Prime Minister Luís Montenegro stated it is too early to approve a permanent pension increase, though he remains open to one-off supplements if public finances allow. During a parliamentary debate, the Socialist Party (Partido Socialista or PS) leader José Luís Carneiro urged the government to prioritize those on minimum pensions facing high living costs.

Socialist Party (Partido Socialista or PS) Secretary-General José Luís Carneiro recently accused the government of overseeing the second-highest tax burden in 15 years. Prime Minister Luís Montenegro disputed the claim during a parliamentary debate. Official data from the National Statistics Institute (Instituto Nacional de Estatística or INE) confirms the tax burden, defined as the weight of tax and social contribution revenues in the GDP, reached 35.4% in 2025.

Approximately 70% of applications for support measures under the Regressar Programme have been approved, according to official data. The Institute for Employment and Vocational Training (Instituto do Emprego e Formação Profissional or IEFP) reported that 6,932 applications were submitted in the most recent period ending March 31. Since the programme began in 2019, over 25,000 applications have been processed.

Taxpayers have until the end of today to dispute expense values on the Finance Portal (Portal das Finanças) before the income tax (IRS) filing period begins on Wednesday. The President of the Republic also approved the expansion of the automatic tax return (declaração automática) to include more young taxpayers under the revised Youth IRS (IRS Jovem) rules. Experts warn that changes to withholding tax (retenção na fonte) tables last year may result in smaller refunds for many households.

The Ministry of Finance (Ministério das Finanças) confirmed that young people benefiting from the youth tax regime (IRS Jovem) will now be covered by the automatic tax return (IRS Automático). This change, effective this year, removes the requirement for manual filing for eligible taxpayers under the “Modelo 3” form. The measure aims to simplify the tax settlement process for younger residents.

Taxpayers have until Tuesday, March 31, to contest the value of expenses recorded by the tax authority for 2024 income. Residents should check the Portal das Finanças to verify that health, education, and general family expenses are correctly listed before the official tax filing period begins on April 1. This is the final opportunity to ensure all tax deductions (deduções à coleta) are accurately applied to the upcoming IRS return.

The Tax and Customs Authority has introduced changes to the personal income tax (Imposto sobre o Rendimento de Pessoas Singulares or IRS) return forms for young workers. Starting April 1, those eligible for the Youth IRS (IRS Jovem) must use a new field in Annex A (Anexo A) to opt into the updated tax regime. Young tax-paying residents should ensure they use the correct codes to benefit from the significant tax exemptions available under the new rules.

Fitch Ratings kept Portugal's sovereign rating unchanged at A but upgraded the outlook to positive, citing expectations that public debt will decline significantly over 2026–2029 thanks to prudent fiscal policy. The move follows a similar outlook upgrade from S&P at the end of February, suggesting rating agencies are seeing lower medium‑term deficits. The change could help Portugal's borrowing costs and influence investor confidence; residents who follow government borrowing and interest‑rate trends should note possible knock‑on effects.

The Institute for Employment and Professional Training (Instituto do Emprego e Formação Profissional or IEFP) approved 390 applications for an extraordinary fund to maintain jobs and support self‑employed workers hit by storm Kristin, allocating just over €11 million. The measure complements parliamentary emergency support for storm‑affected workers and aims to preserve payrolls in damaged businesses. Employers and affected workers should consult IEFP guidance on eligibility and payments.

Allocation of pensions that combine contributions to Social Security and the Caixa Geral de Aposentações remains complex and currently averages about seven months. The president of the Social Security Information Institute told ECO that processing times should improve and that changes will take effect by June. The backlog and complexity affect retirees whose records span both regimes, and the institute is promising faster decisions in the coming months. Those awaiting joint pensions should keep documents ready and monitor communications from Social Security (Segurança Social) and their pension offices.

The government raised the minimum wage to €920 for 2026, up €50 from €870, and announced support measures for businesses and workers including simplified layoff rules and expanded income support. The change affects paychecks from next year and is part of a broader income agreement the government cites to boost household income. Low‑paid workers will see higher take‑home pay, while employers should plan for higher payroll costs and check whether sector agreements or contracts change. Workers and small employers should watch official calendars for the implementation date and payroll guidance.