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Economic and Social Council: Government goals for the evolution of the minimum wage should be reviewed

The Economic and Social Council (CES) argues that the Government’s goals for the evolution of the national minimum wage in the coming years should be reviewed, taking into account the level of inflation in 2022 and 2023.

The position of the CES is contained in the opinion on the Great Options (GO) for 2022-2026 to which Lusa had access and which was approved this Tuesday in the plenary session of that consultation body and Social Dialogue, without votes against and with eight abstentions.

Given the high level of inflation forecast for 2022 and 2023, it may be necessary to review the previously established goals regarding the evolution of the national minimum wage in the coming years,” the document reads.

The objective presented by the Government for next year is to update the minimum wage from the current 705 euros to 750 euros, but the Executive has meanwhile presented the intention of moving forward with an additional salary to deal with inflation, so the value should be above the announced target. The Government also aims for the minimum wage to reach 900 euros at the end of the legislature, in 2026.

As for public administration, the body chaired by Francisco Assis “states the Government’s intention to continue valuing” public servants, but stresses that “Given the real loss of wages recorded in the last decade” suggests “greater ambition in the assessment of careers and wages, with a view to attracting and retaining workers.”

The opinion of the CES was prepared before the Government made known to the unions of the sector the proposal of increases for the civil service, in a meeting held this Monday.

In the document presented to civil servants’ unions, the Government proposes a multi-year mechanism (until 2026) that provides for minimum monthly increases of around 52 euros for civil servants, ranging from 8% for the lowest salaries and 2% for from 2,570 euros.

The CES also considers “insufficient” the measures to respond to the price increase announced by the Government.

“The GOs report that the amount of financing for the measures to respond to price increases is 5,685 million euros, financed from national sources, with the largest amount in 2022 (5,483 million euros), followed by 2023 ( 157 million euros) and 2024 (45 million euros)”, says the council.

In the document, the CES underlines “the effort to combat the increase in the cost of living, however, considers these measures insufficient, especially in a context of expected increase in tax collection.”

Regarding the single payment of 125 euros per adult with monthly income of up to 2,700 euros, the CES says that “it is insufficient to compensate for the accumulated income losses.”

Regarding the exceptional supplement for pensioners in 2022, with the allocation in October of 50% of the amount of the pension, “it could result in a non-updating of pensions in the future, given the values ​​expected with the application of current legislation” , warns the CES.

Source: Observadora

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