Minimum wage rises to 705 euros

The Council of Ministers has approved raising the national minimum wage to €705 from 1 January 2022. Civil servants with salaries updated by 0.9%.

In a press conference, the Minister of Labour, Solidarity and Social Security, Ana Mendes Godinho, reported the approval of the increase in the national minimum wage for 2022 to 705 euros, "following the auscultation of the social partners", fulfilling the commitment made in 2015 and renewed in 2019 to "reach 2023 with 750 euros".

Companies in difficulty because of the pandemic get state support again 

The Government took into consideration the importance that the rise in the minimum wage has in promoting a more dignified work and economic growth, but also the financial weight it represents, in the current economic situation, for companies. Thus, the minimum wage update will be accompanied, once again, by an exceptional measure to grant employers a cash subsidy corresponding to a fixed amount per worker earning the minimum wage, when the conditions for granting it, as set out in the decree-law that increases it, which will soon be published in the Diário da República.

The support will be "112 euros paid at once per worker earning the minimum wage" of 2021 and "a support of half this amount for workers who have a remuneration range between 665 euros and 705 euros," respectively the minimum wage of 2021 and 2022, said Ana Mendes Godinho.

The Government has also introduced an exceptional mechanism to value employers who had collective bargaining in 2021, and by virtue of which has increased the salary of workers above the minimum value legally established for the current year. These employers will receive the 112 euros for all workers who have salaries between 665 and 705 euros in 2021 for this reason.

Increase in pensions

The regular update of pensions in line with inflation was also signed, with an increase of 0.24% for pensions above 2659 euros (6 SSI), 0.49% for pensions between this value and 886 euros (2 and 6 SSI), and 1% for pensions below 886 euros (2 SSI).

The Social Support Index (SSI) will also be updated, which will now be 443 euros.

The Government has also decided that the extraordinary reinforcement of the minimum value of the unemployment benefit, decided for the pandemic period, is made permanent. This minimum value will now be 1,15 of the social support index (SSI). Before 2020 it was 1 IAS. This increase covered, over the last year, about 175,000 people.

The increase of 10% in the unemployment benefit for couples with children or equivalent where both parents are unemployed also becomes definitive, also covering single-parent families.




Other articles: