The new year brings improvements in the income of thousands of Portuguese people, with increases in the lowest pensions, the solidarity supplement for the elderly and the minimum wage, in addition to slight cuts in the IRS for some levels.
On the income side, 2026 starts with above-inflation increases in the lowest pensions and the national minimum wage. The minimum wage increases by 50 euros, from the current 870 to 920 euros. In public service, no one will receive less than 934 euros gross.
The lowest pensions – those that do not exceed 1,074 euros per month, a value that covers the majority of pensioners – will have an increase of 2.8% this year, which corresponds to a minimum increase of 9 euros. A pensioner who currently receives 600 euros will have an increase of almost 20 euros per month, while anyone who receives 800 euros will see their pension increase by around 22 euros.
Contrary to what was announced, pensions will be updated in January. The new value of the Solidarity Supplement for the Elderly will be paid in February, retroactive to the beginning of the year. This social benefit rises to 670 euros per month, 40 euros more than the current value.
In the field of taxes, IRS rates between the second and fifth brackets decrease slightly. Anyone earning a salary of up to 920 euros will continue to be exempt from IRS, as well as productivity bonuses.
Inflation forecast for 2026 is 2.1%, according to estimates from the Government and the Bank of Portugal.
