Left Menu
Development News Edition

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

Reuters | Lisbon | Updated: 13-11-2019 18:28 IST | Created: 13-11-2019 18:14 IST
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)



Turbulence surrounding tobacco control in Ghana

... ...

Smart healthcare: IoT redefining the way healthcare is delivered

As the world is embracing the new wave of digitalization triggered by the pandemic and the arrival of 5G, the adoption of IoT devices will further boom. With adoption set to soar, IoT security issues and other challenges cant be ignored any...

Refugee compassion and response: Ideas to mitigate disasters now and in their future

Their homeland becomes a forbidden territory for them and more likely than not, their journey to foreign soil is no less traumatizing, not to say deadly. It is crucial to help refugees live a life of dignity and purpose....

Inadequate water infrastructure causes a tidal wave of coronavirus in rural Alaska

... ...


Latest News

Cricket-Brilliant Bairstow guides England to victory in first T20 v S.Africa

Englands Jonny Bairstow bludgeoned a brilliant unbeaten 86 from 48 balls as the tourists chased down 180 to beat South Africa by five wickets with four balls to spare on a slow wicket in the first Twenty20 International at Newlands on Frida...

Belgium lets shops reopen, but keeps Christmas curbs to prevent third wave

Belgium will let shops reopen from Tuesday, but keep other coronavirus curbs over the festive period, including limits on gatherings over Christmas and a ban on fireworks at New Year, the prime minister said.Countries across Europe have bee...

Odisha suspends IFS officer after arrest in disproportionate asset case

The Odisha government on Friday placed a senior Indian Forest Service IFS officer under suspension hours after he was sent to jail following his arrest by the anti-corruption vigilance in a disproportionate asset case, official sources said...

German troops suspected of running anti-Semitic chat group - document

German authorities have uncovered a group of soldiers suspected of organising a chat group relating to anti-Semitism, right-wing extremism and pornography, according to a Defence Ministry document seen by Reuters. Many of the 26 soldiers be...

Give Feedback