Portugal Begins Refunding University Tuition to 41,000 Young Graduates Under the Prémio Salarial (Wage Premium)
From Monday, Portugal's tax authority starts paying the first installments of the prémio salarial to about 41,000 young graduates, refunding the equivalent of their university tuition. Eligibility runs to age 35 — but whether it can be combined with IRS Jovem remains contested.
Portugal begins paying out one of its more unusual young-worker benefits this week. From Monday, the tax authority starts settling the first installments of the prémio salarial (wage premium) — a scheme that effectively refunds recent graduates the equivalent of the university tuition (propinas) they paid, provided they finish their studies and go to work in Portugal. This first wave covers roughly 41,000 people who signed up in 2024 and who still met the conditions for the 2025 tax year.
The measure was created at the end of 2023 as a retention tool: a way to nudge young Portuguese to build careers at home rather than emigrate, by putting real money back in their pockets in the years just after graduation. It sits alongside — and has repeatedly collided with — the better-known IRS Jovem income-tax break for young workers.
How it works
- Who qualifies: workers up to 35 who have completed a licenciatura (bachelor's), master's or doctorate and are employed.
- What you get: reimbursement pegged to the tuition fees associated with the degree, rather than a single flat sum.
- How it is paid: you apply only once. The Autoridade Tributária (Tax Authority, AT) then pays the premium in installments spread over a number of years equal to the normal length of the degree — so a three-year licenciatura is refunded across roughly three years of work.
A dedicated form is due to appear "shortly" on the government's portal (Portal do Governo) for the next intakes; graduates who finished in 2025 and 2026 have not yet had their chance to apply.
The fight over stacking it with IRS Jovem
The politically charged question has been whether a graduate can claim both the wage premium and IRS Jovem at the same time. The government has argued they should not, citing the cost to the budget. Parliament disagreed: in early July it voted to force the stalled refunds through and to let the two benefits be combined, over the finance ministry's deficit warnings. The rollout now beginning still reflects the more restrictive reading for those who finished by 2024, and the interaction between the two schemes remains contested — something anyone eligible should watch closely before assuming they can claim both.
The launch has not been smooth. Portugal's ombudsman (Provedor de Justiça) has already fielded around 100 complaints tied to the 2024 process, pointing to delays and technical problems with submissions — a reminder that a benefit written into law is not the same as money in an account.
What this means for residents
- If you are a recent graduate working in Portugal, check your eligibility. The premium can be worth the price of a full degree, paid over several years — but only if you registered and meet the annual conditions.
- Foreign residents can qualify too in principle, provided the degree and employment conditions are met; the scheme is tied to working in Portugal, not to nationality.
- Do not bank on combining benefits yet. Whether you can stack the wage premium with IRS Jovem depends on when you graduated and on how the government implements Parliament's vote.
For a government under pressure to keep talent from leaving — and to explain why so many young workers still cluster in Greater Lisbon or look abroad — actually getting the first 41,000 payments out the door matters as much as the promise. This week is the test of whether the prémio salarial finally becomes real cash rather than a line in the budget.
