The Portuguese Government expects the national minimum wage to rise from €920 to €970 a month in 2027. The figure appears in the report accompanying the 2027 State Budget proposal and follows the 2025-2028 wage agreement signed in 2024 by the Government, the employers’ confederations and the UGT trade union confederation. It becomes final once the Government publishes the decree that sets it.
How to work it out
The increase is €50 a month, but in Portugal salaries are paid fourteen times a year: twelve monthly payments plus the holiday and Christmas allowances. That makes €700.
On top of this comes the employer’s social security contribution. Under the general scheme, the employer’s rate is 23.75%, which adds around €166.
In total, each employee on the minimum wage represents around €866 more per year for the company.
An example: a company with three people on the minimum wage should budget for close to €2,600 more in 2027.
A starting point
This is a first estimate. Some situations carry contribution rates other than the general scheme, some costs follow the level of salaries, such as workplace accident insurance, and there are decisions to make about salaries close to the minimum. Every company is different, and it is worth looking at each case on its own terms.
Planning ahead
Knowing the figure before January makes it possible to build it into the 2027 budget, review prices and the terms agreed with clients, and prepare cash flow for the months when the allowances are paid. Done early, this planning gives the company a clear view of the year ahead.
Want to know where your company stands? Talk to us or book an exploratory meeting.
Sources: Report on the 2027 State Budget Bill; Tripartite Agreement on Wage Growth and Economic Growth 2025-2028; Decree-Law no. 139/2025 (2026 minimum wage); Portuguese Social Security Contributory Code.