Minimum wage to increase in Portugal

It will rise by 7.9% from January, from 760 to 820 euros over 14 months, under an agreement signed on Saturday by the government and some unions and employers' representatives.

Portugal's minimum wage will increase by 7.9% from January, from 760 to 820 euros over 14 months, under an agreement signed Saturday by the government, some unions and employers' representatives. In Portugal, employees get their monthly salary 14 times, with the 13th at Christmas and the 14th during the summer holidays.

The indication given by the social consultation regarding the income update for next year was also revised to 5% compared to 4.8% in 2023. “This agreement ratifies the increase in salaries and improves the competitiveness of the Portuguese economy,” welcomed Socialist Prime Minister António Costa, stressing that this was the largest annual increase in the minimum wage ever.

The agreement was not unanimous.

The document was signed by the General Confederation of Trade Unions, which is more moderate and close to the Socialist Party, but not by the majority union CGTP, which is historically close to the Communist Party.

On the employers’ side, the most important association representing Portuguese companies, especially the industrial sectors, also refused to sign the agreement, which was supported by representatives of trade, services, tourism and agriculture. According to forecasts published by the Bank of Portugal last week, the Iberian country is expected to see inflation of 5.4% during the whole of 2023, after prices increased by 7.8% last year.

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