Minimum wage and tax policy updates proposed in Portugal and Brazil

In Portugal, the 2027 State Budget proposal includes adjustments to personal income tax (IRS) to align with the projected increase in the national minimum wage. The minimum existence threshold will rise from 12,880 to 13,580 euros annually, protecting those earning up to 970 euros per month from income tax. Additionally, the limits for the nine IRS tax brackets will be updated by 3.88%.

In Brazil, discussions regarding minimum wage policy highlight the impact of real value appreciation. Analysis suggests that if the minimum wage were adjusted only by inflation since 2004, rather than through current valorization policies, the 2026 value would be approximately R$ 852—significantly lower than current levels. Economic experts and labor organizations note that maintaining real increases is vital for domestic consumption and the stability of small businesses.