Minimum Wage Increased (Jan 23 2020)

At a Glance

Effective January 1, 2020, the minimum monthly wage increased to EUR 635, calculated over 14 payments, up 5.8 percent from 2019. Foreign nationals travelling with family members must receive an additional EUR 317.50/month for an accompanying spouse or child over 18 and additional EUR 190.50/month per accompanying child under 18, both calculated over 14 payments. Although foreign workers typically receive salaries well above this threshold, employers are advised to check foreign workers' salaries to ensure compliance. The situation

Minimum wage. Effective January 1, 2020, the minimum monthly wage in Portugal increased to EUR 635, calculated over 14 payments, up 5.8 percent from 2019. Additional funds for dependents. Foreign nationals travelling with family members must receive an additional EUR 317.50/month for an accompanying spouse or child over 18 and additional EUR 190.50/month per accompanying child under 18, both calculated over 14 payments. Exchange rate. The exchange rate at the time of publication of this alert is 1 EUR to 1.11 USD.

A closer look

Existing employees. Employers of foreign nationals currently under work authorization must increase foreign nationals' salaries to comply with the new rule. Initial and renewal applications. Employers of foreign nationals seeking to obtain or renew work authorization on or after January 1, 2020 must increase foreign nationals' salaries to comply with the new rule. Immigration applications that do not meet the minimum salary will be refused. Pending applications. Employers of foreign nationals with pending work authorization applications as of January 1, 2020 must increase foreign nationals' salaries to comply with the new rule. Immigration applications that do not meet the minimum salary will be...