OE2024 will be approved: What measures will move forward?

Political and financial instability? Enter 2024 with an organized wallet, reviewing your credit and/or insurance portfolio. Ensure savings on these products, lowering installments with Poupança no Minuto: Contact us to find out more.  

But first, understand what to expect from the political landscape in the coming times and the planned measures for the next year.  

Parliament dissolved, but the 2024 State Budget already presented moves forward.

The President of the Republic, Marcelo Rebelo de Sousa, decided to dissolve the Assembly of the Republic and call for early elections on March 10, 2024, after the resignation of the Prime Minister, António Costa.

Regarding the State Budget for 2024, Marcelo wants to move forward, publishing the decree only when the final global approval is given on November 29, since it already has guaranteed approval by an absolute majority of the PS.

With this decision, the 2024 State Budget will come into effect on January 1 of the next year, already in force during the new elections and the selection of the new PM.

At this moment, the new Government may present a rectifying proposal for the State Budget for 2024, as the President indicates.

The objective, according to Marcelo, of the approval of the OE already presented is to "meet the expectations of many Portuguese and accompany the implementation of the PRR [Recovery and Resilience Plan] that does not stop, nor can it stop with the transition from one government to another or later with the dissolution of the Assembly of the Republic."

What are the measures already guaranteed to move forward?

Through the President of the Republic's decision on the next steps, it is expected that all measures of the OE2024 will move forward. However, some have already received the "ok" from the Government, such as the salary increases of the Public Administration and the national minimum wage. Source

Public Sector Salary Increases

The Council of Ministers has already approved the decree-law that "establishes the measures to enhance the value of employees who perform public functions, amending the remuneration base and updating the value of public administration salaries for 2024, within the framework of salary negotiation compliance," as reported in a News article on Notícias ao Minuto, quoting the Council of Ministers' statement.  

The update in question, according to the Government, goes "beyond the commitment made in the Multiannual Agreement for the Valorization of Public Administration Workers in 2022." Note that "increases between 6.8% at the remuneration base of the Public Administration up to 3% at the top" are planned, explains the news article.

Increase in the national minimum wage 

In addition, the increase in the national minimum wage has already been approved by the Council of Ministers, rising from €760 to €820, starting on January 1st. According to the Government, this approval stems from the desire to fulfill "commitments made within the scope of the Medium-Term Agreement for Income, Wages and Competitiveness Improvement," as indicated in the press release issued by the Government quoted by Notícias ao Minuto.

The increase in question is based on "an increase of €60 per month and corresponds to the largest increase in the guaranteed minimum monthly wage ever seen, 7.9%," it can be read.

Remember that the Prime Minister's resignation occurred following the Public Prosecutor's investigation in the Supreme Court of Justice, which includes António Costa as a suspect in a process regarding lithium and hydrogen deals.

At a time when we are faced with political instability and already established financial instability: Learn how you can save on your loans and/or insurance. Discover options to lower your payments with these products, contact Savings in a Minute.