Minimum wage is not adequate for a decent life

Portugal’s minimum wage is between 35% and 42% below what is necessary to provide a decent standard of living

This is according to a study ‘Decent Salary in Portugal’ coordinated by the economist José António Pereirinha which is calling for an incomes policy that goes further than the minimum wage defined by the government.

Unlike the minimum wage of €920 gross, defined by the government and in force since January and based on what companies can afford to pay, the economist believes that the concept of a “living wage” stems from the real needs of workers and their families, potentially implying increased public support to ensure equity without violating the principle of “equal pay for equal work.”

According to the study, in 2022 the minimum wage was between 35% and 42% below what is necessary for a dignified life, but the absence of an official benchmark hinders its application, leading the author to advocate for the creation of a working group to validate methodologies and establish a benchmark value that can guide public policies.

Source: Negócios; Credits: Freepix.