The national minimum wage will now officially rise from the current 760 euros to 820 euros in January 2024. This value — which was agreed upon in a Social Concert in October and approved by the Government in the Council of Ministers a few hours before the President of the Republic announced to the country that he would dissolve the Assembly of the Republic — is contained in a decree-law that was published today in Diário da República.

“The value of the guaranteed minimum monthly remuneration (RMMG) referred to in no. 1 of article 273 of the Labor Code, approved as an annex to Law no. 7/2009, of 12 February, as amended currently, it is 820 euros", reads the diploma that updates the minimum wage with effect from January of next year for the entire national territory.

At issue is an increase of 7.8%, or 60 euros, in the national minimum wage. It is the biggest rise that has ever occurred.

According to ECO's accounts, for employers, this increase in the national minimum wage represents an increase of more than a thousand euros in costs per worker, considering not only salary costs but also social contributions that have to be delivered every month to Security Social.

Initially, the income agreement signed in Social Concertation predicted that the minimum wage would reach 810 euros in 2024, but the social partners decided to reinforce it, despite the challenges that could be expected.

On the other hand, this understanding indicated that RMMG should reach at least 900 euros in 2026, but this goal is at risk, as the country will go to early elections in March, following António Costa's resignation from office.

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