Lisbon, Oct. 29, 2024 (Lusa) - Portugal's labour minister said on Tuesday in Lisbon that she wished the minimum wage "would go up more", because that would mean the country was doing well and growing, but she backed the need to be realistic and to provide conditions for companies.

"Our wish was for the minimum wage to rise more, for wages to rise more. That would mean we would be doing well and growing," said Maria do Rosário Palma Ramalho in response to MPs at a joint hearing with the Labour, Social Security and Inclusion and Budget, Finance and Public Administration committees.

However, she emphasised that the government was not able to replace the Social Dialogue, noting that the partners had defended an increase in the minimum wage to €870, "more ambitious than planned".

On 1 October, the government, the four business confederations, and the UGT signed the new tripartite agreement on wage increases and economic growth for 2025-2028, leaving the CGTP out.

The new agreement revises the trajectory of the national minimum wage upwards, providing for increases of €50 per year until 2028.

For next year, the government is proposing that the minimum wage be raised to €870 gross, an increase of 6.1% compared to the current €820 and €15 more than the amount provided for in the current income agreement (€855). It will then rise to €920 in 2026 (an increase of 5.7%), to €970 in 2027 (an increase of 5.4%) and to €1,020 in 2028 (+5.2%).

"We're ambitious in our goal, but we're not just interested in the salary. We have to be realistic and calibrate," she said.

Arguing that there should be no race to the bottom, the minister said it was necessary to create the conditions for companies to grow, consequently allowing wages to rise.

PE/ADB // ADB.

Lusa