The agreement between Government, employers and UGT is closed and will be formalized on Wednesday afternoon. The national minimum wage (NMW) increases 20 euros already in October and in return, the single social tax paid by companies for each employee who is receiving the minimum wage is reduced from 23.75% to 23%.
The pre-agreement was reached in the early afternoon and provides increased SMN from 485 to 505 euros from the 1st of October until the end of next year. To compensate companies with rising costs, the Government decided to resume similar to what had already been used in 2010 by executive José Sócrates measure. Discounts for Social Security fall 0.75 percentage points, a measure which will cover only companies with employees who currently receive the minimum wage and who will benefit from the increase now awake and is not applied to future hires.
The reduction will be temporary and will be valid only for 15 months (between October 2014 and December 2015).
The solution meets the requirements of the UGT and managed to erase the reluctance of the Confederation of Trade and Services Portugal (CCP), which opposed an increase this year.
The agreement also provides for the establishment of a monitoring committee, a requirement of the Business Confederation of Portugal (CIP), which will monitor the effects the increase in SMN, so that in the end of 2015, it can be decided by the increase or maintenance of the minimum remuneration. This decision shall be taken to the PUBLIC found, based on several criteria, one being the “productivity measured by Eurostat.”
The formal signing of the agreement will still take place on Wednesday in the Standing Committee of Social Dialogue in Lisbon. Various social partners told Publico that the meeting is scheduled for 18.30 and will be attended by the Prime Minister. The information was, however, not confirmed by the office of Pedro Passos Coelho.
The whole process was led by the Minister of Employment and Social Security, Pedro Mota Soares, who never hid his interest in taking the decision to increased SMN based on a broad understanding.
Contacts between Government, employers and unions-were unfolding over the past few days and, in the final stage, the agreement was dependent on the “yes” of the CCP, who opposed an increase this year.
according Out of CGTP is asking for 515 euros already increases retroactive to June and 540 euros from 1 January 2015 In addition to central was not heard in bilateral contacts, assured the PUBLIC their leader, Carlos Armenian.
The minimum wage was frozen at 485 euros since 2011.
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