Average budgets allocated for salary increases in Portugal are expected to rise from 3% in 2026 to 3.2% in 2027, according to WTW's Salary Budget Planning Report. The study was conducted between March and May 2026 and collected 34,024 responses from companies in 156 countries, with 429 Portuguese organizations participating. These figures represent the planned budgets of the companies surveyed, not a mandatory update for all workers.
Companies are increasingly selective in distributing increases, prioritizing critical roles, scarce skills, strategic workers, and individual performance, at the expense of generalized increases. The main pressures on company decisions are cost management, cited by 32%, inflation, and fear of recession or weaker financial results, both at 24%. Approximately 30% of companies are already modifying their compensation programs.
Data from the National Statistics Institute shows that the average monthly gross remuneration per worker increased by 5.1% in the second quarter of 2026, compared to the same period the previous year, reaching 1,835 euros. After accounting for inflation, real growth was 1.8%. Also in collective agreements published in July 2026, the average nominal increase in salary tables was 5.2%, potentially covering around 185,860 workers.
The 3.2% figure does not represent a mandatory increase in the private sector, depending on each contract, the company's remuneration policy, and any applicable collective regulation. In the Public Administration, there is a separate regime, with a planned update of 60.52 euros or a minimum of 2.30% for 2027. The forecast should be interpreted as an indicator of the intentions of the companies participating in the study, with the trend that increases will no longer be distributed equally.
