According to the latest edition of 'Salary Budget Planning' from the consultancy and brokerage company WTW, inflation is the main factor guiding salary budgets, being cited by almost three quarters (72.8%) of employers in Portugal (85.9 % in 2023).

This average reference increase of 4.0% of salaries expected in the private sector is below the 5.0% reference indicated in the Reinforcement of the Medium-Term Agreement for the Improvement of Income, Wages and Competitiveness, signed between the Government and the social partners in October 2023, but which is not binding.