January 20, 2026
New legal updates have recently been published that directly affect the reference values used in payroll processing for 2026.
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New legal updates have recently been published that directly affect the reference values used in payroll processing for 2026. These changes are particularly relevant for companies, Human Resources departments and finance teams, as they affect the calculation of salaries, social benefits and tax treatment.
The Guaranteed Minimum Monthly Wage has been updated to 920.00 €, under Decree-Law no. 139/2025.
This new amount must be reflected in employment contracts and in the payroll runs it applies to from 2026.
The Social Support Index (IAS) now stands at 537.13 €, under Ordinance no. 480-A/2025/1, with effect from 1 January 2026.
The IAS is used to calculate a range of social benefits, legal limits and tax benefits, including specific regimes such as IRS Jovem (the youth personal income tax scheme), making it essential to update it correctly in management systems.
The IRS (personal income tax) withholding tables must be updated in accordance with the Order of 5 January 2026 issued by the Office of the Secretary of State for Tax Affairs, which approved the new tables applicable to employment income and pensions of residents in mainland Portugal, ensuring correct tax treatment and compliance with legal obligations in payroll processing.
To ensure legal compliance in 2026, it is essential that the ERP is correctly updated and configured, ensuring:
In some cases, these updates can be applied automatically; in others, configuration adjustments may be needed, depending on the solution and the setup adopted by the company.
At Openlimits, we continuously monitor the legal and regulatory changes that affect management systems, ensuring that the ERPs we support remain aligned with current legislation.
Our team is available to help with:
👉 Talk to us and make sure your ERP is ready for 2026.
Written by:
Openlimits