Government Proposal Would Lift Allowance Only 1.7 Percent Annually from 2027 to 2029
The Portuguese government’s new proposal to raise the public sector meal allowance by €0.10 per year - from €6.00 to €6.30 by 2029 - has been met with widespread criticism from unions, who say the increase is symbolic at best.
The plan, discussed at a meeting on Thursday between union representatives and Secretary of State for Public Administration Marisa Garrido, would result in an annual rise of about 1.67 percent. For comparison, inflation in Portugal in recent years has been much higher, meaning workers would still lose purchasing power.
A Handful of Nothing
Sebastião Santana, coordinator of the Common Front of Public Administration Unions, described the proposal as “a perfectly miserable increase,” saying it offers “a handful of nothing” to workers struggling with daily costs. The last rise took place in 2023, when the allowance went from €5.20 to €6.00, an increase of roughly 15 percent - far greater than what is now planned.
Electronic Card Meal Allowance Already 70 Percent Higher at €10.20
The difference between public and private sector benefits is also widening. The tax-free meal allowance paid via card - commonly used in the private sector - rose from €9.60 in 2024 to €10.20 in 2025, an increase of 6.25 percent.
That means that even after the planned increases through 2029, public sector employees will still receive almost 40 percent less than many private sector workers. Unions argue that this gap reinforces inequality between sectors and shows the government’s lack of commitment to improving everyday conditions for its staff.
Unions Prepare November 8 March to Protest “Policy That Serves No One”
The Common Front and the CGTP labor confederation are planning new demonstrations, including a national march on November 8, to pressure the government to revise its stance. Santana warned that “all forms of struggle are on the table,” including further strikes if no progress is made.
“The path forward will have to unfold,” he said, noting that last week’s public sector strike was “resounding.” A new negotiation meeting is scheduled for November 12.
Broader Pay Agreement Extends 2.3 Percent Raises Until 2029
Beyond the meal allowance issue, the government’s updated proposal extends the multi-year pay agreement until 2029, maintaining increases of 2.15 percent in 2026 and 2.3 percent in both 2027 and 2028, with the same 2.3 percent proposed for 2029.
The Ministry of Finance says the plan also includes reviews of allowance systems and management pay structures. However, union leaders argue that such modest raises, coupled with a 10-cent meal allowance increase each year, fail to address real wage erosion caused by inflation.
In practical terms, a public worker receiving €6.00 today would get €6.10 in 2027, €6.20 in 2028, and €6.30 in 2029 - a total rise of 5 percent over six years. For many, that means less than the price of a cup of coffee added to their daily meal budget.
Source: RTP Madeira
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