Portugal to Hike Minimum Wage to €870 by 2025 Amid Economic Debates

September 26, 2024
Portugal to Hike Minimum Wage to €870 by 2025 Amid Economic Debates
  • Key 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


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