While the rise is considerable, wage increases have slowed dramatically more recently, and in the last 11 years, between 2010 and 2021, the accumulated gain is only 3.1 percent.
According to Expresso, which relies on data from the National Institute of Statistics (INE), in five decades, in nominal terms, average remuneration in Portugal has had an ever-rising trajectory, except for the years of the Troika. However, during an analysis in real terms – considering the impact of inflation to gauge the evolution of purchasing power associated with wages – there are other conclusions to be drawn.
“Between 1973 and 1980 there was even a drop of 2.9 percent. This scenario is reversed in the following decade, with the average salary in the country reaching 1990, more than 12 percent above that registered in 1980. An increase that reaches 37.8 percent in the following decade (between 1990 and 2000). But the arrival of the new century, which coincided with the Portuguese accession to the euro, did not bring good news for wages in the country. The accumulated gain in average remuneration slowed down to 6.8 percent between 2000 and 2010, and has remained at 3.1 percent since then”, writes the publication, noting that the scenario could be even worse if the calculations include the year 2022, marked by a high rate of inflation.
50 years? Poland achieved this sort of increase in the last 10 years where median salary increased by 62%.
By Robert from Porto on 19 Jan 2023, 14:57
A 65.6% increase is only 'considerable' because a very long time period of 48 years is being accounted for. This is an annual average increase of only 1.1% which is very low. I'd expect productivity growth to have been higher than this, which means labour is getting a lower share of value added, with more going to the suppliers of capital and business owners. My conclusion is it's better to own a successful business than to work for one.
By Billy Bissett from Porto on 20 Jan 2023, 11:54