Increase of the minimum monthly wage € 705.00 and exceptional measure of compensation
Portugal Labor Alert
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:
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.
Contacts
