Minimum wage rises from 820 to 870 euros on 1 January 2025

"A significant effort to increase income from work for those who need it most," stated Leitão Amaro

The Council of Ministers "approved the Decree-Law that rises the national minimum wage from 820 para 870 euros per month, a trajectory agreed with the social partners of getting to 1020 euros in 2028", the Minister of the Presidency António Leitão Amaro announced.

"This fair and important rise [for 2025] is significantly higher than planned" before the inauguration of the current cabinet, representing "a significant effort to boost income from work for those who need it the most", he said.

The Minister of the Presidency then went into detail on the fact that "by this Government’s decision, in agreement with the social partners, there are an additional 210 euros [per annum] in 2025" for those who are paid the minimum wage. This Decree-Law enters into force on 1 January 2025. 

The guaranteed minimum wage is a benchmark for the labour market, whether for competitiveness and companies’ sustainability, whether for the proper work retribution, and is a social cohesion factor, as well as a pivotal instrument in diminishing social disparity.

Strengthening resources for law enforcement

The Council also approved "a new 20-million-euro expenditure" announced yesterday by the Prime Minister "for new tenders to procure 650 new vehicles for law enforcement" 

"These 650 heavy vehicles, cars, and motorbikes will enable PSP and GNR operatives to better protect the Portuguese people" because although "Portugal i sone of the safest countries in the world, we must continue to have it this way", Leitão Amaro said.

This decision to reinforce the Portuguese people’s safety and security was approved "following the previous measures to enhance law enforcement, increase their size, boost their resources, and protection", he added.

"This Government identified the concrete needs and today took the decision to approve these 20 million euros. This Government decided that these 655 [vehicles] are what would be required, in estimate. This Government decided and will pay for this new tender for their procurement", the Minister of the Presidency indicated.

Cutting red tape

The Minister likewise noted the approval of a bill to accelerate and expand housing available, which "will go for consultation at the National Municipalities Association and the professional associations that need to have a say on it". 

The bill, "promised by the Government", "makes the rules on soil use more flexible, setting up an exceptional scheme that enables construction and urbanisation in areas where it is not possible today, by the decision of the municipal assembly, namely on soils classified as rustic and national ecological reserves, and national agricultural reserves, although not on their most critical areas".

This flexibilization is restricted: 70% of the new developments must be "for public housing at moderate rates, that is, for the middle classes, excluding luxury dwellings". 

It also protects "the most sensitive natural values of the ecological and agricultural reserves, the Natura, in the classified areas. Risk areas and agricultural land of greater potential" are also left out, the Minister stressed. 

"Another measure to cut red tape" was also approved, "transposing a European Union directive that streamlines procedures and VAT exemptions for small enterprises".