Portugal plans to increase its national minimum wage from €920 to €970 per month in 2027, giving workers an extra €50 in gross monthly pay if the announced target is implemented. The government confirmed the figure in its October 2026 budget announcement, although the final legal measure establishing the 2027 rate still needs to be verified.
Portugal Government Confirms €970 Wage Target
The Government of Portugal stated on 9 October 2026 that the national minimum wage would rise to €970 next year in its announcement about the proposed 2027 State Budget (OE2027).
The announcement followed the submission of the budget proposal to the Assembly of the Republic on 8 October, putting the minimum-wage increase back in focus for workers and employers across the country.
The proposed increase is part of the government’s existing plan to raise wages gradually over several years. It follows increases that brought the mainland minimum wage to €870 in 2025 and €920 in 2026.
However, workers should understand one important distinction: €970 is the government’s announced target for 2027, not a rate confirmed here as already enacted in law.
How Much More Will Workers Receive?
If the new rate takes effect as announced, employees earning the minimum wage in mainland Portugal will receive €50 more in gross monthly salary than they do in 2026.
That represents an increase of approximately 5.43% compared with the current €920 rate.
Here is what the proposed change means:
- Current minimum wage in 2026: €920 per month.
- Planned minimum wage in 2027: €970 per month.
- Extra gross pay each month: €50.
- Extra gross pay over 12 monthly payments: €600 a year.
- Extra gross pay over 14 payments: €700 a year.
Portugal commonly pays employees in 14 instalments, including holiday and Christmas allowances, although payment arrangements can vary.
These calculations assume that the new rate applies for the full year and that the employee receives all 14 payments. They show gross earnings, not the amount workers will necessarily take home after deductions.
How Portugal’s Minimum Wage Has Increased
The planned €970 rate is the next step in a series of annual increases.
The government’s wage agreement for 2025–2028 established a path of €50 annual increases, aiming to raise the minimum wage to €1,020 by 2028.
The trajectory is as follows:
| Year | Monthly minimum wage |
|---|---|
| 2024 | €820 |
| 2025 | €870 |
| 2026 | €920 |
| 2027 | €970 target |
| 2028 | €1,020 target |
The Government of Portugal announced the agreement with social partners in October 2024, setting out the planned increases for the following years.
The €870 rate for 2025 and €920 rate for 2026 were subsequently implemented, while the figures for 2027 and 2028 represent the next targets in the agreed schedule.
The current €920 rate is established by Decree-Law No. 139/2025, published in Portugal’s official gazette, the Diário da República.
Why Are Trade Unions Asking for More?
Not everyone believes the planned increase will be enough to meet workers’ needs.
According to The Portugal News report published on 8 October 2026, the CGTP trade union confederation wants the minimum wage to reach €1,100 in 2027, while the UGT is calling for a figure above €1,000.
These are union demands, not approved government rates.
Employer confederations, by contrast, have argued against increasing the existing target, according to the same report.
The disagreement reflects a wider debate over whether wage increases are keeping pace with living costs, including housing, food, energy and other everyday expenses.
The government’s €970 target would continue the agreed annual increase, but it would remain below the amounts currently being requested by the unions.
Could the Minimum Wage Reach €1,100?
Portugal has also set a longer-term objective of raising the minimum wage to €1,100 by 2029.
That goal is separate from the €1,020 target for 2028 established under the earlier wage agreement.
The distinction matters because the 2029 figure does not mean workers will automatically receive €1,100 in 2027 or that every future increase has already been legally guaranteed.
Future wage decisions may depend on government policy, negotiations with social partners and the legal measures adopted for each year.
Is the €970 Minimum Wage Already Law?
Not yet confirmed as enacted in the legal sources checked for this report.
The current mainland minimum wage of €920 is established by Decree-Law No. 139/2025, which took effect on 1 January 2026.
The government’s October 2026 announcement confirms its intention to raise the rate to €970 in 2027, but an announcement in a budget proposal is not, by itself, the final legal instrument establishing a new minimum wage.
As of 13 October 2026, a separate decree-law formally setting the 2027 rate at €970 has not been identified in the official legal sources checked.
Workers and employers can monitor the Diário da República for the formal legal measure. The official government portal and the 2027 budget documents are also useful sources for subsequent announcements.
The announced rate applies to mainland Portugal; workers in Madeira and the Azores should check their respective regional minimum-wage rules.
What Happens Next?
The immediate question is whether the government will proceed with the announced €970 rate through the formal legal process or revise its position following further discussions with trade unions and employers.
For workers earning the minimum wage, the difference is straightforward: if the plan is implemented, gross monthly pay will rise by €50 from the 2026 level, potentially adding €600 over 12 payments or €700 over 14 payments across a full year.
For now, €970 is the government’s stated minimum-wage target for 2027. The final confirmation will come through the legal instrument establishing the new rate, which workers should check before treating the increase as formally enacted.
Bikrant Niure is an immigration analyst and writer, and the founder of PortuGuide and Citizhub—a specialized app tracking Portuguese nationality applications. Based in Portugal since 2018, he translates complex AIMA regulations, visa frameworks, and legal updates into actionable guides for the expat community.