Productivity and the salary policy that matters
The article discusses the disparity between salary increases and productivity growth in Portugal over the last decade. While average salaries have risen by 44%, this has not led to a real increase in purchasing power, as productivity has not kept pace. The Minister of Labour has raised concerns about the need for real productivity gains to sustain salary growth. Current government policies have pushed minimum wages to high levels without considering economic growth or productivity, threatening smaller businesses and leading to structural imbalances in the economy, such as inflation and reduced competitiveness. The article emphasizes the need for salary increases to be aligned with productivity and economic growth to ensure a sustainable future for the country's economy.
