“It is also with a focus on the competitiveness of our economy and productivity that we are opening up in Portugal the prospect of having labor laws even more conducive to work, job quality, and economic competitiveness as a way to improve salary conditions, protect workers’ rights and guarantees, and also to reconcile professional and family life,” stated at the Porto Social Forum 2025.
Montenegro pointed out that at the heart of this perspective is an intense social dialogue and the strengthening of collective bargaining.
The official, alongside the President of the European Council, António Costa, affirmed that Portugal is firmly aligned with the goal of reinforcing economic competitiveness by promoting and creating quality jobs.
“We hence have, as I must add here, a firm policy to enhance wages and reduce taxes on work income,” he noted.
Montenegro further stated that in 2024, Portugal was the country in the Organisation for Economic Co-operation and Development (OECD) where the increase in workers’ income was the greatest.
This increase was due to the economy’s capability to pay higher salaries and the Government’s decision to impose lower taxes on work income, he emphasized.
“This has resulted in the largest real income growth at the OECD level,” he insisted.
The preliminary draft of labor legislation reform approved by the Government, currently under negotiation with social partners, foresees the revision of “over a hundred” articles of the Labor Code.
The proposed changes – labeled “Trabalho XXI” and presented by the Government on July 24 as a “profound” revision of labor laws – address areas ranging from parenthood (with changes in parental leaves, breastfeeding, and gestational mourning) to flexible work, company training, or trial periods in employment contracts, also proposing the expansion of sectors included under minimum service requirements in case of strikes.
The Porto Social Forum 2025, which began on Thursday and ends today, focuses on “Quality Jobs in a Competitive Social Europe” and is organized by the Portuguese Government with the support of the European Commission.
The event brings together over 200 international leaders, including “more than 30 delegations from different countries.”
