In Portugal and Spain, a major sourcing country in particular for the textile, clothing and footwear sector, an increase in the minimum wage was recorded at the beginning of 2024.
In Portugal, the minimum wage rose by 7.9% to 1.andJanuary 2024, from 760 euros to 820 euros over 14 months. Portuguese employees receive a total of 13emonthly salary at Christmas and a 14ein summer.
This is the largest annual increase in the minimum wage ever observed in the Iberian country. It exceeded inflation recorded by Portugal for the year 2023, i.e. 4.3% compared with 7.8% in 2022. While most European countries are stuck with the inflationary shock, Portugal seems to be pulling its pin from the game with a relatively good economy. Surprisingly, the inflation rate in Portugal peaked at 10.1 per cent in October 2022, its highest in 30 years, and the country had approached the financial bankruptcy in 2013. Today, Portugal seems economically perceived as « the good student of the European Union ».
In Spain, the minimum wage of nearly 2.5 million people has also increased by 5% to €1,134 over 14 months, an increase of €54 per month, which will particularly benefit young people and women. An increase granted despite opposition by the employer and retroactive to 1 January 2024.
Since 2018, the Spanish minimum wage has increased by 54%. It was 735 euros, one of the weakest in the European Union. The government wants to raise the minimum wage to 60 per cent of the Spanish average wage, which was posted to 2,128 euros in 2023.
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Source(s): The Tribune | The Figaro
Editor(s): C. Bedouin