The catering and hospitality sectors in Portugal have agreed an average wage increase of around 5% for 2026, following the revision of collective labour agreements signed with the Service Sector Workers’ Union (SITESE).
The agreement was reached on December 22, 2025, in Lisbon, between the Portuguese Hotel Association (AHP) and SITESE, covering workers in the restaurant and hotel sectors.
Negotiations sought to balance improved pay and working conditions with the sustainability of businesses, at a time marked by international uncertainty, rising operating costs and ongoing labour shortages across the sector.
Under the revised agreements, wages will rise by more than 5% on average, with the increase taking effect from January 1, 2026, maintaining the annual pay update mechanism.
The revision also includes adjustments to structural aspects of the collective agreements, reflecting the growing complexity of organisations and the range of roles within companies.
The agreements will enter into force once published in the Labour and Employment Bulletin. Both parties have already requested publication of the revised agreements and the issuance of an Extension Ordinance, which would apply the new conditions to workers and employers not affiliated with other unions or employers’ associations.
In a statement issued on December 23, 2025, the Portuguese Hotel Association said the agreement reflects “labour stability, social responsibility and negotiating maturity”, which it considers essential to the “competitiveness and attractiveness of Portugal’s restaurant and hospitality sectors”.
