Tax Authority clarifies that salary bonuses exempt from IRS do not increase the tax rate
Some salary bonuses exempt from IRS, such as productivity and performance bonuses, will not cause the tax rate to increase, the Tax Authority clarified. However, there are exceptions.
World Economic Forum signals weakening of the global economy in 2026
The World Economic Forum warns the global economy is expected to weaken in 2026, raising concerns about slower growth and potential policy challenges for governments and markets.
Global growth is expected to slow to 2.6% this year
Forecasts indicate that worldwide economic growth will ease to 2.6% in the current year.
Spain, Portugal, Italy and Greece drive the eurozone economy, says Crédito y Caución
Credit insurer Crédito y Caución reports that Spain, Portugal, Italy and Greece are leading economic growth in the eurozone.
Will the AI bubble burst in 2026?
Economic history teaches that when grand technological promises combine with financial euphoria, the likelihood of crises increases. An opinion by Ricardo Paes Mamede.
The investment map is changing, and Portugal is at the center of this change
Home Business The investment map is changing, and Portugal is at the center of this change The investment map is changing, and Portugal is at the center of this change For decades, large international investment flows have followed predictable patterns.
Cut in withholding tax gives workers an extra €12 to €21 per month
A table published mid‑week reduces the rates, putting more money into workers' bank accounts each month for those who do not receive pay rises in 2026.
'The wage reality in Portugal is frankly distressing': the narrowing gap between the minimum and average wage is 'increasingly dangerous'
Economist João Rodrigues dos Santos analyses the advantages and disadvantages of the new IRS withholding tables which, he says, are likely to bring even more 'uncertainty' to the Portuguese. Highlighting the 'distressing' wage reality in Portugal, the expert draws attention to rising housing prices and the instability of variable interest rates.
Business leaders say they may ask the Government for more time to withdraw millions from the Labour Compensation Fund (FCT)
The president of the Confederation of Tourism of Portugal (CTP), Francisco Calheiros, acknowledges that it is not certain companies will be able to redeem the entire €517 million still in the Labour Compensation Fund (FCT) by the end of this year. He therefore warns that 'it cannot be ruled out that this may...'.
January salaries may increase by up to €22 with new income tax tables
Salaries paid in January could rise by as much as €22 due to updated IRS (personal income tax) tables being applied.
Portugal records the second-largest fall in industrial prices in the European Union
Industrial producer prices fell by 1.7% in the euro area and 1.3% in the EU year-on-year in November, with Portugal recording the second-largest drop (-3.8%) among its European partners, according to data published on Thursday by Eurostat. In the euro area, in November 2025, compared with ...
Unemployment rises in the euro area and EU in November 2025
In Portugal, unemployment fell to 5.7 per cent, compared with 6.6 per cent in November 2024.
CIP forecasts recovery of exports and normalisation of domestic demand in 2026
The CIP expects exports to recover and domestic demand to return to more normal levels in 2026.
Refund of tuition fees remains uncertain. Listen to the 'Ao trabalho!' podcast
The latest episode of the weekly podcast 'Ao trabalho!' examines lingering uncertainty over tuition fee refunds and the implications for pay awards that recognise qualifications. Finance Minister Joaquim Miranda Sarmento’s response on the pay-award question is discussed alongside fast-moving items on labour policy, employment law and the state budget, with analysis of what these developments mean for workers and expats. The short, under-five-minute episode aims to distil key takeaways and policy consequences for those following workplace rights and public spending.
Companies have already withdrawn more than €120 million from the Labour Compensation Fund
Data from the Ministry of Labour, provided to ECO, shows companies have withdrawn more than €120 million from the Labour Compensation Fund (FCT), with the bulk of disbursements used to finance worker training. Employers can still claim roughly €517 million from the fund before the deadline at the end of the year, signalling significant ongoing demand and potential pressure on FCT resources. The pattern of withdrawals highlights how firms are reallocating statutory employer liabilities towards upskilling and may have implications for labour policy and fund sustainability.
📹 New IRS tables increase take-home pay. See the simulations
The IRS withholding tables have now been published and will be applied to salaries and pensions throughout 2026. It is now possible to calculate take-home pay — and according to simulations carried out by EY for ECO, some people will save €22 with the new rates.
IRS 2026: What changes with the new withholding tax tables?
The new withholding tax tables have already come into effect. Paulo Ribeiro Pinto, the Economics editor at Negócios, explains what changes.
Government set to receive interim report on the sustainability of Social Security this month
The Secretary of State for Social Security said this Wednesday that a meeting with the working group set up to study the sustainability of Social Security is scheduled “for the end of this month” for the presentation of the interim report. "At the moment, we have scheduled for the end of this month a meeting with the working group [created to ...
Decathlon Portugal raises minimum salary to €1,000 gross
Decathlon's operations in Portugal have increased their minimum monthly salary to €1,000 before tax.
Government expected to present new proposal on salary bonus shortly
The Finance Minister says the government is reviewing the salary bonus issue and will present a new proposal, without providing further details.
Government will present a new proposal on the pay award shortly
Assurance from the Finance Minister
Unemployment falls to 5.7% as employment rate matches its highs
Official figures show the unemployment rate has dropped to 5.7%, while the employment rate is holding at the same peak levels previously recorded.
SAF-T Invoicing, VAT and Corporation Tax: See January's tax obligations
EContas outlines the key tax and reporting obligations due in January so businesses and households stay compliant with the Tax and Customs Authority (AT) and Social Security (SS). Important January items include the Day 9 electronic communications for IRS (personal income tax), IRC (corporation tax) and VAT, SAF‑T invoicing requirements, VAT returns and payments, and related Social Security filings — all with strict deadlines and penalties for late or incorrect submissions. Use the EContas checklist to prioritise filings, confirm filing channels (electronic transmission), and avoid sanctions.
