Cost allowances in the public sector increase by 5% already in November

The government will implement a 5% increase in cost allowances for public administration starting in November, but has not shown willingness for higher salary increases for 2027. Rosa Sousa, president of the STE, confirmed this after a meeting at the Ministry of Finance in Lisbon. The increase will be effective before negotiations on cost allowances begin. The government also presented a rescheduling of various matters related to the Multiannual Agreement for the Valorization of Public Administration Workers (2026-2029), with the review process for cost allowances starting in January instead of the previously planned second quarter of 2026.