What changes in 2025: measures that will have an impact on the lives of Portuguese people

What changes in 2025: measures that will have an impact on the lives of Portuguese people

In 2025, the Portuguese Government will implement a series of measures that will have a direct impact on the lives of citizens and the country’s economic development. These changes will affect families, the job market, health, education and many other areas of society.

The IRS Jovem will be extended to cover the first 10 years of work income, doubling the current period, and will no longer depend on academic qualifications. The eligible income limit will also be increased to around 28,000 euros per year, benefiting more young workers. To alleviate the tax burden, the IRS brackets will be updated by 4.62%, which will allow the minimum wage to become exempt from IRS, and the limit for the first bracket will be raised to 8,059 euros.

Another important point is the increase in the minimum wage, which will rise to 870 euros, representing an increase of 50 euros compared to the current value. Furthermore, the Government will encourage companies to award productivity bonuses exempt from IRS and Social Security, up to 6% of the annual base salary. In addition, companies that increase their employees’ salaries will be able to deduct these increases from their IRC, which could encourage improvements in workers’ remuneration.

Pensions up to 3 SSI (Social Support Index) will have an additional increase in 2025, to support the most vulnerable elderly, and the Solidarity Supplement for the Elderly will be reinforced with an increase of 30 euros, totalling 630 euros per month. VAT on baby food, such as baby food and follow-on formula, will also be reduced to 6%, which will help families with children.

Other measures include the reduction of the IRC from 21% to 20% and the updating of the IMT (Municipal Tax on the Onerous Transfer of Property) brackets by 2.3%, particularly benefiting young people up to the age of 35 who buy their first home. The Government will also reinforce support for accommodation for displaced students and invest in the creation of more student residences, ensuring better living conditions for young people in training.

The Government is also creating incentives for companies that offer health insurance to their workers, allowing them to deduct up to 20% in IRC. Furthermore, there will be a reinforcement of the palliative care network and the hiring of professionals for INEM and the SNS, with the aim of ensuring better care for the population.

In relation to health, the changes include the free distribution of menstrual hygiene products in schools and health centres, a measure that aims to promote equality and access to health. A home support system for the elderly will also be created, integrating health care and social support, and support for informal caregivers will be reinforced, through the creation of a caregivers’ grant that guarantees the right to rest for those who care for dependent family members.

Other measures include the creation of a public guarantee for young people up to the age of 35 who want to buy their first home, and the implementation of a program to support the electrification of energy consumption in families, with the aim of improving energy efficiency in homes.

The Government will continue to promote reforms in the health sector and guarantee quality public schools, from daycare to university, without forgetting professional and technological education. There will also be an effort to attract more investment in public housing and combat crime, including drug trafficking and violent crime. The implementation of these measures aims to improve the quality of life of the Portuguese and promote sustainable and inclusive economic growth, ensuring that everyone has access to better and fairer living conditions.