Plan to increase Portugal’s minimum wage

epa00539494 (FILES) A file photograph dated 24 September 2004 of Autoeuropa in Palmela. Volkswagen AG said Tuesday 27 september 2005, it has decided to build its new sport utility vehicle in Germany after securing "competitive conditions" from labour representatives. VW management had suggested that the new vehicle, the Marrakesh, might be built in Portugal rather than Germany. It has insisted that the SUV could only be built at its main Wolfsburg plant at costs below those laid out in existing wage agreements. EPA/INACIO ROSA

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The new Portuguese government plans to raise minimum wages in Portugal, as new data reveals the country has one of the lowest minimum wages in Europe.

Portugal continues to be one of the European Union countries where the national minimum wage is among the lowest, despite the updates of the last four years, which raised the minimum wage by almost 19 percent in nominal terms.

Among the 22 European countries that updated the minimum wage in 2019 through legislation, Portugal ranks 12th, according to a study conducted by the Office of Strategy and Planning of the Ministry of Labour.

The minimum wage in Portugal has increased over the last four years from €505 in 2016 to €600 in 2019, a nominal increase of almost 19 percent and real (excluding inflation) of 14 percent.

Portugal’s minister of labour, solidarity and social security, Ana Mendes Godinho, has expressed her confidence that it will be possible to reach an agreement in social consultation on the evolution of the minimum wage for 2020.
“Our goal is to reach €750 by 2023 and by then we will have a discussion and debate year by year on what the minimum wage is each year,” she said.

Via Portugal News

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