##  [Increase of the minimum monthly wage € 705.00 and exceptional measure of compensation](/en_GB/new/increase-minimum-monthly-wage-eu-70500-and-exceptional-measure-compensation) 

# Increase of the minimum monthly wage € 705.00 and exceptional measure of compensation





Portugal - 12 / 10 / 2021





Portugal Labor Alert













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**It was published in the Official Gazette the Decree-Law no. 109-B/2021, December 7, which determines the increase of the minimum monthly wage to € 705.00, with effects from January 1st, 2022, onwards and creates an exceptional measure to compensate this increase.**





## **Minimum monthly wage** 

From January 1st, 2022, onwards, any employees that are currently receiving a wage inferior to € 705.00 will be entitled to have their wage updated, at least, to that amount.

The minimum monthly wage determined by law overrules any lower values agreed upon in the employment contract or in the applicable Collective Bargaining Agreement (CBA). In the case of part-time employees, the minimum monthly wage is calculated proportionally.

The minimum monthly wage of the employees from the Madeira and Azores autonomous regions is subject to specific ruling.

## **Exceptional measure of compensation**

An exceptional measure of support for employees was created to compensate the increase of the minimum monthly wage. This compensation corresponds to a fixed amount of money per employee and shall be paid in the following terms:

![](/sites/default/files/20211210_tabla_atualizacao_da_retribuicao_en.jpg)

Access to this compensation is dependent on the employee fulfilling the following conditions:

- Having one or more full-time employees with a base remuneration equal to or higher than € 665.00 and lower than € 705.00 in the remuneration statement of December 2021;
- Having their tax and social security contributions situation in order.

This cash benefit is a one-off subsidy paid by IAPMEI – Agência para a Competitividade e Inovação, I.P. (IAPMEI) or by Instituto do Turismo de Portugal, I.P. and may be cumulated with other support measures, including those granted due to the COVID-19 pandemic.

To access this compensation, employers must register in the websites of the abovementioned entities until March 1st, 2022. Failure to do so will determine the forfeiture of the right to the cash benefit.









[Portugal](/en_GB/tags/portugal), [Labor and Employment Law](/en_GB/tags/labor-and-employment-law)





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 This publication is provided for information purposes only and does not constitute legal advice or advice of any other kind. It does not seek to offer a comprehensive summary of the legislation and developments to which it refers nor to cover all published material, but rather to provide an overview of selected topics. It is therefore recommended that the official texts be consulted and specific professional advice be sought. Garrigues does not accept any liability for the use made of this information and assumes no obligation to update it after publication.



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