The Government confirms the update of the national minimum wage (SMN) next year to 920 euros, as defined in the multi-annual agreement signed in Social Concertation, an increase of 50 euros compared to the current 870 euros, according to the report that accompanies the State Budget proposal for 2026 (OE2026), delivered to Parliament this Thursday, October 9th.
“At the same time, the 25th Government will boost salary growth, following the trajectory started by the previous one of increasing the minimum wage to 1100 euros at the end of the legislature — this year (2026), with an increase of 50 euros per month, to 920 euros — and enhancing Public Administration careers”, the document reads.
The Government also updated the value of the minimum existence to 12,880 euros, thus excluding remunerations of up to 920 euros per month from taxation. I.e, Workers who earn the National Minimum Wage (SMN) are also exempt from paying the IRS in 2026, as is currently the case.
After the Minister of Labor, Rosário Palma Ramalho, stated at the beginning of the week that the Government “neither opens nor closes the door” to an increase in the SMN above 920 euros in 2026, the Minister of Finance declined to say whether the Executive would be willing to go further.
“It is a matter under discussion in Social Concertation and I will not interfere in that discussion here in this place. There is a dedicated Social Concertation forum and that is where it should be discussed”Joaquim Miranda Sarmento responded to journalists this Thursday, during the press conference for the presentation of OE2026.