The Portuguese earn on average 1,069 euros. Wages rose 3.2% in the first quarter

  • ECO News
  • 7 May 2020

From January to March, the regular gross remuneration received on average by Portuguese workers grew by 3.2% to 1,069 euros.

In the first three months of the year, the average remuneration of Portuguese workers rose again. According to data released this Thursday by the National Institute of Statistics (INE), the gross monthly earnings grew 3.2% to 1,069 euros a month, from January to March.

“The gross monthly earnings per employee (per job) increased by 3.2% in the 1st quarter of 2020, compared to the same period of 2019, to 1,189 euros. The same increase of 3.2% was observed on gross regular and base monthly earnings, which reached 1,069 euros and 1,005 euros, respectively,” details INE, which stresses that these figures do not yet reflect the impact of the coronavirus pandemic on the national labour market.

Concerning the regular gross monthly earnings per employee (which excluded holiday and Christmas allowances and, thus, have a less seasonal behaviour), there was a 3.2% increase from 1,036 euros in the first quarter of 2019 to 1,069 euros in the first quarter of 2020. In the quarter-on-quarter variation, there was also an “acceleration of growth”, rising 0.6 percentage points (p.p.) more than it had grown in that period.

Regarding the variation compared to the previous quarter, it was the base gross monthly earnings per employee (which includes only basic remuneration, excluding all other components) that recorded the highest acceleration compared to December 2019 (0.7 p.p). It showed a year-on-year increase of 3.2%, from 974 euros in March 2019 to 1,005 euros this March.

In the note released this Thursday, INE recalls that average earnings “vary substantially” according to economic activity. For example, the regular earnings varied between 680 euros in Agriculture, farming of animals, hunting and
forestry, and 2,516 euros in the activities of Electricity, gas, steam and air conditioning supply.

Compared to the first quarter of 2019, it was in the Administrative and support service activities and extractive industries sector that regular earnings grew the most: 5% and 4.6% respectively. In contrast, it was in the activities of extraterritorial organisations and bodies that the smallest variation was recorded: 0.6%.

INE also highlights that in the second quarter of the year, this wage growth trend is expected to be affected by the coronavirus pandemic.