Statutory and legislative payroll changes in Portugal, each linked to the page it was checked against. For information only, not legal or tax advice: confirm details with the source before acting. See the terms.
Withholding tables updated 3.51%; rates on brackets 2–5 cut 0.3 points
Effective 1 Jan 2026
The 2026 IRS withholding tables for employment income and pensions raise the bracket thresholds by 3.51% and cut the marginal rates on the 2nd to 5th brackets by 0.3 percentage points versus 2025. Monthly income up to €920 - aligned with the new national minimum wage - is exempt from withholding, and the minimum subsistence threshold rises to €12,880 a year, extending full or partial IRS exemption to more low earners and pensioners.
For the employer
- Confirm payroll software has loaded the 2026 withholding tables published in the Diário da República before the first January pay run.
- No separate filing is needed - the marginal-rate model (in force since 2023) applies each bracket only to the income exceeding the prior threshold, computed automatically.
For the employee
- An employee earning at or near the minimum wage now has no IRS withheld at all; most other employees see a small net pay increase from the 0.3-point rate cuts on brackets 2–5.
Source: Orçamento do Estado - Tabelas de retenção na fonte do IRS para 2026 · Last verified 1 October 2026
Salário mínimo nacional rises €50 to €920
Effective 1 Jan 2026
From 1 January 2026 the salário mínimo nacional on the mainland (Continente) is €920 gross a month (€12,880 a year), €50 more than in 2025. After the 11% Segurança Social contribution, a minimum-wage worker on the mainland takes home €818.80 a month.
For the employer
- Raise any mainland employee paid below €920 to at least €920 gross from the January 2026 pay run.
For the employee
- Minimum-wage workers get an automatic €50 monthly increase from January 2026.
In practice: €920 - 11% Segurança Social (€101.20) = €818.80 net a month.
Source: DECO PROteste - Salário mínimo para 2026 · Last verified 1 October 2026
New Segurança Social contribution model replaces self-filed DMR
Optional during 2026; mandatory 1 Jan 2027
Decreto-Lei 127/2025 of 9 December introduces a new model in which Segurança Social calculates the monthly declaration from data the employer communicates. The employer confirms or corrects it by the 20th of the following month (currently the 10th), silence counts as acceptance, and contributions are paid between the 1st and 25th of the following month. Changes to permanent pay must be communicated by the 10th of the following month via Segurança Social Direta or the Plataforma de Serviços de Interoperabilidade. Employers may opt in at any time during 2026; from 1 January 2027 the model is mandatory for all employers.
For the employer
- Once you opt in, the DMR can no longer be sent in the current format - plan the switch with your payroll provider.
- Set up processes to communicate changes to permanent pay by the 10th of the following month, and to review the pre-calculated declaration by the 20th.
- Prepare for mandatory use from 1 January 2027.
For the employee
- No direct payslip impact; new hires must be communicated through Segurança Social Direta, including NISS and permanent remuneration.
Source: Littler Portugal - Novo modelo de comunicação à Segurança Social · Last verified 1 October 2026