Portugal to Hike Minimum Wage to €870 by 2025 Amid Economic Debates
September 25, 2024Key officials, including Ramalho and Minister of Economy Pedro Reis, will attend the upcoming meeting to discuss these issues.
However, there is division among social partners regarding the feasibility of reaching an agreement on this minimum wage increase.
The Portuguese government has announced plans to increase the minimum wage to 870 euros by 2025, marking a 50 euro increase from the current wage of 820 euros.
The government is focused on finalizing a new agreement with social partners that addresses wage enhancement and economic growth.
While Ramalho is hopeful for an agreement, she has not confirmed any proposals for additional salary increases.
Prime Minister Luís Montenegro's administration remains optimistic about achieving a consensus on these economic issues before the 2025 State Budget.
Following this initial increase, the government aims to raise the minimum wage to 920 euros in 2026, 970 euros in 2027, and 1,020 euros in 2028.
Minister of Labor Maria do Rosário Ramalho expressed a desire to conclude negotiations before the October 10 deadline for the 2025 State Budget submission.
Despite ongoing discussions, both employer and union confederations indicated that while progress is needed, reaching an agreement before the state budget is still feasible.
In related news, the public prosecutor is investigating an entrepreneur who financed the PSD-Madeira while declaring a minimum wage salary.
The impact of the inflation rate on families' finances remains a recurring theme in recent economic discussions.
The proposal for the minimum wage increase also includes measures affecting tax incentives tied to salary increases.
Summary based on 21 sources