The government is meeting today with the social partners as part of the Social Dialogue, at a time when trade union confederations are calling for an upward revision of the national minimum wage target, while employers are dead set against.
The official agenda includes monitoring the 2025–2028 tripartite agreement on wage increases and economic growth, the Labour Compensation Fund (FCT) and the Labour Compensation Guarantee Fund (FGCT), among other matters, writes Lusa.
The meeting will take place at the headquarters of the Economic and Social Council (CES), at Palácio das Laranjeiras in Lisbon, at 3.00 pm.
As usual, the minister for labour, solidarity and social security will chair the meeting.
This will be the first social consultation meeting since the government submitted the draft State Budget for 2027 (OE2027) to parliament.
In the report accompanying the proposal, the government states that it “will raise the minimum wage to €970”, as provided for in the agreement signed with the UGT and the four employers’ confederations on 1 October 2024, within the framework of social dialogue.
The government sets the national minimum wage, currently €920, by ministerial decree after consulting social partners.
Trade union confederations have been calling for an increase above the agreed target, arguing, in particular, that inflation is higher than expected, the cost of living has increased – and housing costs have spiralled.
The CGTP is pushing for a minimum wage rise of €1,100 next year; UGT is calling for it to be set above €1,000.
Employers’ confederations have said they consider the current agreement on wage increases and economic growth, particularly regarding the national minimum wage, to remain fully valid. Indeed there are some that cannot even see a reason to implement the increase of another €50 next year, on the basis that the government hasn’t fulfilled its side of the bargain.
As for the government, the minister for labour has repeatedly emphasised that the government “honours what it signs in agreements”, so the figure of €970 in 2027 “is what is on the table”: any change “will have to come from a new agreement” endorsed by all three parties: the government, business confederations and trade union federations (which is clearly unlikely).
The tripartite agreement revised the national minimum wage trajectory upward, providing for annual increases of €50 to reach €1,020 in 2028.
Nevertheless, following the general election on 18 May 2025, the government set a new target in its programme for the entire parliamentary term, aiming for the guaranteed minimum wage to reach €1,100 gross per month by 2029.
Another issue for today’s meeting is the Labour Compensation Fund (FCT), whose redemption period ends at the end of the year.
The fund was set up in 2013, during the ‘troika’ era, and companies financed it through monthly contributions of around 1% of each covered worker’s salary, with a view to paying part of any redundancy compensation in the future.
Since May 2023, with the entry into force of the Decent Work Agenda, companies have stopped contributing to the FCT and have instead used funds accumulated in recent years to finance training, housing support for workers and social facilities, such as crèches and/ or canteens.
Lusa has asked the Ministry of Labour, Solidarity and Social Security for an update on this fund and is awaiting a response. According to a report in ECO online in early July, 74% of the funds remain unclaimed, prompting trade union confederations to consider requesting an extension of the deadline.
Source: LUSA