PortugalPolitics

Government renews 15th month and tax benefit for companies that increase wages

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Based on a feed excerpt; full article content has not been acquired. Source evidence retrieved 08/10/2026, 14:11:25 UTC.

Briefings

Portuguese government plans to extend tax exemptions for companies increasing salaries by 4.5% in 2027 and 6% in 2028, while introducing a new 200% tax deduction for salary increase costs. These measures were part of a tripartite agreement signed in October 2024, updated for the 2026 budget, and are expected to apply to private sector companies meeting specific wage thresholds.

Key points

• Companies in Portugal can deduct 200% of salary increase costs from taxes in 2027 if they increase the average monthly wage of employees by 4.5%.
• Tax exemptions for productivity and performance bonuses remain valid for employees earning up to 6% of their base salary in 2027.

Context

The fiscal policy reflects the tripartite agreement on wage growth signed in October 2024, updated for the 2026 budget. The measures aim to incentivize salary increases while maintaining tax incentives for high-performing employees.

Limitations

Data covers only 2026-2027 budget periods. Specific company eligibility criteria and wage thresholds are not detailed in the source. Some tax rates and deduction percentages are estimated based on the agreement rather than confirmed figures.

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