The minimum wage is more prevalent among women, young people, workers with less education, and those with foreign nationality, according to a study released by the Bank of Portugal (BdP) on Friday.
“Between 2015 and 2022, the percentage of workers covered by the minimum wage increased from 18% to 23%. This increase was consistent across the socioeconomic groups considered. In 2022, the percentage of workers receiving the minimum wage was higher among women (27%), young people (36%), workers with basic or lower education (33%), and workers with foreign nationality (38%),” the BdP reveals in its ‘Economics in a Picture’ section.
Furthermore: “In Portugal, the national minimum wage (SMN) is defined annually by the Government through a decree-law, after consultation with the Standing Committee on Social Concertation.”
“By setting a minimum wage limit, the SMN directly affects the pay structure of private sector workers. The more significant updates to the minimum wage in recent years have resulted in an increase in the number of workers covered and a greater prevalence in the wage distribution,” the report states.
This analysis was prepared by Sónia Félix and Fernando Martins. “The analyses, opinions, and results expressed in this space are the sole responsibility of the authors and do not necessarily coincide with those of the Bank of Portugal or the Eurosystem,” it is noted.
