“In execution of the 2025-2028 agreement, which reflects the ambition of the XXV Constitutional Government and social partners to make the country more prosperous, to provide fairer wages, decent working conditions and quality jobs, and continuing the policy of wage increases, this decree-law determines the increase of the guaranteed minimum monthly wage to 920 euros, effective from January 1, 2026,” reads the newly published document.
In October 2024, the government of Luís Montenegro signed an agreement with the four business confederations and the UGT (General Union of Workers) that provides, in particular, for annual increases of 50 euros in the minimum wage until 2028.
In September of this year, the trade union confederation led by Mário Mourão argued that the increase planned for 2026 should be revised, as was done in previous years.
Initially, the Minister of Labour, Maria do Rosário Palma Ramalho, neither opened nor closed the door to this. The revision was initially considered, but the government ultimately included the already foreseen 920 euros in the 2026 State Budget, a figure that was approved by the Council of Ministers and promulgated by the President of the Republic.
This minimum wage update also impacts multi-year administrative contracts, “in which the salary component linked to the guaranteed minimum monthly wage constitutes a determining factor in the formation of the contractual price.”
This is the case for contracts for the acquisition of cleaning services, security and human surveillance services, building maintenance, facilities or equipment, and canteen services.
“In this sense, it is therefore important to establish an exceptional regime that allows for the extraordinary updating of the price of these contracts, safeguarding the provision and effective quality of these services, based on the commitment set out in the 2025-2028 Agreement and the permanent social dialogue with the social partners that the XXV Constitutional Government intends to maintain,” states the decree-law published this morning.