Workers on minimum wage falls to 720,800

By TPN/Lusa, in News · 13-11-2019 09:38:00 · 1 Comments

There were 720,800 workers in Portugal earning the national minimum wage in September, a reduction of 28,000 compared to the same month last year, according to data from the ministry of labour

According to the ministry’s strategy and planning office, the year-on-year decrease was 3.8%.

The figures translate into a year-on-year reduction in the proportion of workers covered by the minimum wage, from 21.7% to 20.1% between the third quarter of 2018 and the same period of 2019.

"This decrease contrasts with the pattern normally associated with the update of the minimum wage and is significant mainly because it occurs in a context of strong employment growth", the office of the ministry led by Ana Mendes Godinho stressed.

According to the document, employment grew by 3.8% in mainland Portugal in the third quarter, based on the Declarations of Remuneration to Social Security.

"This trend suggests that employment growth has occurred mainly in wage brackets above the minimum wage, resulting in a decrease in the incidence of the minimum wage", the same source said.

In September, the average remuneration increased 3% compared to the same month of the previous year, to €956.50.

On the other hand, taking into account the first nine months of 2019, the proportion of employees covered by the minimum wage was 21.3%, 1.1 percentage points less than in the same period of 2018.

In the nine months, the number of workersreceiving the minimum wage fell by 7,500, in a context in which 139.100 net jobs were created, the ministry of labour highlighted.

The minimum wage was set this year at €600 and, in the last four years, increased by 19% in nominal terms and 14% in real terms (discounting inflation).

The value for next year should be agreed at the Social Dialogue on Wednesday, with the government hoping to reach €750 in 2023.


720,000 minumum wage earners x 100 € increase x 12 months is 864,000,000 Million €

720,000 minumum wage earners x 300 increase € x 12 is 2,592,000,000 Billion €

Given that income and VAT taxes collected from increased wages will increase, (at least by 25 percent of the total extra wages) the government has no dogs in the fight against nominal salary increase. Do the math. Portugal would have no problem raising the minimum wage to 1,000€ / month. Emmigrant workers would be incentivized to return to their homeland, birthrates would increase, and public sentiment would too.

By João from Lisbon on 13-11-2019 10:24
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