30% of workers in Portugal earn less than 600 euros – the Daily News – Lisbon

The proportion of workers who earn the national minimum wage increased from around 12% in January 2010 to 19.6% in April 2016

Currently, 30% of Portuguese workers to earn up to 600 euros, concludes the report of the Organization for Economic Cooperation and Development (OECD) on the Portuguese economy published on Monday.

“An increase to 600 euros, paid 14 times per year, for example, to be decided by the social partners, and as provided for in the programme of the Government, it would be more than 30% of workers currently earn”, the document reads.

Source OECD explained today to the Lusa that, in practice, this means that currently 30% of the employees earn monthly salaries of less than 600 euros.

according To the quarterly report of September 2016 on the evolution of the minimum monthly wage, the proportion of workers who earn the national minimum wage increased from around 12% in January 2010 to 19.6% in April 2016, coinciding increases more intense with the updates of the value of the guaranteed minimum monthly remuneration, especially in the alteration of 485 euros to 505 euros, and in the alteration of 505 euros to 530 euros”.

in This report, drawn up by the Government, it is mentioned that, “in virtue of the last two increases of the minimum guaranteed monthly remuneration (October 2014 and January 2016)”, the proportion of workers who earn the minimum wage increased by “about 16% to about 19%”.

Recognizing that these wage increases may have positive effects on wage equality, the OECD states that there is a risk of “further exacerbate income inequalities in the extent that they reduce the prospects of low-skilled workers can’t find work.”

The organization, Angel Gurría indicates that the increase in the national minimum wage January 2016, for 530 euros, “did the minimum wage reach the salary levels of 30% of the workers employed and the value of the minimum wage reached almost 60% of the average of the wages”.

THE OECD warns that the prospects continue to rise the national minimum wage “at the risk of undoing the improvements achieved in terms of competitiveness, which are vital for exporters”.

The executive António Costa has increased the minimum wage for 530 euros in 2016 and for the 557 in 2017, and intends to continue to raise the value gradually until it reaches 600 euros in 2019, as was assumed in the Government’s program.

Another aspect pointed out by the OECD is that these pressures wage “can resurrect the administrative extensions of collective bargaining agreements [calls ordinances of extension], including to companies that were not involved in the negotiation process”.

according To the OECD report, promoting wage bargaining “at the enterprise level through requirements of representativeness, the more stringent ( … ), and with the possibility for companies to leave would result in a better alignment of the evolution of wages and the health and productivity of the companies.

in This way, it would be possible to strengthen the competitiveness of Portuguese companies, and thereby increase investment incentives, argues the OECD, adding that the negotiation is made at the company level (rather than sector level) “may be accompanied by measures which strengthen the representation of workers”.