The proportion of workers in Portugal earning the national minimum wage of €530 a month rose from around 12% in January 2010 to 19.6% in April 2016.
Currently, 30% of Portuguese workers earn less than €600 a month, according to the Organisation for Economic Cooperation and Development’s report on the Portuguese economy published on Monday.
There have been two increases in the minimum wage in the last 28 months: from €485 to €505 in October 2014 and in the change from €505 to €530 in January 2016.
Recognising that these wage increases can have positive effects on pay equity, the OECD notes that there is a risk of "exacerbating income inequalities as they reduce the prospect of low-skilled workers being able to find work."
Seemingly unaware that it is close to impossible to live of €530 a month, the OECD warns that the prospects of continuing to raise the national minimum wage "risks undoing the improvements achieved in competitiveness, which are vital for exporters."
António Costa's government intends to ignore the OECD which few people take seriously, and will continue increasing the minimum wage gradually to €600 by 2019, as part of the government's electoral programme to give workers more money in their pocket to afford the ever rising cost of electricity, fuel and housing.
Comments
Don't forget Chip that you probably no longer have a mortgage to repay or kids to finance. This is where so much of the income goes. I never expected the state pension was to provide a comfortable living, but rather a back up for a private pension.
That the minimum wage in Portugal is intentionally kept low so as to facilitate the black economy - keeping people off the radar and, in times of need, out of unemployment support! Greece, thinking its being equally smart, goes the other way and has an 8,000+ euro minimum level before declaration. Meaning 60% of its workforce are off the radar. And Juncker wants to build the new Jerusalem with this level of thinking?