Portugal plans reforms to boost wages

Portugal plans reforms to boost wages - Portugal Business News

News wages Portugal - Portugal is planning reforms to boost wages, according to a statement by Prime Minister Luís Montenegro on May 14th, 2026.

What is Portugal's plan to boost wages and increase productivity?

Portugal's plan to boost wages, according to Prime Minister Luís Montenegro, includes the reduction of personal income tax (IRS) and corporate income tax (IRC) as structural measures to boost productivity, attract investment, and create better conditions for companies to grow and pay higher wages.

“We are valuing work more. We are telling people that it is worthwhile to produce more because the share of their work income that will go to them is larger,” stated Portugal's Prime Minister Luís Montenegro.

Portugal's reforms to boost wages will allow companies to invest more in human capital, technology, and innovation, while increasing their capacity to compete in international markets.

Portugal's Prime Minister also reiterated the Government's intention to move forward with reforms in labor legislation, administrative simplification, and state reform, considering that Portugal needs to create conditions to grow above the European average.

Prime Minister Luís Montenegro stated that he expected Portugal's economy to grow between 3.5% to 4% and as such, he advocated for an economic transformation strategy based on business competitiveness, innovation, and the valorization of labor.

“It is possible for us to grow 2% in our economy. But we want to grow 3.5% to 4%,” stated Portugal's Prime Minister Luís Montenegro.