![[Portugal] 5.1 per cent private sector wage increase deal reached for 2023](http://gpa.net/cdn/shop/articles/bigstock-Porto-Portugal---October--449189451_1200x.jpg?v=1665425937)
Portugal's government, major business associations and its second-largest labour union, UGT, have struck a deal to increase the wages of private sector workers by 5.1 per cent in 2023, Reuters reports.
The four-year pact was announced late on October 9. The announcement, which followed months of negotiations, also includes a compounded rise to 20 per cent by 2026, in an attempt to offset the effects of surging annual inflation. Inflation reportedly hit a three-decade high of 9.3 per cent in September.
The increases are a benchmark for the more than 4 million private sector workers in Portugal and were agreed upon by its powerful associations of industry, tourism, agriculture, commerce and services. The proposed private sector salary increase for 2023 is higher than the 3.6 per cent average increase the government is willing to award to Portugal's more than 733,000 civil servants.
In June, the average monthly salary of private sector workers increased by 4.4 per cent from the previous year, while civil servants had an average 1.4 per cent increase, according to official data.
Portugal's Prime Minister Antonio Costa said that the government would give tax benefits to companies in return for wage increases, especially on investments in research and development, as well as incentives to reinforce their capital positions.
Mr Costa said firms that increase wages as agreed and reduce the pay gap between high and low earners will have a tax benefit equivalent to 50 per cent of the salary increases.
"The agreement is a framework of confidence, it gives everyone certainty about the objectives for improving (workers') income and the competitiveness of the economy," the prime minister said.
The deal also reportedly considers raising the monthly minimum wage to 760 euros ($739) in January 2023 from the current 705 euros and gradually raising it to 900 euros within four years.
Source: Reuters
(Quote via original reporting)
Portugal's government, major business associations and its second-largest labour union, UGT, have struck a deal to increase the wages of private sector workers by 5.1 per cent in 2023, Reuters reports.
The four-year pact was announced late on October 9. The announcement, which followed months of negotiations, also includes a compounded rise to 20 per cent by 2026, in an attempt to offset the effects of surging annual inflation. Inflation reportedly hit a three-decade high of 9.3 per cent in September.
The increases are a benchmark for the more than 4 million private sector workers in Portugal and were agreed upon by its powerful associations of industry, tourism, agriculture, commerce and services. The proposed private sector salary increase for 2023 is higher than the 3.6 per cent average increase the government is willing to award to Portugal's more than 733,000 civil servants.
In June, the average monthly salary of private sector workers increased by 4.4 per cent from the previous year, while civil servants had an average 1.4 per cent increase, according to official data.
Portugal's Prime Minister Antonio Costa said that the government would give tax benefits to companies in return for wage increases, especially on investments in research and development, as well as incentives to reinforce their capital positions.
Mr Costa said firms that increase wages as agreed and reduce the pay gap between high and low earners will have a tax benefit equivalent to 50 per cent of the salary increases.
"The agreement is a framework of confidence, it gives everyone certainty about the objectives for improving (workers') income and the competitiveness of the economy," the prime minister said.
The deal also reportedly considers raising the monthly minimum wage to 760 euros ($739) in January 2023 from the current 705 euros and gradually raising it to 900 euros within four years.
Source: Reuters
(Quote via original reporting)
