Portugal Plans Progressive Minimum Wage Increases Through 2028

Several countries are adjusting wage and salary policies in their 2026 budgets to address labor market challenges and improve worker earnings. In Portugal, the government’s 2026 State Budget proposes a continued gradual increase in the national minimum wage, paid over 14 months, which will boost workers' disposable income despite social security deductions, while the public sector minimum wage will slightly exceed the private sector's. The Portuguese Communist Party has countered with proposals to increase the minimum wage substantially to 1,050 euros, raise pensions by at least 5%, and eliminate tuition fees, reflecting concerns over significant purchasing power losses since 2010. Germany plans to raise its hourly minimum wage in two steps to 14.60 euros by 2027, aiming to benefit up to 6.6 million workers, though critics warn of potential job risks due to increased labor costs amid recent economic contractions. Tunisia’s 2026 budget includes a 3.6% increase in salary expenditure, supporting the regularization and recruitment of over 50,000 public sector jobs, particularly in education and health, alongside efforts to optimize personnel distribution and budget stability. Malta is introducing subsidies for private sector pay rises, covering 65-80% of salary increases for workers with at least four years at the same company, to help firms retain skilled employees amid labor shortages, alongside increased caps for business investment support programs.