Can minimum wage rise higher in 2027? Government responds

Can minimum wage rise higher in 2027? Government responds

The Government included in the State Budget for 2027 the increase of the national minimum wage to EUR 970. Unions demand greater value, but the government remembers that there is an agreement in place.

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12/10/2026
by

Beatriz Vasconcelos, Lusa

 

Asked precisely about this, the Minister of Labor, Maria do Rosário Palma Ramalho, reiterated that the government “complys what it signs in the agreements”, so the EUR 970 in 2027 “is what is on the table“.

I also said that any amendment “will have to come from a new agreement” with the approval of three parties: Government, business confederations and trade unions.

In the report accompanying the proposal from the State Budget for 2027, which was delivered to Parliament last week, the Government assumed that the national minimum wage rises to EUR 970 in 2027, as provided for in the agreement signed in Social Concertation.

Government confirms minimum wage increase to EUR 970 in 2027

The Government confirmed that the national minimum wage will rise to EUR 970 in 2027, as provided for in the Social Concertation Agreement, according to the report attached to the proposed State Budget for next year.

Lusa 15:51 – 08/10/2026

The national minimum wage, which is at EUR 920, is defined by the government's ordinance after listening to the social partners.

Unions ask that you go further

The trade unions have been advocating an increase above the agreed target, arguing in particular that inflation is above expectations.

CGTP argued that the minimum guaranteed remuneration up to 1,100 euros next year, while UGT claims that stay above 1,000 euros.

The business confederations, in turn, stated that they do not see “plausible” reasons for moving forward with a strengthening of the existing wage valuation and economic growth agreement, particularly at national minimum wage level, arguing that there are measures that have not yet been complied with.

What does the agreement in force provide for? 

The tripartite agreement on wage valuation and economic growth for 2025-2028, signed in October 2024 between the government, the four business confederations and the General Workers Union (UGT) reviewed the trajectory of the national minimum wage, predicting increases of EUR 50 per year and reaching EUR 1,020 in 2028.

Nevertheless, following the legislative elections of 18 May 2025, in the government program, the executive set a new target to cover the entire legislature, pointing out as an objective that the minimum guaranteed remuneration would reach 1,100 gross per month in 2029.

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