Minimum wage may rise to €705 next year
The amount of €705 is almost halfway between the current minimum wage in 2021 (€665) and what the government has set as a target for 2023 (€750).
The amount is not yet closed, but next year the minimum wage may rise to €705, according to several sources heard by Jornal de Negócios. If confirmed, it will be a nominal increase of 6%, the most expressive since 1993.
The €705 are almost halfway between the current minimum wage this year (€665) and what the government has set as a target for 2023 (€750) and represent an increase in the trajectory of the minimum guaranteed pay to offset the slowdown caused by the pandemic crisis (in 2021, the nominal increase was 4.7%).
The minimum wage increase is usually presented to the social partners between November and December, along with a more advanced phase of negotiation of the State Budget. As for the trade unions, UGT defends an increase of €50 already in 2020. The employers believe the minimum wage increase should be indexed to growth, inflation and productivity indicators. Jornal de Negócios also writes that it is uncertain how many workers are currently receiving the minimum wage and will thus be covered by the update that the government has already said it intends to make.
