The Portuguese minimum wage is increasing gradually but it has one of the lowest purchasing powers. Eurostat has stated some findings which inform us that the difference between the minimum wages is very small if they are adjusted according to the price level of the country because of minimum wage in Portugal.
Minimum Wages Will Increase
It is noted that the minimum wage in Portugal has been increasing gradually for a few years. The current lowest wage in the country is noted to be 820 Euros at this moment. Portugal is currently at the middle of the table for the minimum wages. This table has all the European Union (EU) countries and Portugal lies around the middle of the table. This year, Poland has overtaken Portugal in this list.
Also Read: Construction Of A New Municipal Daycare Center With 107 Spaces Has Started In Abrantes
Portugal is currently at the bottom of this list. This is due to the purchasing power for the national minimum wages in the country. The country can go up and down the list according to the current wage rate. The remaining adjustments are done to the minimum wages of the EU countries. This is due to the difference in the prices of consumers for each country. It then results in purchasing power parties (PPP) which decide your rank in the European Union (EU) list. Eurostat has stated:
The disparities in minimum wages are considerably smaller after adjusting for differences in price levels.
This is why it is important to have your minimum wage rate higher for the country. The only way your country can rank higher on the list is by keeping a good minimum wage rate. This year Poland has surpassed Portugal. In the future, Portugal can pass Poland by increasing the wage rate in the country.
Portugal Must Have Higher Purchasing Power
There are very few countries that are below Portugal on the list of national minimum wages. The only countries below Portugal are Bulgaria, Latvia, Estonia, Slovakia, Hungary, Czech Republic, Estonia, and Malta have less purchasing power. Portugal is currently at 8th among the EU countries of lowest purchasing power. Although the group of minimum wages between the PPP 1,000 and 1,250. It also includes some other countries like Cyprus, Croatia, Lithuania, Greece, and Romania.
The countries of Luxembourg, Germany, the Netherlands, Belgium, France, Ireland, Poland, Spain, and Svoboda have the greatest purchasing power parities for workers. This value is currently over 1,250.
When looking at the EU member states that have minimum wages, Luxembourg had the most in July which is around 2,571 Euros. This value is 5.4 times more than Bulgaria (477 euros). However, according to Eurostat, Luxembourg’s minimum salary is just 2.4 times greater than Bulgaria’s when considering purchasing power parity.
Read More About: Mpox Outbreaks in Portugal: Three Outbreaks Since 2022
