Portugal: businesses entitled to claim compensation of €112 per employee for minimum wage increase

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As of 1 February, companies in Portugal can register on a platform to claim compensation for the increase in the guaranteed national minimum wage, regardless of their legal status. The minimum wage rose from €665 at the end of 2021 to €705 on 1 January 2022, marking an increase of €40. This wage is paid over 14 months and amounts to €823 on a monthly basis (€775 in 2021, see article n°12854). The financial aid granted by the state to companies will amount to €112 per employee working full time, with declared basic pay that is equal to or higher than the 2021 minimum wage (€665). This support payment will however only amount to €56 (50% of €112) if their wage is between €665 and €705. As AFP reports, the Portuguese economy ministry says the move is with a view to “supporting the economy’s recovery”, after the damage inflicted by the Covid-19 health emergency.

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