Taxation

Portuguese minimum wage to rise to 705 euros in January

The Portuguese government today approved an increase in the country's minimum wage to 705 euros, with effect from January 1, 2022. The government also approved support for companies to carry out these increases, the executive said after the Council of Ministers meeting.

Portuguese minimum wage (SMN) increases to 705 euros in January

Government approves increase in SMIC (SMN) to 705 euros from January 2022. This information was communicated at the press conference following the Council of Ministers. The Minister of Labor, Solidarity and Social Security, Ana Mendes Godinho, announced the approval of an increase in the national minimum wage (SMN) to 705 euros by 2022. 

In the same way as for 2021, and given the current framework and circumstances, the Portuguese government has also today approved exceptional support for employers with employees paid the minimum wage. To quote the Minister.

Thus, a one-time payment of 112 euros per employee will be paid to employers and another 56 euros is provided for employees who are between 665 euros, this year's national minimum wage and 705 euros.

This year, a different, "exceptional" mechanism has also been introduced, the Minister explained, to "reward employers" who in 2021, through collective bargaining, have increased the minimum wage above the value legally established for 2021.

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