Average wages in Q3 fall 4.7% due to inflation

The average monthly total gross remuneration per worker decreased by 4.7% in the third quarter, year-on-year and in real terms, with the inflation rate, which was 9.1% in the period, INE, Portugal’s national statistics institute (INE) said on Thursday.

According to INE, the average monthly total gross pay per worker (per job) increased by 4% in the quarter ending September, compared to the same period in 2021, from €1,302 to €1,353.

The regular and basic component of that remuneration increased by 3.8% and 3.7% to €1,145 and €1,076 respectively.

However, in real terms, taking the variation in the Consumer Price Index (inflation) as a reference, the average total gross remuneration fell by 4.7%, with the regular and basic components both falling by 4.9%.

According to INE, these results cover 4.5 million jobs, corresponding to Social Security beneficiaries and civil servants subscribing to the public servants’ pensions scheme (Caixa Geral de Aposentações).

Compared to September 2021, the largest increases in total remuneration were observed in education activities (7.1%), in companies with one to four employees (6.6%), in the private sector (4.9%) and in knowledge-intensive high-tech services companies (6.4%).

There were no negative changes in total remuneration, with the smallest year-on-year changes observed in the activities of public administration and defence; compulsory social security (0.5%), in companies with 500 or more employees (1.8%), in the general government sector (2.0%) and in knowledge-intensive financial services companies (0.8%).

With regard to average monthly regular gross remuneration per employee – which excludes, among other wage components, holiday and Christmas subsidies, and therefore has a less seasonal behaviour – increased by 3.8% in the third quarter compared to the same period in 2021, rising from €1,104 to €1,145.

However, adjusting for inflation, the average monthly regular gross remuneration per worker retreated by 4. 9%.

Average monthly basic gross remuneration per worker, meanwhile, increased by 3.7% in the period, from €1,037 to €1,076, but declined by 4.9% considering inflation.