Home » News » Portugal is becoming “a country of minimum wages”, according to a study by Eugénio Rosa – Observer

Portugal is becoming “a country of minimum wages”, according to a study by Eugénio Rosa – Observer

The national average salary will increase 10.1% between 2015 and 2022, while the minimum wage will rise 39.6%, making Portugal “a country of minimum wages”, concludes economist Eugénio Rosa.

Between 2015 and 2022, according to data from the Ministry of Labor cited in the economist’s study released today, the average salary will increase by 96 euros, to 1,048 euros, while the national minimum wage will rise by 200 euros, to 705 euros (according to the intention expressed by the Government) . The “wage distortion”, as the economist calls it, is determining that the national minimum wage (currently 665 euros) represents an increasing proportion of the average wage, having already reached 67.3% of the average wage.

“This fact is transforming Portugal into a country with minimum wages, as an increasing number of workers receive only that wage”, says the economist who is a consultant at the CGTP trade union centre.

According to Eugénio Rosa, “in recent years there has been a great political concern to increase the national minimum wage, neglecting to update the salaries of the most qualified workers, which is causing strong wage distortions in the country and transforming Portugal into a country in which more and more workers receive only the minimum wage or a very close remuneration”.

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The situation in the Public Administration, whose salaries have been practically frozen since 2009, “is dramatic, being almost impossible to hire highly qualified workers with the necessary skills”, stresses the economist.

In the study, Eugénio Rosa states that on the website of the Institute for Employment and Professional Training (IEFP) there are 156 job offers for civil engineers, electrical technicians, mechanics, agronomists, among others, “whose salaries offered, in their vast majority, vary between 760 euros and 1,000 euros gross”, that is, before the IRS and Social Security discounts. “How can the country thus retain qualified staff?”, asks the economist, stressing that without highly qualified workers, the country’s economic growth and development will be impossible.

In addition, he continues, “the country spends an important part of its resources in training highly qualified young people in universities who then leave and will contribute to the development of other countries, because they do not find decent wages and working conditions in their country”.

Eugénio Rosa considers that “what is happening in the NHS [Serviço Nacional de Saúde] it should open the eyes to politicians”, with doctors and nurses “exchanging the NHS for large private health groups, which attract them by offering better pay and working conditions”.

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