The minimum wage in Portugal will increase by 7.9% starting in January, from 760 to 820 euros in 14 months, according to an agreement signed on Saturday by the Government and some unions and employers’ representatives. In Portugal, employees receive their monthly salary 14 times, with a 13th salary at Christmas and a 14th during the summer holidays.
The reference given by the social consultation in terms of 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,” greeted socialist Prime Minister Antonio Costa, highlighting that this is the largest annual increase in the minimum wage ever observed.
Agreement that was not unanimous
The document was signed by the UGT union confederation, more moderate and closer to the Socialist Party, but not by the majority CGTP confederation, historically close to the Communist Party.
On the business side, the most important association representing Portuguese companies, particularly the industrial sectors, also refused to sign the agreement, which, however, had the support of representatives of commerce and services, of the tourism and agriculture. According to forecasts published last week by the Bank of Portugal, the Iberian country is expected to experience inflation of 5.4% for the whole of 2023, after a price increase of 7.8% last year.
Source: BFM TV
