Measure is part of the Government’s commitment to strengthen household income and bring Portugal closer to the European wage average.

The Government has announced an increase in the national minimum wage to 965 euros starting in January 2025, fulfilling the goal set in the income and competitiveness agreement. The measure aims to continue the path of wage appreciation, launched several years ago, and support families facing high living costs.

According to the executive, the increase results from concerted dialogue with social partners, seeking to balance business needs with the urgency of improving workers’ purchasing power. This update will have a direct impact on around 800,000 people, representing a significant reinforcement of disposable income.

Despite the positive nature of the measure, some business associations warn of potential adaptation challenges in sectors with lower productivity. Even so, the Government is committed to supporting companies through competitiveness incentives and training programs.

Experts emphasize that the increase in the minimum wage will also have indirect effects, boosting domestic consumption and stimulating the economy. However, they warn that it is essential to monitor the impact on the labor market and ensure that wage appreciation progresses in line with productivity gains.