What changes for the Portuguese in 2024

WAGES

Nominal wage boosts for workers should be around 5% in 2024, due to the reinforcement of the Income, Wages, and Competitiveness Medium-Term Agreement signed by the Government and the social partners.

MINIMUM WAGE

The Minimum Wage will go up 60 euros a month to 820 euros, the greatest increase ever.

TAXATION

Workers will pay less income tax. The brackets are updated at 3% and the marginal rates from the first to the fifth bracket lower.

YOUTHS

Students up to 35 years of age who finish their undergraduate or master’s degrees as of 2023 and who work in Portugal will be entitled to a wage bonus due to their qualifications, which corresponds to having their higher education fees returned. The bonuses are paid according to the number of years of the degrees: 697 euros per year for undergraduate degrees and 1500 euros per year for master’s degrees.

Income tax lowers even more for youths. In 2024, a larger portion of their income will be exempt from taxation. For instance, in their first year working, income up to 20,370.4 euros is completely exempt.

Public transportation passes for students are free for students up to 23 years of age.

Youths who conclude or have concluded their 12th grade of schooling between 2023 and 2025 can travel free of charge for 7 days, with unlimited train trips, and spend 6 nights in youth hostels under the ANDA programme.

PENSIONS

Pensions will increase between 5% and 6%, that is, above inflation.

The Solidary Benefit for the Elderly (CSI) will be increased 12.8%; the annual reference rate will go from €5,858.63 to €6,608.00. All pensioners will receive income above the poverty threshold.

FAMILY ALLOWANCE

Family allowance will go up €22 per month (compared to 2023) and €33 per month for single parent families (compared to 2023). 

The infancy guarantee reference rate (a complement of the family allowance) will go up to €122 per month.

UNEMPLOYMENT

Those who have been unemployed for more than 12 months will be able to combine a wage with their unemployment benefit as a way of encouraging their return to the labour market.

The unemployment benefit’s minimum level will rise (to 586 euros) a will the maximum (to 1,273 euros).

PUBLIC ADMINISTRATION

Civil servant’s wages will increase through a 5.4% boost, with their wages being updated between 6.8% and a minimum of 3%.

They will have swifter career progressions, whether because the necessary points to progress will decrease from 10 to 8, as set in the new assessment programme (SIADAP), or because the workers affected by wage freezing will allow them to progress with 6 points, as per the career accelerator.

Senior staff will reach the top of their career faster, combining a reduction of the number of wage positions and career enhancement in a more pronounced manner in the first positions, with a new entry position, allowing workers in that position to have an immediate 263.15-euro rise.

CITIZEN BUREAUX

In January, the following will open:

• 4 new Citizen Bureaux (Torres Novas, Vila de Rei, Vila Pouca de Aguiar, and Montalegre)

• 15 new Citizen Areas (Loriga, Janeiro de Cima, Cardigos, Gavião, Benfica Mercado, Souto da Casa, Barbacena and Vila Fernando, Melres, and Boliqueime)

DIGITAL PAPERS

In 2024, the scheme to amend the legal schemes governing the Citizen ID, the Mobile Digital Key and Electoral Register will enter into force. 

With this measure, the ID.Gov app will make available in digital format all the ID papers or documents and their legal value is the same as the hard copy documents.

MOBILITY

The monthly pass prices will be frozen. They will continue to cost 30 euros (municipal) or 40 euros (metropolitan).

The enlargement of the Porto Metro Yellow Line to Vila d’Este will begin operating, serving another 20 million passengers /hour per year.

HEALTH

The Local Healthcare Units (ULS) will be extended to the entire country, fostering the integration of healthcare, and making it easier for people to have access to primary healthcare, hospitals, and continued care.

There will be more Family Healthcare Units (USF) with the creation of 250 new model B Family Healthcare Units, meaning 250,000 Portuguese will be allocated a family physician.

Healthcare professionals’ careers will be enhanced with the entry into force of the interim agreement with the medical trade unions that will allow a wage increase of 15% for healthcare professionals at the start of their career; the new scheme of full dedication, that will allow wage increases higher than 43% for the professionals involved; the new career of healthcare assistant, which will cover 24,000 workers and the single permit scheme that will enable hundreds of biologists, pharmacists, nutritionists, and psychologists working in the NHS to be reclassified.

HOUSING

The Youth Door 65 will be strengthened, which offers housing to youths at prices compatible with their incomes. In 2024, it will have a greater allocation than ever with a growth rate of 19.5% when compared to 2023, allowing the assistance to all applicants to continue.

