Luís Montenegro announced a significant measure at the start of his visit to the União Mutualista Nossa Senhora da Conceição in Montijo, alongside Minister of Labor, Solidarity and Social Security, Maria do Rosário Palma Ramalho.
Pedro Santos, president of the mutualist union, addressed the financial impacts of annual minimum wage increases on social solidarity institutions, but Montenegro clarified that the issue, in his view, does not lie in raising the lowest wages.
The president of the PSD advocated for Portugal to establish a social sector financing law to regulate relations with these institutions, similar to the Local Finance Law concerning municipalities.
“This new law will have a well-defined format regarding funding criteria, quantifying the actual costs per user,” he stated, emphasizing the inclusion of cost increases from measures like annual minimum wage hikes in its projections.
Montenegro stressed that this financing law aims primarily to offer “financial predictability” to social sector institutions, thereby “freeing them from the contingencies of political cycles.”
During the visit, the Prime Minister also emphasized a governmental initiative within the 2024 Budget: increasing consignment from 0.5 to one percent per taxpayer.
The mutualist union president noted that many are unaware of this mechanism, despite increased revenue. Montenegro responded by stating the need to “raise awareness” about IRS consignment.
The AD coalition program, comprising PSD/CDS, projects IRS consignment to reach 1.5%.
União Mutualista Nossa Senhora da Conceição, located in Montijo, has a 152-year history, serves nearly a thousand users daily, employs 180 workers, and offers 16 social services.
Its facilities include a day center, a community pharmacy, a mutualist clinic, and a long-term and maintenance type Integrated Continuing Care Unit.
