Effective January 1st, 2024, Portugal increased its national minimum wage from 760 euros to 820 euros, marking a 7.8% increase. The official announcement was made through a decree-law published in the Diário da República. This law applies to the entire national territory.
The income agreement signed in Social Concertation predicted that the minimum wage would reach 810 euros in 2024, but the social partners decided to reinforce it, despite the challenges that could be expected. This understanding indicated that the guaranteed minimum monthly remuneration (RMMG) should reach at least 900 euros in 2026. However, this goal is at risk as the country will go to early elections in March, following António Costa’s resignation from office.
This revision of the national minimum wage represents a significant milestone for Portugal, reflecting the government’s commitment to improving the living standards of its citizens. However, it also presents challenges for employers who will bear the increased costs. In addition to the salary costs, they will also have to deliver social contributions every month to Social Security.
Source: theportugalnews.com, garrigues.com, portugalimmigrationnews.com, portugalvista.com
