Only Portugal and five other EU countries achieve a real increase in the national minimum wage

Due to price developments, the vast majority of European minimum wages lost ground in relation to the cost of living. In 21 Member States with a legal minimum wage, only six workers guaranteed real benefits. Among these, Portugal.

The assessment was made by the European Foundation for the Improvement of Living and Working Conditions (Eurofound), in the already published annual report on the evolution of the national minimum wage (SMN) in each state.

According to the study, the 6% increase in the Portuguese minimum wage in 2022, from 665 to 705 euros, translated into an effective income improvement of 2.5% at the start of the year, with data discounting year-on-year inflation. recorded in January in the harmonized consumer price index.
Besides Portugal, only Hungary, Croatia, Romania, Lithuania and Estonia, all countries with higher inflation rates at the beginning of the year, guaranteed real growth in the minimum wage.

In Hungary, a 19.5% increase in the nominal value of the minimum wage resulted in a real increase of 11.5%, the highest in what is the fourth lowest minimum wage in the European Union, which amounts to EUR 542 per month .

Only one country has not increased the minimum wage by 2022, Latvia. Among the rest, the largest loss for employees occurred in the Netherlands: an increase of 2.4% translated into a real loss of 4.9%, which is the third highest European minimum wage at 1725 euros per month.

Portugal, on the other hand, appears in 2022 with the ninth-highest minimum compensation in the block, surpassing Malta, given the 14-month reward paid in the country (the 12-month compensation is 823 euros). The European ranking is led by Luxembourg (2,257 euros) and ends with Bulgaria (363 euros).

But as early as 2023, there should be no real growth in the Portuguese minimum wage. The government plans to increase it to 750 euros, a growth of 6.3%, which could be exceeded by inflation. In May, Portuguese prices already rose by 8% compared to a year ago.

The evolution of wages and pensions in a context of accelerated inflation was the mainstay of the intervention of the Prime Minister, António Costa, at the CNN Portugal summit yesterday. The head of government reiterated the target of a 20% increase in the average salary by 2026, which is being discussed in an income and competitiveness agreement that the executive wants to conclude with the social partners by October.

As for the update of civil service salaries, the government does not remain committed to an increase in line with inflation in 2023. “The principle of the annual update remains in place. We keep the careers thawed. That will happen next year. ” What is the amount? Let’s negotiate with the unions,” said António Costa.

2% more productivity, emphasizes Centeno

On the same subject, Banco de Portugal governor and former finance minister Mário Centeno suggested an update of at least 2%, in line with targets, when asked about the limits of an update without the risk of increased inflationary pressures. of the monetary policy of the European Central Bank (ECB), to which productivity gains would be added. event.

For 2022, the Stability Program expects a productivity improvement of 3.7%, which will weaken to 2.6% the following year.

The evolution of pensions was also addressed by António Costa, with the Prime Minister anticipating a “historic” increase given by the automatic benefit update formula, which takes into account economic growth and inflation. “There is not the slightest doubt that we will stick to the formula. Laws are there to be obeyed.”

Next year, the GDP boost should bring inflation-matched increases for all pensions valued up to EUR 5318.40, with a bonus given by economic growth in lower value pensions, to EUR 2959.20.

Maria Caetano is a journalist for Dinheiro Vivo