The Portuguese government agreed to increase daily travel allowances (ajudas de custo) for public administration workers by 5% starting in November. However, during negotiations with unions including the Public Administration Technical Staff Union (Sindicato dos Quadros Técnicos do Estado or STE), the Ministry of Finance refused to negotiate higher general salary increases for 2027 beyond planned raises of 2.3% to 6.5%. STE president Rosa Sousa confirmed that negotiations on broader per diem reforms will begin in January.
Government Raises Civil Service Allowances but Caps Wage Hikes
Thursday, 12 November 2026AI summary
Context & Explainers
Daily expense allowances (ajudas de custo) are statutory payments made to employees in Portugal to reimburse travel, meal, and lodging expenses incurred while performing work duties away from their standard workplace. While governed by strict public sector tables, private employers also adopt these rates as the benchmark for tax-exempt travel stipends under Portuguese tax law. For workers, these payments offset business travel costs without counting as taxable salary up to legal limits.
4 sources
- Government commits to a 5% increase in daily allowances starting in November, says STErtp.pt ·
- Per diem allowances for civil servants to increase by 5% in Novemberpublico.pt ·
- Public Sector: "Door seems closed" to higher salary increases, per diems to rise by 5% in Novemberexpresso.pt ·
- Government commits to a 5% increase in subsistence allowances for the Public Administration as early as Novembercmjornal.pt ·
