Salary increases in Portugal are expected to remain moderate in the coming years, with average company budgets at 3% in 2026 and showing a slight increase to 3.2% in 2027. This conclusion comes from the latest Salary Budget Planning Report, by consulting firm WTW, which points to an increasingly selective strategy in the allocation of increases, prioritizing critical talent and strategic roles. More than half of the surveyed companies (53%) state they have not changed the salary budget initially set for 2026, signaling greater rigor in financial planning.
According to the study, Portuguese organizations continue to adopt a prudent approach to salary policy management. Among the main factors influencing decisions regarding salary increases are cost management, cited by 32% of organizations, followed by inflation (24%) and the expectation of a possible recession or less favorable financial results (24%). Sandra Bento, Director of Rewards Data Intelligence at WTW Portugal, notes that companies are prioritizing critical roles, scarce skills, key talent and top-performing employees, rather than generalized increases.
The study also reveals a relatively stable labor market. Approximately 85% of workers remained in their respective organizations and only 7.7% of companies increased their headcount. This scenario indicates that many organizations are focusing efforts on retaining existing professionals. To strengthen the value proposition for employees, companies are also investing in initiatives that go beyond remuneration, such as improving employee experience (43%), strengthening training and development opportunities (43%), and a greater focus on diversity, equity and inclusion policies (40%).
The Salary Budget Planning Report is produced twice yearly by WTW's Rewards Data Intelligence team. The edition conducted between March and May 2026 gathered responses from 34,024 companies across 156 countries. In Portugal, 429 organizations participated, whose data serve as the basis for analyzing the projected evolution of salary increases and compensation strategies in the domestic market.
