The Social Security Budget for 2026 promises more money and increases for workers, pensioners and families. The guarantee was given by the Minister of Labor, Solidarity and Social Security, Rosário Palma Ramalho, during the debate on the State Budget proposal for 2026, in the Assembly of the Republic.
According to the government official, Portugal still faces “structural challenges” that require a firm response: wage differences between men and women, low productivity and the persistence of around two million people at risk of poverty or social exclusion.
Salary increases and incentives for companies
“This budget does not give up. We want to create more wealth, but also better protect those who need it most”, said Rosário Palma Ramalho, highlighting that the national average salary will rise by more than 50 euros, reaching 920 euros per month.
The minister also confirmed the maintenance of exemption from IRS and Social Security contributions on productivity bonuses up to 6% of annual income, a measure designed to reward workers’ merit and performance.
Companies will also benefit, with a reduction in IRC, designed to stimulate investment and employment.
Equality, family and professional training at the center of policies
In the same debate, Rosário Palma Ramalho highlighted the Labor Reform 21, which will be presented as a bill.
The objective is to modernize public professional training and promote equal opportunities in the labor market, through measures aimed at both young people and workers undergoing retraining.
In family policies, the Cresce Feliz program and the expansion of the preschool network are among the priorities. The minister also announced the creation of the Informal Caregivers Exchange and the new Strategy for the Rights of Children and Young People, which reinforces family protection and support.
According to the government official, all pensions will be updated in accordance with the law, ensuring that no pensioner loses purchasing power in 2026.
Strengthening the fight against poverty and supporting families
The fight against poverty and social exclusion will be reinforced with strategic partnerships with the solidarity sector, an increase of more than 40 euros in the Solidarity Supplement for the Elderly and new support programs for people with disabilities and the homeless.
Social benefits will grow by 6.3%, while social action programs will increase by 12.5%. Among the complementary measures, it foresees the reinforcement of the Social Security Financial Stabilization Fund, the creation of the Social Benefits Code and tighter mechanisms for controlling and combating fraud.
“This budget combines the balance of public accounts with the reinforcement of social protection, promoting inclusion, equality and economic growth”, concluded the minister.
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