What will change in the lives of Portuguese in 2024! Only good things…

Entering a new year always brings a host of changes. 2024 is approaching and we've already warned you to prepare your wallet… but there's also a lot of good news!

According to information available on the government's website, several measures will come into force in 2024 that will increase income and enhance the quality of life of Portuguese.
salary

The nominal rise in workers is scheduled to reach 5% in 2024, as a result of strengthening the medium-term agreement to improve income, wages and competitiveness, signed between the government and the social partners.
The national minimum wage has risen by €60 a month and rises to €820, the biggest increase ever.

Taxes

Workers will pay less than the IRS.  The tranches are updated by 3% and the marginal percentages decrease from the first tranche to the fifth tranche.  You can now see the withholding tax tables here.

Young

Students up to the age of 35 who have completed a bachelor's or master's degree, from 2023 onwards, and reside to work in Portugal, will be entitled to a salary bonus to enhance their qualifications. 697 per year in undergraduate courses;  1500 per annum for Master’s degree – find out more here.
The IRS cuts more for young people.  In 2024, young people will benefit from a greater share of their income tax-free.  For example, in the first year of work, income up to €20,370.4 is completely exempt.
Free tickets for students up to 23 years old.
Young people who have finished or completed Year 12, between 2023 and 2025, can travel for free for 7 days, with unlimited train travel, and sleep 6 nights in the youth hostel network.

pensions

Increase pensions by 5% to 6%.
The Solidarity Supplement for the Elderly (CSI) increased by 12.8%, increasing the annual reference value from €5,858.63 to €6,608.00.

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Family allowance

The family allowance has increased by €22 per month (compared to 2023) and an increase of €33 per month in the case of single-parent families (compared to 2023).
The reference value of the child guarantee (supplement to the family allowance) rises to 122 euros per month


The unemployment

Those who have been unemployed for more than 12 months will be able to pool wages with unemployment benefits, as an incentive to return to the labor market.
Unemployment benefit with increased minimum (to 586 euros) and maximum (to 1,273 euros).

Public Administration

Public administration workers will receive an income increase through a 5.4% wage increase, with salaries updated between 6.8% and a minimum of 3%.
They will be able to advance more quickly in their careers, either through the reduction in necessary points (from 10 to 8), provided for in the new SIADAP, or, in the case of workers affected by the freeze, through the career accelerator which will allow them to advance with 6 points.
Senior technicians will more easily reach the top of their career, combining the reduction in the number of rewarding positions and the recognition of their career, most clearly in the first positions, with a new entry position, allowing workers currently in this position an immediate increase of €263.15.

Digital documents

On January 1, 2024, the system that changes the legal systems for the citizen card, the digital mobile phone key and voter registration will come into force.

With this action, ID.Gov makes all qualifying identity documents or titles publicly available, with their legal validity equivalent to physical documents, without conditions.




Living

Strengthening Porta 65 Jovem, which provides housing at income-friendly prices for young people and which in 2024 will receive the largest allocation ever with a growth of 19.5% compared to 2023, allowing continued support for all candidates.
IRS tax exemption and IMI exemption, within the scope of leases for pre-1990 housing, as well as a landlord compensation mechanism that will take effect in 2024
The home rental expense deduction increases by 20% in IRS terms, to €600.

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education

Teachers assigned to the regions of Lisbon, Vale do Tejo and Algarve, who live more than 70 kilometers from the placement school, will benefit from a subsidy to support accommodation expenses, when permanent housing and occupation costs result in an effort rate greater than 35%.
In 2024, 365 specialized technology centers will be in the implementation phase, which corresponds to an unprecedented investment in infrastructure for vocational secondary education courses.  These centers, in the fields of industry, renewable energy, IT and digital, serve as reference spaces for professional training and adaptation of educational equipment to the current and future needs of companies.  This investment is linked to the elimination of the 5% reduction in funding schedules for vocational courses.

Schools

The program begins, which will invest 1.7 billion euros in the country's educational institutions.  451 schools will be built or rehabilitated and the first interventions will begin in 2024.

University education

Higher education institutions have an increase of €138 million, which will be distributed according to a new funding model.  In addition, the contracts of the first three programs will be implemented with the universities of the Azores and Madeira (located in the outer regions with low demographic pressure) as well as with the Open University.
Direct social action has been strengthened and €70 million has been allocated to the Social Action Fund, the largest tax revenue budget ever and linked to €141 million in community funds.

scientific reseach

The first edition of the FCT-Tenure competition to recruit 1,000 doctoral researchers will be held in 2024, exclusively in permanent positions, ensuring stability in scientific life.

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Cultural incentives

New rules to encourage production within the scope of the Tourism and Cinema Support Fund (which remains with an allocation of €14 million) and new financial incentives for large-scale cinema and audiovisual productions (maximum of €20 million per year)

Security forces

Increase the salaries of GNR and PSP professionals between 3% and 5%, through a strengthening of the MAI budget, amounting to 150 million euros.

firemen

Digital Firefighter Card, a document that allows any firefighter to identify himself as such in any institution, such as hospitals.  The card will now be available digitally on the id.gov.pt app and also in physical form.

fees

New discounts for all vehicles on highways in the interior and Algarve:

30% for light vehicles;
22.6% for transporting goods and passengers during the day, while maintaining the reduction at night, weekends and holidays.



Companies

Improving the system of tax incentives for corporate capitalization will come into effect, within the framework of encouraging the use of equity capital at the expense of the use of debt.  The interest rate increases from the current 4.5% (5% if SMEs or medium-capitalization SMEs) to a variable rate with reference to the 12-month Euribor rate, plus a margin of 1.5 percentage points (2 basis points if small companies (medium or small-capitalization)  The benefit is increased by 50% in 2024 and the reference period is adjusted from 10 to 7 years.

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