Minimum wage increase should be substantially lower, argues PSD spokesperson – Economy

The president of the National Strategic Council of the PSD, Joaquim Miranda Sarmento, considers that the increase in the minimum wage should be “substantially lower” than what has been admitted, which would set the bar at 705 euros next year.

In an interview with Negócios and Antena 1, Joaquim Miranda Sarmento stated that the PSD “is not against the increase in the minimum wage”, but defended that there are elements that must be considered in defining the increase: the economy’s productivity and the median of wages a Nacional level.

“The productivity of the Portuguese economy has been falling in the last six or seven years. Therefore, we are raising the minimum wage much above what is the growth in productivity and that is harmful”, considered the economist.

In addition, he added, “Portugal is one of the OECD countries where the minimum wage is closest to the median” which, at the moment, is around 850 euros. “This is also not a good thing because it is creating pressure on the employment of those who have salaries a little above the minimum wage,” he said.

“That said, I think that raising the minimum wage in the medium term is always important, it has to continue to rise. But more important than that, we should be discussing why the median and average wage don’t rise. And while these two do not go up, increases in the minimum wage will always be at the expense of the productivity of the Portuguese economy,” defended Joaquim Miranda Sarmento.

“Going to 705 euros means an increase of [quase] 50 euros, which is almost a 10% increase. It would have to be a substantially lower increase,” he said.

As Negócios recently reported, raising the minimum wage to 705 euros in 2022 implies an increase of 40 euros, equivalent to a nominal increase of 6% – the highest since 1993.

Source: Jornal de Negócios by

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