“Payments for already approved requests will continue, as announced yesterday (Monday) by the Tax Authority. However, in new requests, graduates will have to choose between the salary bonus and the IRS Jovem,” stated today the Minister of Education, Science and Innovation.
The salary bonus for qualification appreciation, essentially a repayment of tuition fees aimed at young people up to 35 years old residing and working in Portugal, was approved by the government led by António Costa in 2023 and included in the State Budget for 2024.
The State Budget for 2025 made no mention of this mechanism, and for several months, the Government’s portal, where requests are submitted, has noted that “new requests are not being accepted” and that “the deadline for submitting requests in 2025 has not yet been announced,” raising doubts about the measure’s continuity.
In February, the Minister of the Presidency, António Leitão Amaro, had already indicated that the government was considering the possibility of making the tuition fee repayment mechanism cumulative with the new IRS Jovem.
The new IRS Jovem model, in effect since January 1, 2025, is broader than its predecessor as the maximum age for beneficiaries increased from 30 to 35 years, and the duration of the benefit doubled from five to 10 years.
Additionally, access to the system no longer depends on the level of education (previously, only young people with at least a bachelor’s degree benefitted) and the exemption limit was raised.
This mechanism, the Minister of Education argued today, “is moving in the right direction by allowing all young people to quickly recover the investment they made in their education with better salaries and better jobs.”
Considering that “the basic design of the salary bonus is flawed and ineffective,” the government decided that young graduates wishing to benefit from the measure must forgo the IRS Jovem.
The bonus corresponds to an annual payment of 697 euros for a bachelor’s degree and 1,500 euros for a master’s degree, during the period equivalent to the course duration.
For example, in the case of a three-year bachelor’s degree, the young person receives three annual bonuses of 697 euros, which could be combined with the IRS Jovem if the requirements were met.
Eligible are young workers residing in Portugal, up to 35 years old, who completed their bachelor’s or master’s degrees at public or private higher education institutions, national or foreign, in 2023 or earlier, provided it was less than the number of years the course lasted ago.
Young people who applied for the qualification appreciation bonus in 2024 will continue to receive the remaining payments as planned, and may also benefit from the IRS Jovem.
The second annual payment, which was due by the end of July, will be paid at the end of the second week of September, as informed by the Tax Authority and Customs (AT) on Monday.
