Government · Lisbon

Portugal raises civil service allowances 5% from November as unions reject 2027 pay offer

The government offered public administration unions a 5% increase in travel and transport allowances from November 2026, but refused to go beyond the multi-year agreement on 2027 salaries. Unions disagree on when the higher allowance will be paid.

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In brief

Lisbon · Portugal
How it came to this
  1. 12 NovGovernment presents proposal to raise allowances by 5% to unions
  2. November 2026Allowance increase takes effect, payment date still unconfirmed
  3. 20 NovPublic administration strike planned, with Frente Comum promising a workers' response
  4. JanuaryRevision of allowances expected to start, moved from the second quarter of 2026

Allowance rise confirmed for November

The Portuguese government presented public administration unions on Thursday, 12 November, with a proposal to raise travel and transport allowances (ajudas de custo) by 5% from November 2026. The Ministry of Finance confirmed the offer in a statement issued after its meetings with the three representative union bodies: the STE, the Frente Comum and the Fesap. The rise is meant to offset the higher cost of travel on official business. The ministry did not say whether the higher amount would appear in November pay or in December pay with retroactive effect to November, and it did not answer a question from Lusa on the point.

Unions read the payment timing differently

The unions disagreed on when the money would arrive. Rosa Sousa, president of the STE, said the increase would be paid in November, while the secretary-general of the Fesap said it was unclear when payments would begin, though the government had guaranteed effect from November. Sousa said the increase would be paid before negotiations on revising the allowances begin, and that revision is due to start in January, a date moved from the second quarter of 2026 under a rescheduling the government presented at the previous meeting.

“We are going to start the review, but they start paying at least 5% already.”

Rosa Sousa

Salary talks stall

The main grievance is the 2027 pay rise. Unions had expected a proposal above the multi-year agreement to match faster inflation, but Rosa Sousa said the government's door seems closed to reinforcing the raises already planned, which range from 2.3% to 6.5%. The Frente Comum coordinator, Sebastião Santana, accused the government of intransigence after the meeting, saying it sat down for its third round without any salary proposal. Santana said the government had told him it had no such possibility under consideration. The Frente Comum dismissed the 5% allowance offer as a diversion manoeuvre, since only an absolute minority of workers receive allowances, which gives it a limited budget impact. The federation also said it would weigh whether to request an additional meeting, after the government suggested this was the last round, and promised a workers' response at a public administration strike planned for 20 November.

What the multi-year agreement sets out

The 2026-2029 multi-year agreement covers more than 350,000 workers in 39 specially valued careers, according to the Ministry of Finance. Under it, pay rises for 2027 are 2.30% with a minimum of 60.52 euros, and base remuneration rises from 934.99 euros to 995.51 euros in 2027. The ministry said it remains committed to the agreement's deadlines, with particular focus on general careers and a new performance management system, and it gave no sign of going beyond the agreed salary updates. Finance Minister Joaquim Miranda Sarmento linked the allowance increase to rising living costs.

Public administration base remuneration, current vs 2027euros
Current base remuneration
934.99 euros
2027 base remuneration
995.51 euros

Data from the article text

“This increase accompanies the rise in the cost of living of public administration workers.”

Joaquim Miranda Sarmento, minister of State and Finance of Portugal

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