In response to inquiries, an official from the General Confederation of Portuguese Workers (CGTP) emphasized that the budget proposal should not be seen “in isolation from the government’s political choices,” whether within or outside this framework.
Therefore, the labor union led by Tiago Oliveira advocates for “a general and significant increase in the salaries of all workers,” particularly in central, regional, local administrations, and the state enterprise sector, as well as an increase in funds for social functions of the state, “be it in investment and public housing construction, in the National Health Service, in public schools, or at the local government level.”
For the 2026 agenda, the CGTP demands a general salary increase of at least 15%, never less than 150 euros, and the setting of the national minimum wage at 1,050 euros by January.
Regarding fiscal policy, the union advocates that “all essential goods should be subject to the reduced rate,” that is, 6%, and “the effective application of nominal corporate tax rates to profits, especially for large companies.”
It also calls for measures “to tax capital income,” a “general reduction in income tax, considering individual incomes,” and “the mandatory inclusion of all income in this tax category.”
In July, the parliament approved a proposal for a reduction in income tax in 2025 and a commitment to another decrease next year, to be included in the 2026 budget.
Similarly, the General Union of Workers (UGT) also targets salary increases, maintaining that it is “urgent” to review the benchmarks provided in the social accord, ensuring “the value is not below 5%.”
Responding to inquiries, the union led by Mário Mourão also demands an “immediate appreciation” of the national minimum wage to 950 euros in 2026, which is an increase of 30 euros from the agreed 920 euros.
The national minimum wage is defined by decree, following consultation with social partners.
At the last social dialogue meeting, Labor, Solidarity, and Social Security Minister Rosário Palma Ramalho stated the government “neither opens nor closes the door” to revising the trajectory of the guaranteed minimum wage.
Regarding pensioners, the UGT warns that “extraordinary increases do not solve the structural problem of low pensions and poverty.”
By law, the 2026 budget proposal must be submitted to the Assembly of the Republic by October 10. The document will be debated generally on October 27 and 28, then proceed to detailed discussion. A final global vote is scheduled for November 27.
