The increase in the national minimum wage in 2026 will result in a significant increase in the costs borne by companies for each worker who earns the minimum wage. The increase in the monthly salary to 920 euros gross implies not only an increase in the amount paid directly to the worker, but also an automatic increase in contributions paid to Social Security.
In total, the accounts point to an additional annual cost of at least 866 euros per worker, a value that results from the combination of the new minimum wage and the increase in the Single Social Tax (TSU) borne by employers.
The political decision behind the rise
According to the ECO news portal, the update of the minimum wage results from the Social Concertation agreement signed in October 2024 between the Government, business confederations and UGT, which defined a trajectory of increases until 2028. This commitment provided for a gradual evolution of the guaranteed minimum monthly wage.
According to the same source, the Executive led by Luís Montenegro has now materialized this understanding through a recently published ordinance, which sets the minimum wage to be in force in 2026 at 920 gross euros, which represents an increase of 5.7% compared to the 870 euros in force in 2025.
The direct impact on salaries paid
Considering only the salary amount, companies will have to pay an additional 50 euros per month to each worker covered by the minimum wage. The portal writes that, in a full year, this increase corresponds to an additional 700 euros, taking into account payment in 14 months.
This salary increase is automatic and transversal, applying to all contracts in which the remuneration is indexed to the minimum wage, regardless of the sector of activity or the size of the company.
The hidden Social Security bill
But the impact does not stop at salary. The publication adds that the increase in salary increases the value of the Single Social Tax borne by the employer, set at 23.75% of gross remuneration.
In concrete numbers, according to the same source, in 2025 companies paid around 206.6 euros per month to Social Security for each minimum wage worker. In 2026, this amount rises to 218.5 euros, plus 11.9 euros per month.
Over 14 months, the increase in social contributions represents an additional 166.25 euros per worker, compared to what was paid in 2025. The website explains that this value is added to the direct salary increase, significantly increasing the total cost of the job.
In total, writes , a worker will continue to receive 920 euros gross per month, but the company will now bear a monthly cost of 1,138.5 euros, including TSU. All in all, the monthly charge rises by 61.9 euros and the annual cost increases by 866.25 euros per worker.
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