Left Menu
Development News Edition

Portugal to raise minimum wage to 635 euros, still lowest in western Europe


Portugal to raise minimum wage to 635 euros, still lowest in western Europe
Image Credit: Wikipedia

Portugal's minority Socialist government presented on Wednesday a proposal to raise the monthly minimum wage by nearly 6% to 635 euros ($700) next year, remaining the lowest in western Europe.

Prime Minister Antonio Costa promised to raise the monthly minimum wage by 25% to 750 euros by 2023 when he began his second term in office last month. "This trajectory contributes to the recovery of income and the improvement of social cohesion levels," the government said in the plan, seen by Reuters. "The increase has coincided with significant dynamism in the economy and the labor market."

One in five workers in Portugal is on the minimum wage and the employment status of 890,000 people was last year officially described as precarious, a term used to refer to non-standard forms of employment, including temporary work and fixed-term contracts. Costa's center-left Socialists, who presided over four years of strong economic growth and budget deficit cuts, won an Oct. 6 election, expanding their parliamentary representation as to the biggest party but still just shy of a majority.

Now governing alone, Costa relied on support from two far-left parties - the Communists and Left Bloc - in the last four years and the wage plan is likely to be well received by them. JOB INSECURITY

Handed over to workers' unions and others during a meeting on Wednesday, the government's proposal said the new minimum wage of 635 euros will be implemented on Jan. 1, 2020. Increases will be negotiated and reviewed every year until it reaches the 750 euros target in 2023.

Between 2015, when the Socialists took power, and 2019, the minimum wage increased 14%, from 505 to 600 euros, way below neighboring Spain's 1,050 euros. "But the salary increases have not yet reached the pace of growth needed to ensure a balanced distribution of income," the government said, adding Portugal "remains one of the countries with the highest income inequality rates in the European Union."

Analysts see job insecurity as a big flaw of the economy, which is cooling after recording its strongest expansion in almost two decades in 2017 as Portugal recovered from a debt crisis that required an international bailout. Portugal's biggest workers' union CTGP said the increase to 635 euros is "insufficient", arguing the country is now "in a position to go much further".

($1 = 0.9074 euros)

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)


TRENDING

OPINION/BLOG/INTERVIEW

Hyderabad Encounter: Time to review modern judiciary and restore people’s confidence

Its probably for the first time in the history of independent India, the parliamentarians, chief ministers and ministers in the Union and State governments are openly supporting an encounter. This indicates the people from top to bottom hav...

What happens to your outstanding loans if the bank falls?

... ...

Time for a change! Innovations to stop the growing plastic pollution

As the planet is drowning in plastic pollution, many new innovative approaches and solutions have emerged to effectively deal with the menace....

How to avoid fake universities and fishing bait like Farmington

As education sharks are roaming around to prey, we present a guide on how to mitigate hunters and reach to a genuine universityinstitute. In this era of commercialization of education, the fake universities and economic frauds in educationa...

Videos

Latest News

Mexico thanks Trump for holding off on terrorist designation for drug cartels

Mexicos foreign minister, Marcelo Ebrard, on Friday thanked U.S. President Donald Trump for holding off on classifying Mexican drug cartels as terrorist groups, a proposal that Mexicos government had opposed.Im thankful for President Donald...

Conditions right for India to be global superpower of 21st century: Shringla

Asserting that the Indian economic juggernaut is on a roll, the countrys top envoy in the United States on Friday said that conditions are right for India to be a global superpower of the 21st century. The Indian economic juggernaut is on t...

Retired Olympic skater Kwan unscathed after auto collision

Two-time Olympic medalist Michelle Kwan was uninjured after an auto accident on Friday, when a mattress flew off of another vehicle causing a collision, according to her recounting of the bizarre incident. The 39-year-old retired figure ska...

UPDATE 1-Trump calls for World Bank to stop loaning to China

U.S. President Donald Trump on Friday called for the World Bank to stop loaning money to China, one day after the institution adopted a lending plan to Beijing over Washingtons objections.The World Bank on Thursday adopted a plan to aid Chi...

Give Feedback