The Portuguese government has approved an increase in the national minimum wage to €920 (gross) in 2026, up from €870, the Minister of Presidency, António Leitão Amaro, announced after this Wednesday’s Council of Ministers meeting.
Speaking at a press conference at the Vila Palace in Sintra, Leitão Amaro said it was a “significant” rise, noting that in just a year and a half under governments led by PSD/CDS-PP and Prime Minister Luís Montenegro, the minimum wage will have increased by €100.
“This is part of a policy to increase Portuguese incomes, supported by a unique moment in the national economy,” the minister said.
According to an agreement on income policy signed between the first government of Luís Montenegro, the UGT trade union, and business associations, the minimum wage is set to increase by €50 each year until 2028.
But where does this leave Montenegro’s surprise announcement of a €1,600 minimum wage target?
Earlier this month, just days before a general strike, Prime Minister Montenegro raised expectations with ambitious wage targets for both minimum and average salaries. He initially mentioned raising the minimum wage to €1,500 and the average wage to €2,000–€2,500. A day later, he clarified that he did not want the average wage to reach €1,600–€1,700 immediately, but rather €2,500–€3,000 over time, potentially through changes in labour laws.
After the general strike, which drew contrasting estimates of attendance, Finance Minister António Costa Silva stated that the €1,600 minimum wage was “an ambition, not a promise.” When asked about a timeline, he declined to speculate, saying it would depend on many variables.
Prime Minister Montenegro addressed the topic again at the PSD parliamentary group Christmas dinner, reiterating his commitment to raising the minimum wage in the coming years and denying that the announcement was intended to dissuade participation in the strike.
