Following the approval of the PSD and CDS measure, the salaries of Portuguese politicians, which had been penalised by 5% since the troika was in operation in Portugal, will now see increases of up to €650 before all the deductions required by law are applied.

For example, according to ECO, Marcelo Rebelo de Sousa will receive a salary of 11,718.20 euros per month. In contrast, the President of the Assembly of the Republic, Pedro Aguiar-Branco, will receive 9,374.55 euros, 80% of Marcelo Rebelo de Sousa's salary, 525 euros more than the previous year. As for the Prime Minister, his salary should correspond to 75% of the salary of the President of the Republic. Luís Montenegro therefore receives €8,768.65 a month. However, the presented values refer to politicians' salaries before paying IRS, social security taxes and ADSE - the health insurance to which all public workers are entitled, whether in politics or not. Therefore, for example, Marcelo Rebelo de Sousa's salary of over €11,000 is reduced to approximately €6,000, reveals ECO.

In the case of ministers, who receive 65% of the salary of the President of the Republic, the increase will be €427. The secretaries of state, on the other hand, will receive an increase of €389, respectively €7,616.83 and €6,779.81, after deductions, according to ECO's calculations. Parliament's vice-presidents will receive a €315 increase, earning €5,321.34 at the end of the month. MPs, who receive 50% of the President of the Republic's salary, will receive a €293 increase, totalling a monthly salary of €4,185.07. In the case of members of parliament who work exclusively for the Parliament, the increase will be higher, with the salary totalling €4,603.58.

Extra values

As well as ending the 5% penalisation of salaries, the government has reinstated the payment of subsistence allowances for accommodation, travel and meals in individual cases. From 2025 onwards, not only government leaders but also members of their cabinets will be able to benefit from this support, which was also withdrawn at the time of the Troika. However, the government revealed that the allowances would be limited and would follow rules that would soon be defined by the Ministry of Finance and the Presidency.

Each political actor could receive 40% of their salary in subsistence allowances, adding €2,678.44 to Pedro Aguiar Branco's salary, for example. In the case of the Prime Minister, his salary could then reach €8,768.65 with no discounts per month, and he would then be subject to all the taxation described in Portuguese law.

City Councils

The end of the penalty will also benefit mayors, as well as their councillors, who fulfil their duties on a full-time basis, as it is possible to be part of a political body on a part-time basis if you belong to a City Council.

The salaries of mayors vary according to the number of registered voters in the municipality they lead. For example, the mayors of Lisbon and Porto receive 55% of Marcelo Rebelo de Sousa's salary, which corresponds to €4,603.58, according to data published by ECO. To this salary, as with those who attend the Assembly of the Republic, are added representation expenses, which correspond to 30% of their salary. This amounts to a gross salary of €5,984.10.

In the case of municipalities with more than 40,000 voters, the mayor receives 50% of the President of the Republic's salary, plus representation expenses. Municipalities with between 10,000 and 40,000 voters receive 45% of Marcelo Rebelo de Sousa's salary, while municipalities with less than 10,000 voters receive a total of €4,352.48 gross, after adding representation expenses.

Are the adjustments fair?

André Azevedo Alves, a professor at the Institute of Political Studies at the Catholic University, told ECO that the increase in salaries is not enough, given the roles played by politicians. However, considering the country's economic outlook, the expert reveals that he understands the reason for some public indignation as a result of the increases.

António Costa Pinto, professor of Political Science and researcher at the Institute of Social Sciences also agrees with André Azevedo Alves, pointing out that it is always difficult for politicians to increase their salaries, "when there is strong anti-party sentiment", as quoted by ECO. According to the expert, there is a fear of losing popularity among voters.

Will the deputies keep the money they receive?

Although it seems like an attractive measure, not all of the deputies present in Parliament have approved the increase in their salaries. Parties such as Livre and CHEGA have revealed that they will forego the salary increase and use it for purposes that will support the population.

In the case of Livre, according to ECO, the surplus from deputies' salaries will be used to support education. The party intends to create a scholarship, opening a bank account to which the amounts relating to the salary increase will be transferred.

In the case of CHEGA, the extra 5% of the salary will be given to charity institutions of the choice of the political actors representing the party. The party intends to communicate with the financial services of the Assembly of the Republic so that operations can be speeded up as soon as possible.

The Bloco de Esquerda (BE), which also voted against the measure to increase politicians' salaries, reveals, according to ECO, that it is common for BE’s deputies to give part of their salary to the party. Therefore, the increase will be used for the same purpose - to fund BE's political activity.

The Liberal Initiative (IL) voted in favour of ending the 5% penalty on politicians' salaries. As such, it will not forego the increase that will be given to deputies and other political actors who represent the party. However, IL has previously been against ending the penalty, saying that politicians' salaries should be granted in line with the growth in the average Portuguese salary.

The Portuguese Communist Party (PCP) abstained from approving or rejecting the measure but revealed that the salary increase would have no impact on the lives of elected party members. Elected members of the PCP always receive the same salary. In other words, anyone who works for the PCP continues to receive the salary they received in their previous profession. This means that a member of parliament, for example, who was paid €1,000 before being elected, during their professional activity, will hand over the difference in his salary as a member of parliament to the party. This ensures that he continues to receive the salary he always received before his political activity.

The law was approved in the Assembly by the PSD and CDS parties, who outlined the bill, which received favourable votes from the Socialist Party and PAN.

Author

Deeply in love with music and with a guilty pleasure in criminal cases, Bruno G. Santos decided to study Journalism and Communication, hoping to combine both passions into writing. The journalist is also a passionate traveller who likes to write about other cultures and discover the various hidden gems from Portugal and the world. Press card: 8463. 

Bruno G. Santos