The Portuguese government has proposed a 760 minimum salary for 2023, 10 euros above the anticipated, to mitigate the impact of inflation. The current minimum salary stands at 705 euros.
The government’s objective is to reach 900 euros by the end of the legislative in 2026 to “safeguard the purchasing power of workers and assure the growth started in 2016″, reads the proposal.
The government is proposing that the minimum salary grows to 760 euros in 2023, 810 euros in 2024, 855 euros in 2025, and 900 euros in 2026.
The proposal includes a salary valuation of 5.1% in the next year and 4.8% in the following year. For 2025, it includes a valuation of 4.7%, and for 2026, a valuation of 4.6%.
To reach these values, the government presumes a medium-term inflation of 2% and a productivity growth of 1.5% until 2026. It also takes into account the macroeconomic scenario predicted in the State Budget 2023, which is still not known, and the Stability Program 2022-2026.
Moreover, the government also proposes an increase in the value of overtime hours from 120 hours to 100 hours. The value goes from 25% to 50% in the first overtime hour and from 37.5% to 75% for each extra hour during work days.
For rest days and holidays, the value goes from a 50% to a 100% increase. For example, if one makes 5 euros an hour, for every overtime hour worked on a rest day, they make 10 euros an hour.
Prime Minister Antonio Costa said that an agreement should be finalized before Monday.
Moreover, the Portuguese government announced on September 5 a financial measure to help mitigate the impact of raising prices. A 50 and 125 euro one-time support will be paid to eligible families starting October 20 via bank transfer.
125 euros will be provided to the main adult, and 50 euros will be sent for each dependent up to 24 years of age. In the case of incapable dependents, there is no age limit.