Income tax and municipal housing tax exemption for rental agreements prior to 1990, as well as a mechanism to compensate the landlords, which will enter into force in 2024. 

Rebates on housing rentals will increase 20% in the income tax statement to €600.

Assistance to rent payment will be updated by 4.94%.

EDUCATION

Teachers placed in the regions of Lisbon and the Tagus Valley and the Algarve who reside more than 70 km away from the school where they are placed will benefit from an expense allowance if their expenses with their permanent house and the one they live in represent an effort rate greater than 35%.

In 2024, the 365 Specialist Technological Centres will be in their implementation stage. These are an unprecedented investment in the secondary education vocational courses’ infrastructure. These Centres, in the fields of renewables, IT, and digital, are reference facilities for vocational training, where the teaching equipment is suited to companies’ current and future requirements. To this investment we add the reversal of the 5% cut in the vocational courses’ funding table.

SCHOOLS

The Programme that will invest 1.7 billion euros in teaching facilities in the country will kick off. 451 schools will be built or requalified and the first interventions will begin in 2024.

HIGHER EDUCATION

Higher education institutions will have a boost of 138 million euros to be distributed according to a new funding model. In addition, the first three programme-contracts will be implemented with the Universities of the Azores and Madeira (located in ultra-peripherical regions and with low demographic pressure), as well as the Open University.

The direct social action will be strengthened, and 70 million euros allocated to the Social Action Fund, the greatest ever budge from tax revenue, added to the 141 million euros in European funds.

SCIENTIFIC RESEARCH 

The first edition of the FCT-Tenure competition is under way to hire 1000 doctoral researchers in 2024 for tenure only, ensuring stability is given to the scientific career.

MUSEUMS, MONUMENTS, AND HERITAGE

The Museus e Monumentos de Portugal, state enterprise, and the Património Cultural, public institute, will start operating.

INCENTIVES TO CULTURE

New rules for the incentive to production under the Fund to Support Tourism and Cinema (which maintains its 14-million allocation), and a new financial incentive to major cinema and audiovisual production (up to a cap of €20M per annum)

LAW ENFORCEMENT

Wage increases for GNR and PSP workers of 3% to 5%, due to the strengthening of the Home Affairs budget, to the amount of €150M€.

FIREFIGHTERS

Digital Firefighter Card, a document that enables any firefighter to identify themselves as such when addressing an institution, such as a hospital. The card is available digitally via the app id.gov.pt as well as in hard copy.

EMIGRATION

The services offered by the Virtual Consulate will be broadened.

1 million euros to fund Portuguese associations in the communities abroad.

400 thousand euros to support social communication bodies in the communities abroad.

MILITARY CAREERS

All military in service will receive an extra 70 euros in their monthly wages due to the approval of the increase of the fixed part of the military bonus, which will be paid back to 1 January 2023.

The Army and Air Force will now be able to hire lower ranking soldiers in their military permanent staff payroll for the first time since the end of conscription.

MILITARY EQUIPMENT

The Armed Forces will have new resources and equipment for Portugal’s defence:

The Air Force will have a new KC-390 plane, of five acquired; four new aircraft to assist with firefighting, and the process to modernise the P-3 fleet for maritime patrol missions will be under way.

In the Navy, the first Coastal Patrol Ship (of 8 to be acquired) will be delivered in 2024, six new Ocean Patrol Vessels will begin to be built, and the upgrade of the Bartolomeu Dias Class frigates, as well as the re-motoring of the Lynx helicopters will begin. 

In the Army, the first five Military Tactical Vehicles will be received, under the Tactical Vehicle Family project.

TOLLS

New reductions for all vehicles circulating on motorways in the inland areas and the Algarve:

- 30% for light vehicles

- 22.6% for freight and passenger transport during the day, and the reduction remains in force for night-time, weekends, and bank holidays.

COMPANIES

The improvement of the tax incentive scheme on capitalising companies to encourage the use of equity rather than resorting to debt. The benefit rate increases from the current 4.5% (5% for an SME) to a variable 12-month Euribor reference, plus a 1.5 pp spread (2 pp for an SME); the benefit is escalated by 50% in 2024 and the reference period is adjusted from 10 to 7 years.

AGRICULTURE AND FISHERIES

Reduction of the applicable rate on coloured petrol to €21 for 1,000 litres.

ZERO VAT during 2024 in the transmission of production factors used in agricultural production activities, fertilisers, flours, grains, seeds.

A 30% boost in the benefit allocated to costal fisheries, small aquiculture and forestry to offset t