Employers and unions press government for tax cuts and wage reforms ahead of 2027 budget

Ahead of the presentation of the 2027 State Budget, the Confederation of Commerce and Services of Portugal announced a forthcoming set of fiscal, labour and economic measures aimed at reducing the tax burden on companies, particularly micro, small and medium enterprises. The Confederation of Portuguese Farmers called for tax incentives that would facilitate employer-provided housing and strengthen forest fire prevention.

The Portuguese Business Confederation urged a gradual cut to corporate income tax, the removal of certain levies and stronger fiscal incentives for investment and recapitalisation. Trade unions, represented by UGT and CGTP, appealed for income-tax reforms that would benefit workers, a revision of the tripartite wage-growth agreement, and an increase in the national minimum wage, without specifying an exact figure. They also highlighted the importance of maintaining high public investment in services, innovation and infrastructure as the EU recovery plan winds down in 2026. A meeting of the Social Concertation, attended by Finance Minister Joaquim Miranda Sarmento, will address these proposals and the transposition of the Salary Transparency Directive.