Minimum wage to rise to €1,000

The Government foresees an increase in the national minimum wage to 1,000 euros in 2028 and an increase in the average salary to 1,750 euros in 2030.

By TPN/Lusa, in News, Portugal · 11 Apr 2024, 19:02 · 4 Comments

"In Portugal, the value of the average salary is very close to the value of the minimum wage and there are few incentives for productivity. Increasing the national minimum wage to 1,000 euros in 2028 is, therefore, an objective of the Government".

Luís Montenegro's team also promises to "promote the conditions to sustain the increase in the average salary to 1,750 euros in 2030, based on productivity gains and social dialogue".

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Comments

Setting the goal for 2028, in 2024. This means that in 4 years they expect to increase the minimum wage 160 (at least) to reach that number. It averages €45 per year, in 4 years , it seems realistic (with confortable room to improve) but somehow below the last upgrades with PS. The fact of it being associated with the "average" €1.750 income in 2030 (6 years from now) opens some room to flexibility "tricks ", along with the usual political semantics and the global economy excuses to blame in the end if needed. It sets a pessimistic goal, from the perspective of the majority of the people ( the ones getting the minimum wage, the ones lowering that obscene average to the €1.750). This coligation most likely will be expelled from the government in 2 years or less.

By Bruno Cirac from Other on 11 Apr 2024, 23:34

It's foolish and irresponsible for the government to forecast average wages in 2030, something it might influence, but can never control. What companies pay their employees depends on productivity, and the share of value added going to labour: the latter has been declining for decades.
The government only controls the minimum wage, so should limit its pronouncements to that.

By Billy Bissett from Porto on 12 Apr 2024, 10:23

So they are going to increase it to 6.25€ an hour and they are not going to achieve that for another 4 years. In the meantime I see everyone driving around in expensive cars and buying million euro homes. I can't see too many people on the minimum wage praising this. The UK minimum wage this year increases to £11.44 which is double what Portugal hopes their's will be in 4 years time. This will just mean more young people having to work overseas to earn a living. And the problems of rich foreigners buying up the houses for profit and locals priced out. It's not forward thinking at all. It will only lead to more anger and an excuse for the right wing to gain more votes as is happening across Europe.

By Andrew Cossins from Beiras on 13 Apr 2024, 10:17

As a not so rich foreigner, but comfortable, I think the government should increase taxes significantly on the wealthy and increase minimum wage now! And make it 10 Euros/hour. The wealthy don't add anything like the same value to a country and society than the majority do. Tax the wealthy + Good minimum wage = happy society. And a happy society is where wealthy people feel safe and flock to, so more taxes for the country. Seems pretty simple to me.

By Ellya Gold from Algarve on 15 Apr 2024, 08:09