Flash News NA 4/12/2023
Minimum wage for 2024 in Portugal
The national minimum wage is the minimum base remuneration that employees are entitled to receive in Portugal. This value is set annually by the Government, after consultation with social partners, considering inflation, productivity, economic growth, and competitiveness.
In 2024, the national minimum wage will increase by 60 euros, from 760 euros in 2023 to 820 euros. This increase represents a rise of 7.9%, clearly above the inflation forecast for 2024, which is 2.9%.
The national minimum wage in 2024 will benefit around 1.2 million workers, who will receive an additional 60 euros gross per month, or 840 euros per year. However, this value is still subject to an 11% contribution to Social Security, so the net value will be 729.80 euros per month. In addition, workers who receive the national minimum wage are exempt from IRS, as the reference value for the minimum existence in 2024 will be 11,480 euros, which corresponds to the national minimum wage calculated over 14 months.
Also pensions will be updated according to the formula provided by law. Thus, pensions up to 1,020 euros will increase by 6.2%, between 1,020 and 3,061 euros will increase by 5.8%, and above 3,061 euros will increase by 5.2%. These updates will affect about 2.7 million pensioners and cost the State more than 2,223 million euros.
The national minimum wage in 2024 was approved by the Council of Ministers on November 9, 2023. The new value comes into effect from January 1, 2024, and will be reviewed annually, with the goal of reaching 900 euros in 2025.
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