The European Trade Union Confederation has spotted that the minimum wage in Portugal is too low for workers ever to raise themselves above subsistence level.
The Confederation says that the minimum wage in Portugal, although it may seem statistically high, is still "very low" in absolute terms and insufficient "for workers to live on what they earn."
In a report issued today by the Confederation, ‘Minimum wages should not be poor wages’, 10 of the 19 EU countries surveyed have a national minimum wage whose value is 50% below the median salary.
In the case of Portugal, which has a minimum wage of €557, at first sight this looks OK as it represents 58% of the national median wage and 42% of the average wage, but it is not.
This is because the scale of wages in Portugal - and in Romania - is so low that "the level of the minimum wage is apparently high in relation to the average wage but is not enough for workers to live on."
In both Portugal and Romania, the minimum wage appears to be high due to, "uneven wage distribution with a high concentration of wage earners at the bottom of the wage scale."
According to Confederation, the examples of the two countries show that a European policy is needed with measures to strengthen collective bargaining "in order to stabilise and raise the total wage structure and to change the unequal wage distribution."
This is not what the European Commission wants at all, for years it has moaned about ‘competitiveness’ whenever a rise in the minimum wage has been suggested by Portugal’s government.
What the eurocrats choose to forget is the cost of living in Portugal, the high cost of utilities compared to wages and rising housing and fuel charges.
One of Prime Minister António Costa’s key socialist policies has been to raise the lowest pension levels and to increase the national minimum wage.
This annoys Brussels which would have wage slaves living in penury at the altar of capitalism but Costa's policy successfully has been carried out and, while a small increase looks rather pathetic in the hand, the ‘feel good factor’ at least makes wage earners feel better disposed towards the government.
Comments
"at least the foreign ones contribute with half a million euros to the state budget to get in the country,"
Sorry, how does buying a house from a private individual add half a million to the state budget?
Xenophobic huh? What do you call your "you wouldn't have a job if it weren't for us civilized people"? You sound just like the americans who are dependent on mexican migrant labour but treat it with contempt.
It truly is up to the EU to end the so called passport benefits for UK citizens into the EU, whether that is for goods or people. EU retirees are leeches to this country, at least the foreign ones contribute with half a million euros to the state budget to get in the country, what ever tax benefits they get afterwards, were pretty much paid for anyways. Property market in Portugal is out of balance, always was, and will continue to be as long as wages are low. it is a hoarders market, specially because there aren't that many people capable of buying.
Wonderful xenophobic comments. If the British, German, Dutch and French left the Algarve, you would be truly stuffed.
It's not up to the EU to end 'travel priviledges' (whatever those are) for the British. It's up to your government which welcomes foreigners with an obscenely generous red carpet of tax benefits. You can't really blame people for taking advantage, why do you think the property market is so buoyant, thus making many Portuguese sellers very happy indeed.
Honestly who cares about the locals as long as you miserable people get to live off the sweat of others. maybe you should go back to the country you came from, and maybe the EU should end traveling privileges for UK citizens after brexit, in fact that would be a blessing.
That is the reason we have decided to live in Southern Europe, instead of Northern Europe.
People without disposable income have no money to spend. they scrimp and save in a stressed state, and the economy as a whole goes nowhere.
The concentration of wealth is a result of capitalism, but is self-defeating. People who feel financial secure invest, buy, consume far more than a few rich families do.
People who are underpaid and financially stressed revolt and vote for communists.
That wouldn't make the capitalists happy.
Pay people a decent wage; it's profitable.