The Minister of Solidarity, Employment and Social Security considered this Wednesday that a good agreement for raising the minimum wage, which will increase to 505 euros to 01 October was achieved.
“Reaching this agreement entailed commitments, but we got a good deal,” said Minister Pedro Mota Soares at the entrance to the Economic and Social Council where the agreement to increase the National minimum wage is being formalized .
also the prime minister, Pedro Passos Coelho, and the Deputy Prime Minister, Paulo Portas, who was excused to provide comments to the entrance of the meeting The act of formalization are present.
The president of the Confederation of Portuguese Industry (CIP), António Saraiva, told reporters that it was not easy to agree but that it was possible consensus, in which he said, always believed.
António Saraiva explained that, as of October 1, the new minimum wage will cost employers 733 euros per worker but this cost would be higher if the Single Social Tax (TSU) paid by companies not had been reduced.
According to the accounts of the President of the IPC, currently, each minimum wage of 485 euros costs companies 708 euros due to the increase in employer contributions to social security.
With the new value, each minimum wage going to cost 733, but would cost five euros if the Government had not relieved the TSU by 0.75 points, according to the calculations of António Saraiva.
according to the increase in the national minimum wage to 505 euros, which will come into force on 01 October, was closed this afternoon between employers’ associations, the government and the UGT.
This increase was agreed after several meetings between the social partners and the Government, except the CGTP, held in the margins of the Social Dialogue throughout the month of September.
Currently the minimum wage is 485 euros and is frozen since 2011 pursuant to an agreement for Social Dialogue 2006, this compensation should have been fixed at EUR 500 in 2011
Mota Soares reduction ensures that TSU is positive for the State
A decrease of 0.75 points in the Single Social Tax (TSU) in return for raising the minimum wage to 505 euros is positive for the state coffers.
“This is a measure that is wholly positive for the state coffers,” said Pedro Mota Soares told reporters after signing with the social partners, except the CGTP, the agreement will increase minimum wage to 505 euros from 01 October.
For employers confederations accept this increase, the Government undertook to download this minimum wage applicable to the TSU and paid by employers by 0.75 points. This reduction will be valid for the same period of the new minimum wage, until December 2015
The governor praised the agreement reached and stressed that it was agreed that future updates of the minimum wage should be related to productivity of the country, as the government has been advocating.
“The Government’s concern is to protect our economy, the competitiveness of businesses and protect jobs,” said Mota Soares.
According to the minister, and despite a decrease of 0.75 points TSU paid on the minimum wages, “it is possible the growth of contributions to social security.”
“Reaching this agreement entailed commitments, but we got a good deal,” the minister had said Pedro Mota Soares at the entrance to the Economic and Social Council where the agreement was formalized.
In the act of formalization was also attended by Prime Minister Pedro Passos Coelho, and the Deputy Prime Minister, Paulo Portas, who did not provide any statement or the input or the output of the meeting.
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