Social Security stated that the government "is neither opening nor closing the door" to reviewing the trajectory of the national minimum wage. Still, when the State Budget proposal for 2026 (OE2026) was submitted, it assumed that it would increase to €920 next year, as provided for in the agreement.
The update of the national minimum wage "has a significant impact on multi-year public contracts, in which the wage component indexed to the monthly ensure minimum wage was a determining factor in the formation of the contract price, impacts that may compromise the economic and financial balance of the contract, with negative repercussions on the continuity and quality of the services provided, as is the case with contracts for the procurement of cleaning services, security and human surveillance services, maintenance of buildings, facilities or equipment, and canteen services," the legislation published today also points out.
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