Tuesday, 8 September
IRS deadlines, tax regimes, Social Security and labour law.
The professional school Prepara Portugal is hosting a free conference in Porto on September 12 regarding immigrant professionalization, AI, cybersecurity, and entrepreneurship. The event includes a contest for innovative projects with prizes up to 3,000 euros and a graduation ceremony for recent students.
The Minister of Labor, Solidarity and Social Security stated that the government will not advance with structural Social Security reforms during the current legislature. The report from the government-appointed working group, which suggests changes such as revised early retirement penalties and new pension investment instruments, is intended for public debate and will not be altered unilaterally by the government.
Eurostat data shows Portugal's employment rate grew by 2.2% year-on-year in the second quarter, the third-highest increase in the EU. Compared to the previous quarter (Q1 2026), Portugal saw the largest employment growth in the EU at 1.0%.
The Ministry of Labour reported that the 'Primeiro Pessoas' digital modernization program has reduced in-person visits to Social Security offices by 16% over the last 18 months, representing four million interactions shifted to digital channels. The ministry emphasized that digital tools, such as new benefit simulators and virtual payment methods (IBAN, MB Way), are intended to reserve physical appointments for complex cases or vulnerable individuals.
The government has introduced new rules for public schools regarding teacher recruitment, overtime, and the accumulation of functions. These include new requirements for hiring degree holders (licensees) who do not meet initial criteria, a digital platform (AGSE/SIGRHE) for declaring availability for overtime and secondary functions, and a monthly 750-euro salary bonus for teachers who are eligible for retirement but choose to continue teaching in high-need areas.
A government support measure that allowed young people to combine their salary with a portion of unemployment benefits aimed to reach 15,000 people but was used by fewer than 400.
Between January and July 2026, the tax authority collected 131.6 million euros in late-payment and compensatory interest, surpassing the total 96 million euros budgeted for the entire year. This amount represents a 45% increase compared to the same period in 2025 and reflects enhanced efficiency in coercive debt recovery.
The European Commission is proposing a 'European Diploma' to simplify professional recognition across EU countries. This initiative aims to eliminate the current, often lengthy process of requesting academic and professional equivalencies to work in one's field of training in another member state.
The new 2026-2028 Global Reference Framework (QGR) for the NHS (SNS), published this Friday, limits staff increases to 1.4% of the total existing workforce as of December 31, 2025. The Portuguese Nurses' Union (SEP) reports this cap effectively prevents the hiring of approximately 3,000 newly graduated nurses and notes the document was published nine months behind schedule.
The Minister of Justice stated that the backlog recovery process at the Registries (IRN) has already cleared 26,000 pending cases since June, aiming for normalcy by the end of 2026. Separately, a new government decree revises salary tables for registrars and registration officers, with payments expected in November featuring retroactive effects to July 1, 2026.
The State is seeking the repayment of salaries from school technicians, while legal experts are challenging the retroactive removal of professional service points from 2017 and 2018. The legality of both the clawback of funds and the removal of these points is currently under scrutiny by labor and administrative law specialists.
ApexBrasil and Sebrae have opened applications for the 2027 startup incubation program in Lisbon, targeting 20 tech-based companies. Candidates must have an existing product/MVP, have generated revenue or received investment between June 2025 and June 2026, and be able to commit a representative to stay in Portugal for three months starting in March 2027. Applications close on September 18, 2026, at 11:00 PM (Brasília time).
Approximately 4,000 PSP officers currently eligible for pre-retirement under the police statutes are being required to remain in active duty due to recruitment shortages. A joint dispatch from the Ministries of Finance and Internal Administration limits the number of officers allowed to enter pre-retirement annually, often restricted to the number of new recruits, a quota that is not being fully met.
The Volkswagen Group plans to close factories in Germany for the first time in its history as part of a major cost-cutting strategy. The article confirms that the Autoeuropa plant in Portugal is not affected by these measures.
Portugal has reached record employment levels, yet youth unemployment is rising and now ranks among the highest in the European Union.
Reports indicate that children (688) now outnumber women (681) in domestic violence shelters for the first time, and youth unemployment has reached 20.1%, significantly higher than the EU average of 15.1%. Additionally, housing credit demand remains high despite the new Bank of Portugal rules that took effect on August 1.
The Mitsubishi Fuso factory in Tramagal resumed operations on August 24 following a summer break and a period of reduced activity that included layoffs in July. The company reaffirmed the factory as its central European production hub despite its recent integration into the ARCHION Group, though it did not confirm reports regarding specific daily production volumes.
The Volkswagen Group is considering a restructuring plan that could include the extinction of the Seat brand by 2029, alongside factory closures and up to 100,000 job cuts globally. No final decisions have been made, and the group must negotiate these changes with stakeholders and workers' representatives. Volkswagen's Autoeuropa facility in Portugal is currently excluded from these potential restructurings.
New or reaffirmed labor rights provide special protections to employees who are victims of domestic violence. These include the right to flexible working hours, the possibility of transferring workplaces, and the right to justify absences for legal or medical appointments related to the situation.
Data from the latest tax cycle shows that over 1.7 million taxpayers had a tax bill (tax owed to the government) rather than a refund. The number of people having to pay remained stable compared to 2025, following a significant increase in the previous year.
The transposition of the EU salary transparency directive into national law has not yet entered into force, and there is no official timeline for its implementation. Both employer associations and unions are currently seeking revisions to the government's initial proposal.
New data indicates that the specific course of study is a stronger factor in employment prospects than the university itself. Graduates in fields such as Engineering show significantly higher employment rates, while degrees in Arts, Psychology, Natural Sciences, and Humanities are associated with a higher likelihood of unemployment.
Teachers who choose to delay retirement to continue teaching in schools with staffing shortages will receive an additional 750 euros per month, provided no other teachers are available to cover the classes. The decree-law (175/2026) also expands hiring criteria to allow degree-holders (post-Bologna) to teach if professional candidates are unavailable, and confirms a ban on smartphones in 3rd-cycle schools, which must implement internal regulations by January 2027.
The new decree-law allows schools to hire retired teachers and post-Bologna degree holders to address staffing shortages. Retired teachers who delay their retirement to continue teaching in designated high-need areas (Greater Lisbon, Setúbal Peninsula, and the Algarve) will receive a 750 euro monthly bonus, provided no other qualified candidates are available. Additionally, the rules now allow for the hiring of graduates whose degree matches the subject area they are to teach, and a separate decree extends the ban on smartphones to the 3rd cycle (middle school) with schools having until January 2027 to update internal regulations.
The article explains that there is no public indicator to predict if a company will pay salaries on time, as data on late payments to suppliers does not equate to late payroll. It advises candidates to seek clarity during interviews regarding pay dates, base salary versus variables, and to ensure these terms are formally documented in the employment contract.