# Unions Seek Up to €1,100 Minimum Wage for 2027, Employers Resist

> UGT and CGTP want 2027's minimum wage above the agreed €970 as talks resume; employers reject reopening the deal. What it means for foreign workers.

- Source: https://www.growinportugal.com/news/unions-demand-1-030-minimum-wage-for-2027-as-employers-push-2026-09-21
- Publisher: GrowIN Portugal (https://www.growinportugal.com)
- Published: 2026-09-21
- Last reviewed: 2026-09-21
- Language: en

> **Key figures — as of 2026-09-21:** Minimum wage 2026 = **€920/month gross** (€818.80 net) — 2027 figure already agreed in Concertação Social = **€970** — UGT now demands **€1,000** for 2027, CGTP demands **€1,100** — employers (CIP and other confederations) reject reopening the deal — next Concertação Social meeting: **21 October 2026**.

## The number everyone's arguing about

Portugal's minimum wage is legally set to rise from €920 to €970 in January 2027 — the next step in the four-year wage path signed by the government and social partners in October 2024. That much was never in dispute. What's now on the table is whether €970 is enough. At the Concertação Social meeting of 16 September, the UGT's secretary-general argued the minimum wage should rise to €1,000 in 2027, while the CGTP has gone further: the confederation wants the national minimum wage to reach €1,100 in 2027, a proposal it built into its policy demands for next year.

The gap between the two union positions and the figure already written into law is real money for anyone earning at the floor — and Portugal has a lot of foreign workers doing exactly that, in hospitality, agriculture, delivery, cleaning and care work.

## Why the deal might reopen — or might not

The current trajectory sets annual increases of €50: the minimum wage rose to €870 in 2025 and €920 in 2026, with €970 planned for 2027 and €1,020 for 2028. That path comes from an October 2024 agreement the Montenegro government signed with the four business confederations and the UGT, providing for annual €50 increases in the minimum wage until 2028.

Labour Minister Rosário Palma Ramalho hasn't shut the door on revisiting it. She insisted the agreed deal — which sets €970 for January 2027 — is meant to be honoured, though the government is "sempre aberto a rever" the understandings signed with social partners. Her line at the most recent meeting was blunt: "O que está em cima da mesa é o acordo para cumprir que tem o valor já fixado para o próximo ano" — what's on the table is the agreement to be honoured, at the value already fixed for next year.

Employers are even less keen to reopen it. Business confederations have shown much less willingness to raise the figure; the Confederação Empresarial de Portugal has argued there's no basis to go beyond the agreed €970, since the productivity gains meant to accompany wage growth haven't materialised. Instead of a bigger wage hike, employer groups are steering the conversation toward tax relief — corporate and personal income tax adjustments were flagged as part of the same package when the 2026 rise was announced, alongside a broader labour law reform still being negotiated.

## What it means for foreign workers on minimum wage

For non-Portuguese residents earning at or near the floor — a common situation for recent arrivals still building local job history — the practical question is simple: how much extra lands in the bank account. Here the IRS exemption at this income level matters. From 2026, the €920 minimum wage is exempt from IRS withholding for workers at this salary level, which affects net pay but not the employer's cost. In practice, €920 gross currently works out to €818.80 net once social security is deducted.

**GrowIN's own reading of the numbers:** if the agreed €970 goes through unchanged, that's a gross gain of €50/month over 2026 — worth roughly €700 over the year across 14 payments. If the UGT's €1,000 proposal wins instead, the gain doubles to €80/month gross, or about €1,120 a year. If the CGTP's €1,100 figure prevailed, the annual gross gain would jump to €2,520 — a difference of €180 more per month, correspondent to €2,520 additional gross euros a year compared with today's €920. For a foreign family relying on two minimum-wage incomes, that CGTP scenario alone is the difference of roughly €5,000 a year between household budgets — a gap wide enough to shift decisions on renting versus sharing accommodation, or whether a second parent works full-time.

"Whichever number wins in October, it's the sectors employing the most foreign workers — hospitality, agriculture, care, delivery — that will feel it first," notes GrowIN Portugal Editorial.

## What to watch next

The next Concertação Social meeting is scheduled for 21 October 2026, and it's expected to clarify whether the €970 figure holds or gets revised upward. The State Budget for 2027 (OE2027) is also being discussed in parallel, with the Finance Minister presenting its outline to social partners at recent sessions — any tax measures agreed there could matter as much to take-home pay as the headline wage number itself.

For now, nothing is confirmed beyond the legally binding €970. Foreign workers and employers alike should treat the €1,000 and €1,100 figures as union proposals, not settled policy — and check back after the October meeting before adjusting budgets or payroll. Employers hiring foreign staff should also keep an eye on parallel salary transparency rules due for discussion, which could change what jobs must disclose before an offer is made. For broader guidance on settling in and managing income in Portugal, see our [relocation](/relocation/) hub and [tax & NIF](/tax-and-nif/) guide.

The wage floor for 2027 is not yet final — and until the social partners sit down again on 21 October, both sides have every incentive to keep pushing their numbers publicly.

## Sources

- [Diário de Notícias](https://www.dn.pt/sociedade/ugt-quer-salrio-mnimo-nos-1000-euros-em-2027-e-cgtp-pede-choque-salarial)
- [ECO](https://eco.sapo.pt/2026/09/16/salario-minimo-de-mil-euros-ja-em-2027-ugt-defende-patroes-afastam/)
- [Notícias ao Minuto](https://www.noticiasaominuto.com/economia/3052847/970-1000-salario-minimo-divide-concertacao-social-o-que-acontecera)
- [Portuguese Government (XXV Governo Constitucional)](https://portugal.gov.pt/en/gc25/communication/news/government-increases-minimum-wage-to-920-euros-in-2026)

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© GrowIN Portugal. Cite as: GrowIN Portugal, "Unions Seek Up to €1,100 Minimum Wage for 2027, Employers Resist", https://www.growinportugal.com/news/unions-demand-1-030-minimum-wage-for-2027-as-employers-push-2026-09-21