Taking advantage of the troika cuts in Greece and freezing the increase this year in that country due to the pandemic – in the form of Spain and Estonia – Portugal has overtaken Greece in the list of European countries where the minimum wage is legally fixed.
The ranking presented in the latest report by the European Foundation for the Improvement of Living and Working Conditions (Eurofound), Quoted from DVIt shows that the Portuguese minimum wage, which rose by 30 euros in 2021, to 665 euros per month (776 euros, as of 14 months), now ranks 11th in a group of 22 countries.
At the top of this list are Luxembourg (€2,202), United Kingdom (1903€), Ireland (1,724€), Netherlands (1,685€), Belgium (1626€), Germany (1610€), France . (1555€), Slovenia (1110€), Spain (1108€) and Malta (785€).
In countries such as Austria, Denmark, Italy, Finland, Sweden and Norway, minimum wage levels are determined through collective bargaining.
In percentage terms, the increase applied this year in Portugal (4.7%) is the seventh largest. The increases in Eastern European countries, where Latvia advanced by a large margin, stand out, with a growth of 16.3% compared to the value exercised in 2020.
Compensation until July 9 and new increase in 2022
The Portuguese government has already recognized an increase of about 6% in the national minimum wage in 2022, equivalent to about 40 euros, which will increase the current value of 665 euros to 705 euros. It is estimated that a world with more than 800,000 people, about one-fifth of the employees, receive the minimum wage in Portugal.
As announced in May by the Minister of Economy, Pedro Sisa Vieira, the state will pay companies 84.5 euros for each worker who was receiving the minimum wage on December 31, 2020 and is still in the workforce. Based on the calculations, it gives about 84% of the increase in TSU fees resulting from the increase in the national minimum wage in 2021. Companies can ask to pay this compensation until July 9.