Background information

Following the Tripartite agreement for the period 2022-2026, signed between the PS government and the social partners in 2022 (PT-2022-42/3007) with a reinforcement in 2023 (PT-2023-40/3392), the government PSD/CDS that took office on April 2024 took the initiative of launching a proposal for a new tripartite agreement for the period 2025-2028.

The Tripartite Agreement on Wage Improving and Economic Growth 2025-2028 was signed on the 1st October 2024, by the new government and by the social partners represented at Permanent Commission of Social Concertation (CPCS): the 4 employer confederations, i.e., the Entrepreneurial Confederation of Portugal (CIP), the Confederation of Commerce and Services of Portugal (CCP), the Confederation of Farmers of Portugal (CAP), and the Confederation of Portuguese Tourism (CTP); and the the General Union of Workers (UGT). The General Confederation of Portuguese Workers (CGTP) did not sign the agreement.

As the preceding agreement tripartite agreement (PT-2022-42/3007 and PT-2023-40/3392), the tripartite agreement for the period 2025-2028 focuses on wage policy guiding collective bargaining; and on the mandatory minimum wage increase; as well as in various measures (including further fiscal provisions) to compensate employers and companies.

Content of measure

In relation to the mandatory minimum wage, the Tripartite Agreement 2025-2028 foresees an increase in 2025 by 6.1% to €870.00, that is more €15.00 than the increase foreseen by the agreement 2023 (PT-2023-40/3392); it foresees an increase in 2026 by 5.7% to €920.00; an increase in 2027 by 5.4% to €970.00 and an increase by 5.2% to €1,020.00 in 2028.

In relation to the overall target of increasing the average nominal wage, the Tripartite Agreement 2025-2028 foresees an increase by 4.7% in 2025 and 4.6% in 2026 (as foreseen also in the Tripartite Agreement 2022), and an increase by 4.5% in 2027 and 4.5% in 2028. Envisaging an average nominal wage in 2024 around €1,580.00, the trajectory foreseen in the Tripartite Agreement points to reach an average nominal wage in 2028 around €1,890.00.

Employers will benefit from a 50% increase in their charges (with wages and social security contributions) corresponding to the salary increase, in relation to corporate income tax (IRC) deductions, when meeting the following conditions (Incentivo fiscal à valorização salarial):

• Employers that increase by a minimum of 4.7% the annual base wage of workers that in the end of the previous year had an average base wage equal or below the average annual base wage of the company.
• Employers that secure a global increase by at least 4.7% of the average annual base wage of the company compared with the average in the end of previous year.
• Employers covered by a collective agreement signed or updated less than 3 years.

Productivity and performance bonuses as well as profits-share bonus paid in a voluntary and irregular basis up to 6% of the workers base remuneration will be exempted of personal income tax (IRS) and contributions to social security.

Use of measure

All the workers in the private sector and public sector companies.

Contents

• Bonuses
• Other topics
• Pay increases

Target groups

Workers	Businesses	Citizens
Employees in standard employment	Applies to all businesses	Does not apply to citizens

Actors and funding

Actors	Funding
National government Trade unions Employers' organisations Company / Companies	No special funding required

Social partners

Social partners' role in designing the measure and form of involvement:

	Trade unions	Employers' organisations
Role	Agreed (outcome) incl. social partner initiative	Agreed (outcome) incl. social partner initiative
Form	Consultation through tripartite or bipartite social dialogue bodies	Consultation through tripartite or bipartite social dialogue bodies

Social partners' role in the implementation, monitoring and assessment phase:

• Social partners jointly
• Main level of involvement: Peak or cross-sectoral level

Involvement

The consultation process out of which the Tripartite Agreement on Wage Recovery and Economic Economic Growth 2025-2028 resulted, signed on 1st October 2024, involved the PSD/CDS government and all the social partners represented at Permanent Commission of Social Concertation (CPCS): the 4 employer confederations - the Entrepreneurial Confederation of Portugal (CIP), the Confederation of Commerce and Services of Portugal (CCP), the Confederation of Farmers of Portugal (CAP), and the Confederation of Portuguese Tourism (CTP); and the two trade union confederations - the General Confederation of Portuguese Workers (CGTP) and the General Union of Workers (UGT). However, CGTP, the largest trade union confederation did not sign the agreement.

Views and reactions

All the social partners represented at Permanent Commission of Social Concertation (CPCS): the 4 employer confederations - the Entrepreneurial Confederation of Portugal (CIP), the Confederation of Commerce and Services of Portugal (CCP), the Confederation of Farmers of Portugal (CAP), and the Confederation of Portuguese Tourism (CTP); and the two trade union confederations - the General Confederation of Portuguese Workers (CGTP) and the General Union of Workers (UGT). However, CGTP, the largest trade union confederation did not sign the agreement.

Sources

• 09 October 2022: Acordo de Médio Prazo de Melhoria dos Rendimentos dos Salários e da Competitividade (ces.pt)
• 07 October 2023: Reforço do Acordo de Médio Prazo de Melhoria dos Rendimentos, dos Salários e da Competitividade (www.portugal.gov.pt)
• 07 October 2023: CIP: CIP não subscreve acordo de rendimentos: o que falta no acordo faz muito falta (cip.org.pt)
• 01 October 2024: Acordo Tripartido sobre Valorização Salarial e Crescimento Económico 2025-2028 (ces.pt)
• 01 October 2024: CGTP_Comunicado de Imprensa nº 025/24, 1 October 2024 (www.cgtp.pt)
• 01 October 2024: CAP assina acordo de concertação social (www.cap.pt)
• 01 October 2024: Martins, 1 Outubro 2024, Público. (www.publico.pt)