The Minister of Finance assured that there is fiscal neutrality for wage increases of up to 4.5%, due to the updating of IRS ranks and other factors.
© Lusa
08/10/2026
by
Lusa
O minister of Finance today assured that there is fiscal neutrality for those with wage increases of up to 4.5%, due to the updating of the IRS ranks, the minimum of existence, the specific deduction and the fall in rates.
Asked, in a press conference presenting the proposal for a State Budget for 2027, on the gap between the updating of the IRS echelons and the reference for the overall increase in wages of 4.5% provided for in the agreement signed between UGT, business confederations and Government in 2024, Joaquim Miranda Sarmento reiterated that there is a level of tax neutrality.
“By updating the ranks by 3.8%, by updating the minimum of existence, which causes up to the minimum wage not to be paid IRS, by updating the specific deduction and to the terms lowered the IRS fees, in the diploma that was this Wednesday the discussion, assuming that it will pass in parliament, this means a level of tax neutrality at least 4.5%”, he explained.
Thus, those who have increases up to 4.5%, which is the reference that is included in the Social Concertation agreement, “will pay less IRS in 2027 than paid in 2026”, he concluded.
The limits of the nine IRS echelons will be updated by 3.88% next year, according to the proposed State Budget for 2027 (OE2027) delivered today by the Government in parliament, which also includes an update of the minimum existence.
Echelons rates remain the same as those which the Government has entered in the bill which provides for an additional drop in the IRS to 2026, not yet voted in parliament.
For 2027, the OE proposal provides that the reference value of the minimum of existence should also be higher.
The minimum existence is a tax rule which exempts citizens with lower incomes wholly or partly for the net salary to be never less than a certain amount.
The government wants this reference to be “equal to the highest value between 13,580 euros and 1,5 × 14 × Social Support Indexant (IAS)”, according to the text of the legislative proposal.