Here are some of the changes coming into effect next year:
National minimum wage
The national minimum wage will increase by 55 euros, from 705 euros to 760 euros gross. This increase was negotiated in the income agreement signed in October between the employers’ federations and the UGT (the CGTP has not signed up).
The government says it wants the minimum wage to be 900 euros by the end of the legislature (2026).
Created in 1974, the minimum wage was one of the first achievements of the April revolution and then benefited about half of Portuguese workers. According to the Department of Labor’s 2021 Guaranteed Minimum Monthly Pay report, in June 2021, 24.6% of workers earned the minimum wage.
Salary in public administration
Increases by EUR 52 the salary of public administration employees who earn up to approximately EUR 2,600 per month. Above this salary amount, the increase is 2% (above 52 euros).
The amount of the meal allowance will also be updated to 5.20 euros (already paid to that amount since October).
There are about 740,000 civil servants.
Wages in the private sector
Private sector wages are not regulated by the government, with the exception of the minimum wage (set at €760 in 2023).
In the income agreement between the social partners, a wage increase of 5.1% was agreed in 2023. However, the wage increases for employees earning above the minimum wage depend on company decisions or collective agreements and thus differ according to the situation. case.
The government has said it aims to increase the weight of remuneration in gross domestic product (GDP) to at least 48.3% by 2026, bringing it closer to the European average.
Pensions
Pensions increase between 4.83% and 3.89%, depending on their value.
The Social Support Index (IAS) also increased by 8.4% to EUR 480.43.
With this update, pensions up to 960 euros (two IAS) increase by 4.83% and pensions between 960 euros and six IAS by 4.49%. Pensions above six IAS are increased by 3.89%.
A pensioner with a pension of which the current value is 440 euros will receive 461.25 euros from January. A pension of 500 euros will receive an increase of approximately 24 euros. A pension of 1,300 euros will rise to 1,358.37 euros in January.
The pension update is lower than what would result from the formula provided for in the law – which takes into account the average inflation without a known home on November 30 and the growth of the Gross Domestic Product (GDP) -, supplemented by the additional payment of a value which is equivalent to half board and which was already made available in October. This government decision was highly controversial and criticized.
access to retirement
The statutory retirement age is set at 66 years and four months (three months lower than in 2021).
In 2023, the application for early retirement has a lower penalty: the sustainability factor is 0.8617, which means a reduction of 13.8%. This penalty applies to pensions whose payment commences before the statutory retirement age, with exceptions provided for by law. These pensions are also subject to a reduction of 0.5% for each month of prepayment, in relation to the statutory retirement age.
Source: DN
