Portuguese public sector trade unions have demanded wage increases above agreed levels for 2027 as inflation rises past three percent.
Union representatives presented their proposals for next year to the government on Tuesday, but officials listened without expressing any position or intention.
Under an existing multi-year agreement, public sector salaries are scheduled to rise by 2.30 percent in 2027, with a minimum increase of 60.52 euros. However, union leaders argued that the deal must be revised because inflation in Portugal has now exceeded three percent.
The Trade Union Federation of Public Administration and Public Purpose Entities, known as Fesap, requested a minimum salary update of 6.5 percent or 95 euros for all public sector workers.
Fesap, which is led by Secretary-General Jose Abraao, also proposed raising the public service base remuneration floor to 1,050 euros in 2027.
In addition, Fesap renewed its demand from last year for the tax-free daily food allowance to be increased to 10 euros. The current agreement stipulates that the daily meal allowance, which stands at 6.15 euros, will increase by 15 cents per year until 2029.
Following the initial meeting with the Secretary of State for Public Administration, Marisa Garrido, Abraao told reporters that the existing agreement explicitly allows for renegotiation.
Abraao said that the agreement specifies that if circumstances change, the parties will revisit and seek to improve the accord they have signed. He said that this is what the unions are attempting to do.
Abraao argued that in moments like these, governments must be solid enough to help those who need assistance. He noted that the current economic context differs from what was expected when the agreement was signed, namely due to the rising cost of living.
Demands from STE and Frente Comum
The Union of Public Administration Workers, known as STE, also called for pay updates above five percent, going beyond the 2.3 percent outlined in the multi-year deal.
STE submitted a package of demands for 2027 that includes a five percent pay and pension increase on top of the 60.52 euros or 2.3 percent provided in the current agreement. The union also urged the government to advance the scheduled meal allowance increase to 6.45 euros.
Meanwhile, the Frente Comum union federation presented even larger wage demands for public employees across the sector.
Frente Comum advocated a salary increase of no less than 15 percent for all public sector workers, with a guaranteed minimum rise of 150 euros.
Frente Comum also called for the Public Administration Base Remuneration floor to be raised to 1,150 euros, taking effect on 1 January 2027.
Government talks and upcoming finance minister meeting
The unions formally delivered their proposals during the first meeting of the annual negotiation process for public sector wages.
The initial round of talks was led on the government side by Public Administration Secretary of State Marisa Garrido, who listened to the submissions without revealing any executive intentions.
According to Fesap Secretary-General Jose Abraao, a second negotiation meeting has been scheduled for the end of next week or the beginning of the following week.
Finance Minister Joaquim Miranda Sarmento will attend the upcoming negotiation session as talks continue over the 2027 pay adjustments.
Public sector wage negotiations in Portugal establish pay conditions for hundreds of thousands of civil servants, healthcare workers, teachers, and administrative staff across state institutions. Multi-year agreements between the central government and major labor confederations provide financial predictability, but provisions allow terms to be reopened when economic benchmarks such as inflation diverge significantly from original forecasts.
