Here are some of the changes that will take effect next year:
The national minimum wage
The national minimum wage rises by 55 euros, from 705 euros to 760 euros in total. This increase was negotiated in the income agreement signed between the employers’ federations and the General Confederation of Workers (CGTP was not involved), in October.
The government says it wants the minimum wage to reach 900 euros by the end of the legislature (2026).
The minimum wage was established in 1974, one of the first achievements of the April Revolution and then benefited about half of Portuguese workers. In June 2021, according to the Ministry of Labor’s “Guaranteed Minimum Penalty Monthly 2021” report, 24.6% of workers earned the minimum wage.
Civil service salaries
Increasing the salaries of public administration employees by 52 euros, who earn about 2,600 euros per month. Above this salary amount, the increase will be 2% (over €52.
The meal subsidy amount is also updated to €5.20 (it has already been paid in this amount since October).
There are about 740,000 civil servants.
private sector wages
The government does not regulate private sector wages, except for the minimum wage (set at 760 euros in 2023).
In the income agreement signed between the social partners, a wage increase of 5.1% in 2023 was agreed upon. However, wage increases for workers earning above the minimum wage depend on company decisions or collective agreements, so they vary by case. Issue.
The government has said it aims to raise the weight of the reward to at least 48.3% of GDP in 2026, bringing it close to the European average.
annuities
Annuities will increase between 4.83% and 3.89% depending on their value.
The Social Support Index (IAS) rose 8.4% to €480.43.
With this update, annuities up to €960 (two IAS) increased by 4.83% and annuities between €960 and six IAS increased by 4.49%. Annuities greater than six IPSAS increased by 3.89%.
A pensioner with a pension whose current value is 440 euros will receive from January 461.25 euros. A pension of 500 euros would have an increase of about 24 euros. Already a pension of 1,300 euros rose in January to 1,358.37 euros.
The pension update is less than what would result from the formula provided by the law – which takes into account average inflation without a known home on November 30 and GDP growth -, having been supplemented by the incremental value. Paid the equivalent of half board which was already provided in October. This decision by the government was controversial and highly criticized.
redesigning
The legal retirement age is 66 years and four months (three months lower than in 2021).
In 2023, requesting early retirement has a lower penalty: the sustainability factor is 0.8617, which means a reduction of 13.8%. This penalty applies to pensions that begin to be paid before the statutory retirement age, with exceptions provided by law. These pensions are also subject to a reduction of 0.5% for each month of the advance payment, in relation to the statutory retirement age.
