How the 2027 Budget will affect family finances

The government's proposed 2027 State Budget sets the national minimum wage at 970 euros per month, up from the current 920 euros. IRS tax brackets will be updated by approximately 3.9%, which aims to prevent tax bracket creep, while the tax-exempt threshold (mínimo de existência) will also rise to 970 euros per month. These measures are part of a proposal currently undergoing parliamentary review.

Why it mattersIf you are a worker in Portugal, the increase in the national minimum wage and the 3.9% update to IRS tax brackets will impact your take-home pay and tax liability starting in 2027, provided the budget is approved.

CGTP calls pension supplement a "panacea"

The government has published Decree-Law no. 201/2026, which grants an extraordinary, one-time pension supplement to be paid in December. Beneficiaries are retirees (invalidity, old age, and survival) whose total monthly pension income is equal to or less than three times the Social Support Index (IAS), which equals 1,611.39 euros; the payment ranges from 100 to 200 euros and is exempt from IRS withholding tax.

Observador· 1h agoRead original ↗

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Cost of Living

Portuguese 'have higher salaries and are paying less IRS', says Finance Minister

Finance Minister Joaquim Miranda Sarmento stated that tax relief measures, including updates to IRS brackets in the 2027 State Budget, mean taxpayers are saving hundreds of euros per year compared to 2023. The Minister confirmed that the government intends to maintain fuel tax discounts linked to price fluctuations in 2027, rather than implementing indiscriminate price cuts.

SIC Notícias· 4h agoRead original ↗

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How the 2027 Budget will affect family finances

This update is from Bica

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CGTP calls pension supplement a "panacea"

Portuguese 'have higher salaries and are paying less IRS', says Finance Minister

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