According to an agreement signed on Saturday by the government and some unions and employers’ representatives, it will rise by 7.9% from January 760 to 820 euros over 14 months.
The minimum wage in Portugal will increase by 7.9% from 760 to 820 euros within 14 months from January. This emerges from an agreement signed on Saturday by the government and some unions and employer representatives. In Portugal, employees receive 14 times their monthly salary, including the 13th salary at Christmas and the 14th during the summer holidays.
The reference value set by the Social Advisory Service for updating income for next year has also been revised upwards, to 5% compared to 4.8% in 2023. “This agreement ratifies salary increases and improves the competitiveness of the Portuguese economy,” welcomed Socialist Prime Minister Antonio Costa stressed that this was the largest annual increase in the minimum wage ever observed.
Agreement that was not unanimous
The document was signed by the UGT trade union federation, which is more moderate and close to the Socialist Party, but not the majority CGTP, which has historically been close to the Communist Party.
Also on the employers’ side, the main association of Portuguese companies, especially industry, rejected the signing of the agreement, which was, however, supported by representatives of trade and services, tourism and agriculture. According to forecasts released last week by the Bank of Portugal, the Iberian country is expected to experience inflation of 5.4% throughout 2023, following a price increase of 7.8% last year.